BUA Cement Plc. has unveiled plans to significantly reduce the price of cement in Nigeria, aiming to lower it from the current rate of N5,500 to a range between N3,000 and N3,500 per bag.
The Chairman of BUA Cement, Abdul Samad Rabiu, announced this after a meeting with President Bola Tinubu at the State House in Abuja. Rabiu stated that this price reduction initiative is part of the company’s commitment to support the Federal Government’s efforts to stabilize essential commodity prices.
However, the reduction in cement prices will only become possible following the commissioning of two new cement plants, each with a production capacity of 3 million tons, at the end of the year.
Rabiu explained, “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.”
He emphasized that BUA Cement’s ability to lower cement prices is possible because the company manufactures cement locally, with 80 percent of its raw materials sourced within Nigeria.
The upcoming inauguration of the two new plants, scheduled for later in 2023, will substantially increase the company’s production capacity to 17 million metric tons per annum.