In a significant move aimed at benefiting consumers and supporting the nation’s economic initiatives, BUA Cement Plc has disclosed its intentions to substantially reduce the price of cement in Nigeria. The anticipated price cut will see a decrease from the prevailing rate of N5,500 per bag to a more affordable range of N3,000 to N3,500.
Highlights
- BUA Cement Plc plans to cut the price of cement from N5,500 to N3,000-N3,500 per bag.
- The decision supports the Federal Government’s objective to stabilize prices of essential commodities.
- Two new plants with a combined capacity of 6 million tons will be commissioned by the end of the year.
- The production boost will elevate BUA Cement’s annual output to 17 million tons.
Abdul Samad Rabiu, Chairman of BUA Cement Plc, relayed this groundbreaking information to the press after a consequential meeting with President Bola Tinubu at the State House, located in Nigeria’s capital, Abuja.
Elucidating the rationale behind this planned reduction, Rabiu emphasized BUA Cement’s commitment to the Federal Government’s overarching strategy aimed at stabilizing the prices of fundamental commodities in the country. The implementation of this price cut, however, is pegged to the upcoming commissioning of two brand-new production plants. These plants, with a combined capacity to produce an impressive 6 million tons, are expected to be fully operational by the conclusion of the year.
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Describing the purpose of his visit and subsequent discussions with President Tinubu, Rabiu remarked, “I had the privilege of briefing his excellency on the advancements and plans associated with our esteemed cement company. Our president’s gracious reception and keen interest in our initiatives were truly commendable.”
He elaborated further on the company’s upcoming production milestones, “By year’s end, two state-of-the-art production lines, each boasting a capacity of 3 million tons, will be launched. The purpose of our expansion and investments is clear: We are steadfast in our mission to bolster the government’s endeavors by making cement more accessible and affordable for our fellow Nigerians. Post the activation of these production lines, BUA Cement’s annual production capacity will surge to 17 million tons. This capacity enhancement will naturally pave the way for the intended price reduction.”
One of the pivotal factors enabling BUA Cement Plc to consider such a substantial price reduction is its status as a local cement producer. Rabiu shed light on this advantage, stating, “A staggering 80% of the raw materials utilized in our cement production, namely limestone and gypsum, are sourced right here in Nigeria. Not to mention, we also have access to the vital energy component – gas. Thus, our local production ecosystem positions us favorably to support the government’s vision of economic stabilization.”
In a concluding note, Rabiu revealed that President Tinubu will personally preside over the inauguration ceremony of the two new plants later in 2023. These plants are not just monumental in terms of their contribution to increasing BUA Cement’s production capacity but are also symbolic of the company’s unwavering commitment to Nigeria’s economic fortitude.