Abdul Samad Rabiu, chairman of BUA Cement, revealed that plans to reduce cement prices to N3,500 were thwarted by dealers' actions, leading to sales at inflated rates. He cited naira devaluation and fuel subsidy removal as challenges, yet ensured prices remain more stable compared to last year.
Abdul Samad Rabiu, the chairman of BUA Cement, revealed that the company’s attempt to reduce cement prices from N4,500 to N3,500 per bag was hindered by the actions of cement dealers. Speaking at the firm's 8th annual general meeting in Abuja, Rabiu noted that although he announced the price reduction on September 16, 2023, the intended benefits did not reach consumers as dealers sold the cement at inflated prices ranging from N7,000 to N8,000 per bag.
Rabiu emphasized that while BUA Cement sold over a million tons of cement at a lower price, the dealers exploited the situation for profit, leading to significant markups that frustrated the company's efforts. He attributed this issue to broader economic challenges, including the devaluation of the naira and the removal of petrol subsidies, which made it difficult to sustain the lower price policy.
Despite these setbacks, Rabiu highlighted that BUA Cement continued to subsidize prices to prevent further escalation. He stated that, despite the currency devaluation and rising costs, cement remains more affordable today compared to last year, reflecting the company’s commitment to stabilizing prices in the market. Rabiu also pointed out that the energy costs, primarily denominated in dollars, continue to be a significant challenge for the industry, affecting overall production expenses.
