BREAKING: BUA reduces cement price to ₦3,500 per bag

After meeting President Tinubu at the State House in Abuja two weeks ago, the BUA Cement boss had promised to crash cement prices. BUA Group has announced a reduction of ex-factory cement price from ₦5,500 to ₦3,500 per bag. This was disclosed in a statement issued by the company on the evening of Sunday, October 1, 2023. The development comes barely two weeks after the Chairman of BUA Cement Plc., Abdul Samad Rabiu, announced the company's plan to crash cement prices shortly after an audience with President Bola Tinubu at the State House in Abuja. Samad said the proposed price crash is part of his company's contribution to support the ongoing efforts of the Federal Government to stabilise the prices of essential commodities, adding that it will take effect after the opening of two new plants of 3 million tons of operating capacity each to be commissioned at the end of the year. However, the company announced on Sunday that the plan has been brought forward as the new price will take effect from Monday, October 2, 2023. The statement said, “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. 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 17million metric tonnes per annum, BUA Cement PLC intends to review these prices further in line with our earlier pronouncements by the first quarter of 2024. “NOTE: 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. Our licensed 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.”