A leading cement manufacturer in Nigeria BUA Cement Plc says any increase in the price of the commodity at this time is wrong and the company will not be part of it. The indigenous cement firm said it has ramp up production to bridge supply gaps.
Cement price has risen astronomically in the last one year, from N2800 to N4000 depending on the locations as many Nigerians complained that a cartel in the industry is manipulating production in order to force the price up. Reports last week indicate another plan by manufacturers to increase the price of cement by at least N300 per bag.
But, BUA said in a statement that it will not engage in profiteering at the expense of consumers of the commodity. Rather, the firm said it has ramp up production to make its brand available across the country.
The firm said “We stand by our previous statements that the timing is not right for any increase in the price of major commodities while we work towards ramping up our production capacity to ensure that commodities like cement remain accessible and affordable for our consumers.
“While we are aware that demand for cement is high with current supply levels not sufficient to meet this increased demand, we do not believe the solution lies in an increase in ex-factory prices of cement – especially not at this period.
“It is our strong conviction that any increase in prices of major commodities at a time like this is not right – while Nigerians are still trying to recover from the economic consequences brought about by the COVID-19 pandemic – especially for a product for which all raw materials are locally sourced.
“BUA Cement, therefore, wishes to restate that it is not a part of the purported increase in cement prices and, we once again, enjoin and appeal to our distributors, who have been advised, to ensure there are no further arbitrary increases or excessive profit-taking in the retail price of cement.”
The company said the clarification is necessary to clear the air on the purported increase of its cement price. Some distributors and customers of the company have been agitated over the rumour and wanted to know the truth, the firm said.
“We are compelled to release this statement following requests from our distributors and customers seeking clarification as to whether BUA also intends to increase the price of its cement. This is in view of a purported increase of N260 by another major Cement producer,” BUA said.
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