BUA Slashes Cement Price To N3500 Per Bag

From Monday 2nd October, 2023, Nigerians would buy a bag of BUA Cement for N3,500 from the N5,700 that it was previously sold for.  A statement signed by the management of the company Sunday, the reduction in price is keeping with its promise of bringing down the price of the commodity when it completes its production line.  BUA Chairman Samad Rabiu, at the company’s Annual General Meeting has told journalists that Nigeria would see a reduction in the price of cement by January when its production line is complete.  However, the reduction in price is coming few months earlier that the BUA Cement Chairman 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 operations for efficiency, the management of BUA Cement Plc wishes to announce to 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, tends to review these prices further in line with our earlier pronouncement by the first quarter of 2024. “All pending, undelivered orders which had been paid for at the old price will be reviewed downwards to N3500/bag in line with the new pricing fro October 2, 2023. Our licensed dealers are also enjoined to ensure that end-use benefit from this reduction in ex-factory prices as we will monitor field sales to ensure compliance,” the statement read. 

Cement Price Won’t Hit N9000; Road Contractors Always Inflating Contracts, Says Umahi

The Minister of Works, Senator Dave Umahi has debunked claims by Cement manufacturers that the price would hit N9,000 if the government starts constructing concrete roads. According to the minister, the claims were all campaigned against him by the cabals in the construction industry. Umahi, who made the remarks during a meeting with contractors handling federal roads, expressed dismay at how contractors cheat Nigerians in the materials they use to construct roads in the country. He lamented that roads that are currently constructed in the country would not last for seven years after they are completed. The minister said the contractors have been in the habit of increasing the cost of their projects to swindle the country through contract variation and the use of asphalt materials, which are subject to the international price of crude oil. He added that he has stopped the signing of the funds to be released to contracts who are seeking price variation of their contracts, and bemoaned the pains Nigerians face while traveling on federal roads saying he had to feel their pains when he traveled to Edo state from Abuja. “There is no project being constructed right now in Nigeria that is going to last for seven years. The question is, are we going to be maintaining or reconstructing our roads every 10 years? That is what we have been doing. I traveled from Abuja to Benin City through Lokoja, all the stretches of the road are on contract, ongoing; this is through the policy of the last administration but how much of the roads are motorable? “I traveled through the roads myself and I shed tears for the kind of pain our people are going through. I spent 14 hours on the road having started my journey from 10am and got to Benin City at 2 pm the next day. I was very happy I experienced the pain. “President Tinubu said I must travel through all the projects so that I will brief him on my experience and tell him the truth.” He added that he is doing his work with the fear of God as he is representing the people and I receive instructions from the President.

Concrete Road Will Drive Cement Price To N9000 —Manufacturers

Cement manufacturers under the umbrella of the Cement Producers Association of Nigeria have warned that the price of the product may further rise following plans by the federal government to introduce the use of concrete for road construction. Fielding questions from journalists at its AGM, the Chairman of BUA group owners of Bua Cement said cement prices will drop from N5000 to N3500 by January 2024 when its new plants finally begin operation. The Minister of Works Dave Umahi since his appointment has been an advocate of the use of concrete for road construction, as according to him, it lasts longer than roads constructed with asphalt. In a statement jointly signed by PrinceDavid Iweta and ChiefReagan Ufomba, the National Chairman and National Secretary respectively, the Association warned that the price of cement may rise to as N9000 from the present ₦5000. However, the Cement manufacturers warned that there would be dire consequences if the supply end is not addressed properly, noting that if it is not addressed the price of cement would not come down. The Association therefore called on the government to emphasise road designs that allow both cement technology and asphalt pavement to run concurrently. “Our findings from various parts of the country show that cement sells for as high as N6000 per bag in the rainy season. Our prediction is that it will sell for over N9,000 per bag in the dry season, especially with the pronouncement of the Honourable Minister of Works on cement technology and the marching order on housing by Mr President if the government does not take proactive steps. “While we commend the Honourable Minister’s position on cement-made roads, we warn of the dire consequences if the supply end is not properly addressed. In fact, it would amount to dereliction of duty not to intervene. And the time is now. To do otherwise is to continue in a worsening pipe dream that prices would suddenly drop on this essential input that will continue to drain the purse of Nigerians, render them homeless, encourage chaos between demand and supply, and worsen the infrastructure deficit it sets out to cure, and lead to an unprecedented price hike. “We also call on the Honourable Minister of Works to lay more emphasis on the design criteria of roads that allow both cement technology and Asphalt pavement to run concurrently, in turn, will provide ample time for a smooth transition that allows contractors to invest in commensurate and requisite equipment and retooling. We must also as a nation regulate static and dynamic load traffic by introducing weighbridges at access points on our highways.” While urging the present administration to conclude the backward integration policy started by late President Yar’adua administration, the Cement manufacturers noted that availability and affordability of the product cannot be achieved if the government fails to break the chain of monopoly and favouritisms. It, therefore, called on President Bola Tinubu’s government to permanently solve this perennial cement price hike problem by expanding participation in the sector with companies who have verifiable evidence of local investment, including greenfield licenses and quarrying.