The government wants to use concrete for roads, which might make cement price to cost up to N9,000 per bag, from N5,000 it originally was. The Cement Producers Association of Nigeria (CPAN) warns about this. They say more people should join the cement business, and prices shouldn’t go above N5,600. In the mist of all these price modulations, BUA Cement Price Falls to N3,500 per bag.
CPAN leaders, Prince David Iweta and Chief Reagan Ufomba, praised the Minister of Works for cement roads but worry about problems if the supply chain is not managed well. CPAN suggests making roads with both cement and asphalt, giving time for contractors to get the right tools. They also say we should control how heavy trucks are on roads and make rules with other ministries about cement.
The Cement Producers Association of Nigeria (CPAN) is worried about the cement price going up. It can go to N6,000 per bag when it rains, and they think it might reach N9,000 in the dry season if the government doesn’t do something.
CPAN wants the government to finish the backward integration policy started during Yar’adua’s time. They say this can make cement available and cheap. They also want to break the monopoly and stop favoritism in the cement business.
CPAN says the government needs to have clear and consistent policies, especially since they are changing things in the oil and foreign exchange markets.They ask the government to help with foreign exchange, fix the bad loans of manufacturers, and improve the things they do to help manufacturing and reduce the need for foreign investments.
BUA Company Reduces Price of Cement to N3,500/bag
On Sunday, BUA Cement PLC announced a reduction in its ex-factory cement prices to N3,500 per bag, effective from October 2, 2023. The company made this announcement via its verified Twitter handle, now labeled as X. In a statement, BUA Cement’s management referred to their earlier intentions to lower cement prices after completing new production lines by the end of the year. This move aims to stimulate growth in the building materials and infrastructure sectors.
BUA Cement Plc has reaffirmed its commitment to lowering cement prices and enhancing operational efficiency. Effective October 2, 2023, BUA Cement has decided to expedite the price reduction, and cement will now be sold at an ex-factory price of 3,500 Naira per bag. This move allows Nigerians to experience the price reduction benefits even before the completion of our new plants.
As we continue with the construction of our new plants, which will increase our production capacity to 17 million metric tonnes per annum, BUA Cement PLC plans to further review these prices by the first quarter of 2024, in alignment with our earlier statements.
Please note that all pending and unpaid orders, which were placed at the previous prices, will be adjusted to the new rate of N3,500 per bag starting from October 2, 2023. We also encourage our authorized dealers to ensure that end-users benefit from this reduction in ex-factory prices, and we will actively monitor field sales to ensure compliance.
As Nigeria embraces the transition to concrete roads, it is plausible to anticipate that the cost of cement could potentially surge to as high as N9,000. This shift in construction materials signifies a significant transformation in the nation’s infrastructure landscape, with potential economic implications. But, with the price slash of cement by BUA company, all hope is not lost.