Nigerian cement giant BUA Cement PLC has announced a 10% reduction in the price of its cement product, effective October 2, 2023. The new price of 3,500 naira per bag is down from the ex-factory price of 4,650 naira.
The company said the price reduction was in line with its commitment to spur development in the “building materials and infrastructural sectors.”
The announcement comes weeks after BUA Cement chairman Abdul Samad Rabiu met with President Bola Tinubu and promised to review the price of the product.
In a statement posted on its X (formerly Twitter) page, BUA Cement said: “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.”
The price reduction is expected to be welcomed by Nigerians, who have been grappling with the rising cost of living in recent months. Cement is a key building material in Nigeria, and the price reduction is likely to boost construction activity in the country.
Nigeria is a country in West Africa with a population of over 200 million people. It is a major oil producer, but its economy has been struggling in recent years due to low oil prices and the COVID-19 pandemic.
The Nigerian naira has lost over 50% of its value against the US dollar in the past five years. This has made it more difficult for Nigerians to afford imported goods and services.
The rising cost of building materials, including cement, has been a major concern for Nigerians. The price reduction by BUA Cement is likely to be welcomed by many Nigerians, as it will make it more affordable to build and renovate homes and other structures.