BUA Cement Reveals Plan To Crash Cement Price From N5,500 To N3,500

BUA Cement Reveals Plan To Crash Cement Price From N5,500 To N3,500

Abdul Samad Rabiu, the Chairman of BUA Cement Plc., has revealed plans to reduce the price of cement from N5,500 to a range of N3,000 to N3,500.

Rabiu made this announcement after a meeting with President Bola Tinubu at the State House, Abuja. He explained that this price reduction is part of his company’s commitment to support the Federal Government’s efforts in stabilizing the prices of essential goods.

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However, he clarified that this initiative will kick off after the commissioning of two new production lines, each with a capacity of 3 million tons, by the end of the year.

Rabiu stated, “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.”

He continued, “We have two new lines of 3 million tons each that we will be commissioning by the end of the year. So I explained to him that we want to support the efforts of the government in bringing down the cost of cement, by the time these lines are commissioned BUA Cement will be producing about 17 million tons per annum and with that, we intend to bring down the cost of cement from its current level of N5,000 or N5,500 per bag to maybe N3,000 to N3,500 per bag.”

Rabiu emphasized that a significant portion of the raw materials for cement production in Nigeria, approximately 80%, consists of limestone and gypsum, with energy as a contributing factor. He highlighted that Nigeria possesses abundant natural gas resources, which can be utilized in the production process.

He concluded by mentioning that the two new plants set to be inaugurated later in 2023 would substantially increase production capacity to 17 million metric tons.