BUA Cement PLC, on Sunday, October 1, slashed the ex-factory price of cement in Nigeria by 36 per cent.
A statement by the company gave the price reduction from N5,500 to N3,500.
BUA Group’s chairman, Abdul-Samad Rabiu, pledged to reduce the price on Friday, September 15, at a meeting with President Bola Tinubu.
Rabiu outlined his firm’s strategy to support the government’s efforts to lower cement prices.
He also stated that the BUA Group would inaugurate two new cement plants by the end of the year or early 2024 to flood the nation’s markets with the product.
These additions, he noted, would increase his company’s total production capacity to 17 million metric tons yearly.
Meanwhile, while announcing this latest development, BUA, one of the leading cement companies in Nigeria, said the reduction was anticipated to have a far-reaching impact on the construction industry and the broader economy.
“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.”
The firm also vowed to review the latest price further upon completing the ongoing construction of its new plants.
“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 tons per annum, BUA Cement PLC intends to review these prices further in line with our earlier pronouncements by the first quarter of 2024. 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,” the statement added.
However, BUA urged its licensed dealers to ensure end-users benefit from this reduction in ex-factory prices, as we will monitor field sales to ensure compliance.