AbdulSamad Rabiu, the Chairman of BUA Cement Plc, expressed optimism about a forthcoming reduction in cement prices with the completion of two new factories by the end of the year. Rabiu shared this outlook during an interview at the company’s seventh Annual General Meeting in Abuja.
Thank you for reading this post, don't forget to subscribe!The two factories in question are Obu Line 3 and Sokoto Line 5, which, when operational, will boost the company’s total production capacity to six million tonnes.
Rabiu also affirmed BUA’s commitment to supporting the Federal Government’s efforts to bring down cement prices nationwide.
In response to concerns raised by the Minister of Works, Dave Umahi, regarding the high cost of cement, Rabiu acknowledged the government’s concerns. However, he emphasized that the current price of approximately N5,000 per tonne is justified when considering the exchange rate of the US dollar.
He pointed out that importing cement would cost around $100 per tonne, equivalent to N4,000 per bag when converted to Naira. This cost includes factors such as cement, insurance, freight, port charges, and transportation.
Rabiu highlighted that BUA Cement is actively expanding its production capacity, which, upon completion later in the year, will help increase product availability and potentially contribute to lower cement prices.
