Abdul-Samad Rabiu, the Chairman of BUA Group, reiterated the company’s unwavering commitment to offer cement at the affordable rate of N3,500 starting from January 2024. This commitment was emphasized during his discussion with State House Correspondents after a meeting with President Bola Tinubu in Lagos on a Thursday.
Assuring the public of BUA Group’s dedication to ensuring accessibility and affordability of their cement products, Rabiu acknowledged the challenges faced by the company but emphasized their determination to meet the promised pricing structure. He detailed the pricing dynamics, highlighting that the base cost would be N3,500 per bag ex-factory, to which VAT would be added. The final delivered price to customers would vary based on the region, considering factors such as the distance from the manufacturing plants located in Edo and Sokoto states.
Expanding on the geographical considerations, Rabiu explained the intricacies of delivering cement to distant locations, illustrating the variances in pricing based on the distance and specific geographical locations. He underscored the company’s commitment to maintaining transparency and fulfilling their promise of providing cement at the announced rate.
Looking ahead, Rabiu shed light on the upcoming inauguration of the BUA cement plant in Sokoto, scheduled for January 2024. Anticipating a substantial increase in production volumes, he expressed confidence that the new facility, with an annual capacity of approximately six million tonnes, would significantly impact the market. Despite acknowledging existing challenges, Rabiu conveyed optimism that these issues were being addressed to ensure the success of the company’s endeavors.
It’s essential to recall that in September, the Chairman of Bua Cement Plc, Abdul Samad Rabiu, had initially announced plans to reduce the price of cement in Nigeria from the prevailing N5,500 to a range between N3,000 to N3,500. This decision was presented as part of BUA Group’s commitment to supporting the Federal Government’s efforts to lower the prices of essential commodities in the country, with the specific aim of making cement more affordable. Rabiu emphasized that this reduction would enable the company to fulfill its pledge of selling cement at around N3,500 per bag.
However, despite these intentions, a survey conducted by Infostride News earlier indicated that the market price of cement still hovered between N5,300 to N5,500 in some regions of the country. Responding to this scenario, Rabiu acknowledged the apparent discrepancy but reassured the public that BUA Group remained steadfast in its promise to provide cement at the announced price. He attributed the delay in implementing the price reduction to external challenges that the company was actively addressing.
In summary, Abdul-Samad Rabiu’s recent statements reiterate BUA Group’s commitment to delivering affordable cement to the Nigerian market, outlining the pricing structure, addressing challenges faced by the company, and offering insights into the upcoming inauguration of the Sokoto plant. The narrative highlights the complexities of the pricing dynamics influenced by geographical factors and emphasizes the company’s dedication to transparency and meeting its promises, despite external challenges causing delays in the implementation of the price reduction.
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