BUA Cement
BusinessFeaturedHighlight

Cement high prices: BUA Group fingers middlemen, competitors

212

 

 

A cement manufacturing company, the BUA Group has blamed middlemen and other manufacturers for the high cost of cement in the country.

 

The company regretted that its efforts to make the product available and affordable to Nigerians have been hampered by the unscrupulous middle men and others in the chain.

 

According to the Chairman and Chief Executive Officer of the Group, Abdul Rabiu, cement prices will only stabilize when the company increases its production volume in 2023.

 

The BUA Group chair, who disclosed this on Sunday to State House correspondents in Abuja after the group’s delegation met with President Muhammadu Buhari, explained that despite BUA Group’s increased cement production and price reduction by 10 percent per bag, the impact had not been felt.

 

Rabiu accused the middlemen and other manufacturers of frustrating their efforts.

 

He, however, disclosed that the Group is holding talks with other cement producers to reduce the price of cement in Nigeria.

 

Read Also: BP records highest profit in last eight years

 

He said: “I know everybody is talking about the high price of cement in Nigeria and that is, of course, because we do not have enough capacity. 

 

“When we started production, the fourth line in Sokoto a few weeks ago, when Mr President was there to commission the plant, we decided to actually reduce the price of cement by N350 per bag. And that is about 10 percent of the price.

 

“So today, our price is N3,000 or N3,050, but that has actually not been reflected in the market, simply because the other two producers have actually not reduced the price of cement, so we are having a challenge. We are actually in a quagmire now. 

 

“We are discussing this because what is happening is that we have reduced, but the dealers and the distributors are the ones that are actually making the money. So, it’s a bit of an issue for us.

 

“We thought that by reducing the price by N350, the other companies would probably follow suit. That has not happened. 

 

“We have seen a situation where the price of cement is still high, you know, so distributors and the dealers are making almost N800 to N1000 per bag.”

 

Rabiu declared: “That is unacceptable. Because the idea initially when we did that was that we want the situation where the end-users will benefit from the price reduction.

 

” So now we are contemplating whether probably we have to increase our price to the level of the other producers, which I think is N3,350 or N3,400.”

 

Leave a comment

Related Articles

Makinde presents staff of office to 43rd Olubadan, Tinubu, governors, Ooni, Sultan others grace occasion

Oyo State Gov. Seyi Makinde officially enthroned Oba Owolabi Olakulehin as the...

Securing financial autonomy for LGs is Tinubu’s greatest accomplishment, says Sen. Ndume

Sen. Ali Ndume, the Chief Whip of the Senate, has declared that...

Olubadan stool: At 89, Olakulehin coronated as 43rd Ibadan monarch

The 43rd traditional ruler of Ibadan, Oba Owolabi Akinloye Olakulehin, has officially...

CBN sells $122.67m to 46 authorized FX dealers

The Central Bank of Nigeria (CBN) says it has sold $122.67 million...

Corps members escape death as NYSC hostel collapses in Ekiti

A devastating incident occurred at the National Youth Service Corps (NYSC) orientation...

Just in: Pres. Tinubu names National Theatre, Lagos, after Prof. Soyinka

President Bola Tinubu on Friday named the National Theatre in Lagos after...

Just in: Buhari’s Power Minister, Mamman, gets reprieve, N10bln bail

A Federal High Court in Abuja on Friday granted bail to former...

In Niger Republic, hundreds of inmates, including Boko Haram terrorists now on the loose

A violent uprising at the Koutoukalé prison in the neighboring Niger Republic,...

ASUU gives N400,000 scholarships to two Ebonyi varsity indigent students

The Academic Staff Union of Universities (ASUU), Ebonyi State University (EBSU) chapter,...

A Word for NNPC Traducers by Solomon Daminabo

In life, it is an unwritten law that one cannot be a...

Nigeria lost N721bln to bribing public officials in 2023, says NBS

A staggering N721 billion was received as bribes by Nigerian public officials...

LG autonomy: NLC lauds S’Court judgment, Pres. Tinubu for instituting the lawsuits

The Nigeria Labour Congress (NLC) has commended President Bola Tinubu for his...

Minimum wage: Pres. Tinubu meets with VP Shettima, some governors

President Bola Tinubu is currently in a private meeting with Vice President...

Court orders trial in absentia for Ganduje, wife, others, declines bench warrants for defendants

Justice Aminu Adamu Aliyu, presiding over a Kano State High Court, has...

Updated: Ex-Power minister remanded in prison over alleged N33bn fraud

A Federal High Court in Abuja has remanded Saleh Mamman, a former...

EndSARS Crackdown: Buhari’s govt. guilty of human rights abuses, ECOWAS Court rules

The ECOWAS Court of Justice has delivered a landmark judgment, condemning the...

Tinubu hails Supreme Court’s decision on local govt. autonomy, constitutional rights

President Bola Tinubu welcomes the Supreme Court’s decision affirming the spirit, intent,...

Akpabio, Lawan spat over sitting time, prompting Senate’s emergency executive session

The Senate abruptly went into a closed-door emergency session on Thursday after...

Reps denounce arbitrary detention of journalists

Members of the House of Representatives have unanimously denounced the persistent harassment...

Breaking: Appeal Court affirms Ododo’s victory in Kogi governorship election

A three-member panel of the Abuja Appeal Court has upheld the election...