BUA Cement maintains its prices at N5,300 to N5,500 despite the price reduction.

Despite the assurance of a price reduction, the cost of BUA Cement has not seen a significant change and continues to retail at the old price range of between N5,300 and N5,500 in Lagos, as per findings by Infostride News.

The announcement of the price reduction was made by Abdul Samad Rabiu, the Group Chairman of BUA Cement Plc. This announcement came following a meeting with President Bola Tinubu at the State House, Abuja, on September 15, 2023.

Despite the expected implementation date being one week ago, the revised price has yet to be realized, with various cement retailers and distributors reporting that the price has remained the same.

Infostride News conducted a market survey involving 17 cement retail stores in the Ikorodu region of Lagos, all of which confirmed that BUA Cement is still available at the previous price range of N5,300 to N5,500 per bag.

Retailer Perspectives
When inquiring why the current retail price of BUA Cement does not align with the manufacturer’s announcement, cement retailers cited the fact that the costs associated with raw materials and production have not significantly changed, making a substantial reduction in price untenable.

A cement vendor located in Parafa, Ikorodu, stated that despite hearing about the price reduction, the cost from distributors has remained unaltered. He noted that the reduced price of N3,500 per bag was likely applicable to sales at the cement factory in Okpella, Edo State. The logistics costs associated with transporting the product to Lagos, along with other expenses, push the price higher for retailers.

The retailer sells BUA Cement at N5,400 and mentioned that BUA Cement faces tough competition in Lagos compared to other brands like Dangote and Elephant Cement.

Another retailer, whose depot is situated next to Taramed Filling Station in Ikorodu, explained that the distributor’s prices have not changed, which has led to the retailers acquiring the cement at the old price range of N5,300 to N5,500.

She pointed out that the reduced-price stock is insufficient to meet the demand for the product, and the delay in obtaining cement stock has contributed to the retail price remaining unchanged.

Furthermore, the same retailer raised the possibility that the price reduction announcement might be more about optics and public perception than actual price reduction. She suggested that BUA might be using the announcement to gain favor with the public, even if the price remains the same.

She emphasized that since the announcement of the price reduction, there has been increased interest in BUA Cement. However, potential buyers are disappointed when they discover that the price has not changed.

The third cement dealer, situated in Marvelous Estate on Itokum Road, highlighted that BUA Cement experiences lower patronage during the rainy season due to its longer consolidation time when used in brickmaking. During the rainy season, people tend to prefer alternative products.

Key Takeaways
BUA Cement Plc had initially announced a reduction in the price of its cement to N3,500 per bag, effective from October 2, 2023. This was made known through a press release on the company’s official platform.

In the press statement, BUA Cement cited its commitment to reducing prices and spurring development in the building materials and infrastructure sectors. However, prices in the retail market do not seem to reflect the company’s announcement even a week after the statement.

As of now, Infostride News has made attempts to seek clarification from BUA Cement Plc via email but has not received any response or comments from the company regarding the deviation from the initially announced N3,500 retail price.