Abdul-Samad Rabiu, the Chairman of BUA Group has assured President Bola Ahmed Tinubu of plan to slash the price of a bag of cement to N3,500.
The company is building capacity to produce at least six million metric tonnes of cement by next year, following which the price will be reduced to N3000 from the current price of N5000.
The BUA boss made this known after a meeting with the president in Aso Rock on Friday .
He spoke few days after Dave Umahi, the Minister of Works, said the federal government will prevail on cement producers in the country to reduce the price of the product.
The minister was present at the meeting President Tinubu had with the BUA chairman yesterday.
According to Abdulsamad, the decision to reduce price is meant to support the federal government, adding that the company will ramp up production, by adding two new plants early next year to ensure this is achieved.
“Let me thank His Excellency Mr. President for graciously receiving me today. I came to intimate His Excellency on the affairs of our cement business. We have two new lines of 3 million tonnes each that we will be commissioned by the end of the year,” he said.
“So I came to intimate His Excellency and also to explain to him the efforts we’re making in trying to support again the efforts of the government in bringing down the price of cement.
“With this 6 million tonnes that are commissioning by the end of the year. And by the way, His Excellency has agreed to come and commission the plants, sometimes in December or early January next year.
“So I explained to him and we want to support the efforts of the government in bringing down the price of cement. By the time these lines are commissioned, BUA Cement will to be producing about 17 million tonnes per annum. And with that, we intend to bring down the price of cement from its current level of N5000 or N5500 per bag to maybe N3000 to N3500 per bag.
“And we can only do that because we’re producing cement locally. 80% of the raw materials that we’re using to produce cement are in Nigeria. We want to support the government efforts in ensuring that the price of thess commodities are brought down.
“Incidentally, I also saw the Honorable Minister David Umahi, when I was with the with His Excellency, Mr. President, and we agreed to meet so what we’re going to do is by the time we commission these two lines is to announce to Nigerians that the price of cement is going to come down.”
Not a few Nigerians blamed cement manufacturers in the country for the rising cost of the product, a development hampering many People from owning their own homes.
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