Following the decision of BUA Cement to reduce the price of cement in the country, not a few Nigerians are watching whether other cement producers such as Dangote, will follow suit.
Dangote is the largest cement producer in the country and has come under severe criticism from not a few Nigerians, for not doing enough to reduce the price of the product.
Nigerians say the high cost of building materials, especially, cement has prevented them from owning their own homes.
On Sunday, BUA Cement owned by billionaire Abdul Samad Rabiu announced a reduction in price of its cement from N5,500 to N3,500 per 50kg bag, in a statement made available to journalists.
The statement reads, “We refer to our previous pronouncements regarding our intent to reduce cement prices upon the completion of our new lines at the end of the year, in order to spur development in the building materials and infrastructure sectors.
“As per the commitment made to reduce prices and following a periodic review of our operations for efficiency, the management of BUA Cement Plc wishes to announce and inform our esteemed customers, stakeholders, and the public that effective October 2, 2023, we have decided to bring the price reduction forward. As a result, BUA Cement would now be sold at an ex-factory* price of 3,500 Naira per bag so that Nigerians can begin to enjoy the benefits of the price reduction before the completion of our plants.
“Upon completion of the ongoing construction of our new plants, which would increase our production volumes to 17 million metric tonnes per annum, BUA Cement PLC intends to review these prices further in line with our earlier pronouncements by the first quarter of 2024.
“NOTE: all pending, undelivered orders which had been paid for at the old prices will be reviewed downwards to N3500/bag in line with the new pricing from October 2, 2023. Our licensed dealers are also enjoined to ensure that end-users benefit from this reduction in ex-factory prices as we will monitor field sales to ensure compliance.”
The business mogul said the decision was in tandem with a promise he made recently to President Bola Ahmed Tinubu after both met in Aso Rock Presidential Villa, Abuja, to support his administration.
Recall also that Dave Umahi, the Minister of Work had earlier disclosed that the federal government was considering importing cement because of the high cost of the high cost of locally made cement.
This came after some Nigerians accused Dangote of selling the product at a cheaper price in neighbouring countries.
Dangote management has however denied the allegation.
The magazine learned that other cement producers in the country have been unsettled following the Sunday announcement by BUA.
“The industry has been raffled since BUA announced the crash in price yesterday. Dealers and shop owners welcome the announcement and are now waiting to see whether Dangote and others will do the same,” an industry source said.
According to him, it should not be difficult for other cement producers in the country to reduce the price of their own products considering that they all use the same materials, labour, and other costs are almost the same.
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