BUA Cement Plc., one of the leading cement producers in Nigeria, has announced its intention to reduce the price of cement from N5,500 to between N3,000 and N3,500 per bag.
This is a significant move that will make cement more affordable for Nigerians and boost the construction sector.
The Chairman of BUA Cement, Abdul Samad Rabiu, revealed this plan after meeting with President Bola Tinubu at the State House, Abuja. He said the price reduction is part of his company’s contribution to supporting the efforts of the Federal Government to stabilise the prices of essential commodities in the country.
Rabiu explained that the price cut would be possible after the commissioning of two new lines of 3 million tons each by the end of the year.
These new lines will increase BUA Cement’s production capacity to 17 million metric tons per annum, making it one of the largest cement producers in Africa.
He said: “I came to intimate his excellency Mr. President on the affairs of our cement business. 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.
“Most of the raw materials that we use to produce cement in Nigeria are mainly limestone and gypsum and of course, energy is part of it. Fortunately, we have gas in Nigeria.
“So we want to support the government, we want to support their efforts in ensuring that the prices of these commodities are brought down.”
He added that the two new plants will be inaugurated by Tinubu later in 2023. He also expressed his appreciation to President Tinubu for his support and guidance.