BUA Group has announced reduction of ex-factory price of its cement to N3,500 per bag.
This is coming barely two weeks after the Chairman and Chief Executive Officer of the company, Abdul Samad Rabiu visited President Bola Tinubu at the State House and promised to crash the price of cement from N5,500 to N3,500.
The Economy recalled that Rabiu had told the President that the price crash was part of his company’s contribution to supporting the efforts of the Federal Government to stabilise the prices of essential commodities.
He had said the price reduction would only follow the opening of two new plants of three million tonnes operating capacity each to be commissioned at the end of the year.
However, in a statement dated Sunday October 1, and titled, “Reduction in prices of BUA cement,” the company indicated that it was effecting the price change earlier than planned to make Nigerians begin to buy the product at cheaper prices before the end of 2023.
BUA stated: “We refer to our pronouncement 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 N3500 per bag so that Nigerians can begin to enjoy the benefit of the price reduction before the completion of our plants.
“Upon completion of the ongoing construction of our new plant, 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 pronouncement by the first quarter of 2024.”
To ensure that the new ex-factory price impact goes down to the final consumers, the company said its agents would monitor retail prices to ensure that distributors sell the product at recommended prices. It however did not indicated retail price of the product.
“All pending undelivered orders which had been paid for at the old prices will be reviewed downward to N3500/bag in line with the new pricing from October 2, 2023. Our licenced 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 company stated.
