BUA Cement Plc, Nigeria’s second-largest cement producer, plans to reduce the country’s cement price by 40%, from the current N5,500 to between N3,000 and N3,500 per bag.
The company’s Chairman, Abdul Samad Rabiu, disclosed this to journalists after an audience with President Bola Tinubu at the State House, Abuja.
Rabiu said the price crash is part of his company’s contribution to supporting the efforts of the Federal Government to stabilize the prices of essential commodities.
However, this would only follow the opening of two new plants of 3 million tons operating capacity each to be commissioned at the end of the year.
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The two new plants will increase BUA Cement’s production capacity to 17 million metric tons annually, making it the largest cement producer in Nigeria.
Rabiu said the company could only do this because it produces it locally.
“Eighty per cent of the raw materials we use to produce cement in Nigeria are mainly limestone and gypsum, and of course, energy is part of it. Of course, we have gas in Nigeria,” he said.
“So we want to support the government; we want to support their efforts in ensuring that the prices of these commodities are brought down incidentally.”
Rabiu revealed that the two new plants to be inaugurated by Tinubu in 2023 would increase production capacity to 17 million metric tons.
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Analysts say the planned price reduction by BUA Cement is a positive development for the Nigerian economy, as it will be more affordable for construction companies and individuals. This could lead to an increase in construction activities and boost economic growth.
The reduction is also expected to benefit consumers, making housing more affordable.
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