BUA Cement Plc, the second-largest cement producer in the Nigerian market, has announced the reduction of the price of cement to N3,500. The company, in a Press release on Sunday, October 1, said the new price will become effective on Monday, October 2.
President Tinubu is excited about BUA Cement’s reduction of the price of cement to N3,500 per bag.
The current price of cement before the announcement is about N5,000 per bag. BUA Cement, owned by billionaire businessman Abdul Samad Rabiu, has a total combined installed capacity of 11 million mtpa.
Meanwhile, Dada Olusegun, the Special Assistant to President Bola Tinubu on Social Media|, has reacted to the development. Olusegun, who was excited by the development posted on X: “Amazing development!” We want to spur development in infrastructure sectors – BUA Cement.
Meanwhile, BUA Cement’s management said it decided to reduce the prices of cement “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,” they said. BUA cement prices to be reviewed in 2024
Meanwhile, BUA Cement said it plans to review the prices further by the first quarter of 2024. This, according to the management, will be done upon completion of the ongoing construction of its new plants which would increase its production volumes to 17 million metric tonnes per annum. Also, for all pending, undelivered orders which had been paid for at the old prices, BUA said the prices would be reviewed downwards to N3500/bag in line with the new pricing from October 2.
“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,” the statement read.