BUA Group Cuts Cement Price to N3,500 per bag from Monday

BUA Cement Plc has announced a significant reduction in the price of its cement product, with effect from Monday, October 2, 2023. The new price will be set at N3,500 per bag, down from its previous price of N4,650.

This price reduction comes after BUA Cement’s Chairman, Abdul Samad Rabiu, held discussions with President Bola Tinubu and committed to reviewing the product’s pricing. BUA Cement stated that this decision aligns with its mission to support development in the building materials and infrastructure sectors.

The move is expected to have a positive impact on the construction industry and make cement more affordable for builders and developers. Previously, cement was being sold on the market for as high as N5,000 per bag.

The statement released by the company 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.”

Construction industry stakeholders raised alarm over the high of cost cement in the country. Recently, the Minister of Works and Housing, Dave Umahi, claimed that it’s cheaper to import cement than buy from local manufacturers – mainly – Bua and Dangote cement.

The statement triggered a national discussion around the impact of the high cost of cement in construction in the country.

Against this backdrop, Abdul-Samad Rabiu, Chairman of BUA Group, indicated his company’s intention to reduce cement prices during a visit to President Bola Tinubu at Aso Rock last month. In line with this commitment, BUA Cement has now officially announced the price reduction to N3,500 per bag.

In addition, the company said any outstanding and paid-for orders at the previous prices will be adjusted to the new pricing of N3,500 per bag. This move is aimed at making cement more affordable and supporting development in the construction and infrastructure sectors.

The market price is expected to be between N3,850 and N4,000 following the drop.

It is not clear if this move will force the market’s major competitor, Dangote Cement, to also cut down prices. Dangote’s cement sells from N5,000 to N5,300 per bag.