BUA Cement Plc, one of Nigeria’s leading cement producers, has announced a significant price reduction for its cement products, effective from October 2, 2023.
This decision is in line with the company’s commitment to support the development of the building materials and infrastructure sectors in the country.
The company had previously stated that it would reduce cement prices upon the completion of its new lines at the end of the year, which would increase its production capacity to 17 million metric tonnes per annum.
However, following a periodic review of its operations for efficiency, the management of BUA Cement Plc has decided to bring the price reduction forward, so that Nigerians can benefit from the lower prices sooner.
According to the announcement, BUA Cement would now be sold at an ex-factory price of 3,500 Naira per bag, which represents a significant drop from the previous price of 4,500 Naira per bag.
The company also assured its customers, stakeholders, and the public that it would further review these prices in line with its earlier pronouncements by the first quarter of 2024, when its new plants are expected to be fully operational.
The announcement also stated that all pending, undelivered orders that had been paid for at the old prices would be reviewed downwards to 3,500 Naira per bag in line with the new pricing from October 2, 2023.
The company also urged its licensed dealers to ensure that end-users benefit from this reduction in ex-factory prices and warned that it would monitor field sales to ensure compliance.
The management of BUA Cement Plc expressed its gratitude to its customers and stakeholders for their continued patronage and support and reiterated its commitment to delivering quality products and services that meet their expectations.
Ex-factory price refers to the price at which a manufacturer sells its goods to a wholesaler or distributor, excluding any taxes or transportation costs.
The statement read in part, “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.”