BUA Cuts Bag of Cement Prices from 4650 to 3...
It's great to hear that BUA Group, a Nigerian conglomerate, is taking steps to reduce the ex-factory price of cement. This move has several implications and potential benefits:
BUA Group, a Nigerian conglomerate, has announced a reduction in the ex-factory price of cement to N3,500 per bag. The current ex-factory price is N4,650, while it is being sold at N5,000 in the market. The company stated that the new price will take effect from Monday, October 2, 2023.
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In a statement titled "Reduce in Prices of BUA Cement," the company explained that this price reduction is in line with its commitment to reducing prices and to spur development in the building materials and infrastructure sectors. The company also stated that it had reviewed its operations for efficiency before making this decision.
BUA Cement PLC intends to further review prices in the first quarter of 2024 upon completion of the construction of its new plants, which will increase its production volumes to 17 million metric tonnes per annum.
For customers who have already paid for orders at the old prices, the company will review the prices downwards to N3,500 per bag in accordance with the new pricing starting from October 2, 2023. The company also urged its licensed dealers to ensure that end-users benefit from the price reduction.
According to an Abuja-based cement dealer, the reduced ex-factory price is expected to translate to a market price between N3,850 and N4,000 per bag. The reduction is seen as significant enough to benefit consumers, as long as the manufacturer and dealers uphold the new pricing regime.
Chairman of BUA Group, Abdul-Samad Rabiu, had previously stated that the company would reduce the price of cement and add two new plants by the end of the year or early next year. These new plants, once commissioned, will increase BUA Cement's total capacity to 17 million metric tonnes per annum.
Rabiu also noted that the company's aim is to support the government's efforts to reduce the price of cement. He emphasized that BUA Cement's ability to produce locally, with 80% of raw materials sourced within Nigeria, enables them to bring down the price of cement from the current levels of N5,000 or N5,500 per bag to around N3,000 to N3,500 per bag.
