BUA Moves To Crash Cement Price, Eyes N3,500 Per Bag
Strong indications have emerged that Nigerians may soon buy cement at a reduced rate for their construction projects across the country by the end of this year.
The Chairman, BUA Group, Abdul-Samad Rabiu, who dropped the hints on Friday, said the company is already eyeing an additional two new plants at the end of the year or early next year as part of its contribution to support government efforts at crashing the market value of the product.
Addressing State House correspondents after meeting with President Bola Ahmed Tinubu at the Aso Rock Presidential Villa in Abuja, Rabiu said the plants to be commissioned by the President would bring BUA Cement’s total capacity to 17 million metric tons, adding that the development would strengthen the company’s resolve to reduce the price of cement to about 3500 Naira per bag.
According to the business mogul; “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.
“So, I came to intimate His Excellency and also to explain to him the efforts we’re making in trying to support the efforts of the government in bringing down the price of cement with this six (6) million tonnes that we are commissioning by the end of the year. And by the way, His Excellency has agreed to come and commission the plants, sometime in December or early January next year.”
Offering further insight on his engagement with Mr President, the BUA Chairman said; “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 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 percent of the raw materials that we’re using to produce cement are in Nigeria. We want to support the government’s efforts in ensuring that the prices of these commodities are brought down.”
On other steps that would be taken to keep his promise, Rabiu said; “Incidentally, I also saw the Honorable Minister of Works, Senator David Umahi, when I was the with His Excellency, Mr. President, and we agreed to meet. So, what we’re going to do is that by the time we commission these two lines, we will announce to Nigerians that the price of cement is going to come down.”
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