BUA Cement Plc. has announced reduction in the price of cement bag in Nigeria.
The company said the price of cement will be reduced to 3000 from old price of 5,500. The new price will take effect by January 2024.
The company’s Chairman, Abdul Samad Rabiu, disclosed this while addressing Journalists after meeting with President Tinubu at the Villa on Friday.
Rabiu said the price crash is part of his company’s contribution to support the government efforts in ensuring that the price of the commodities are brought down.
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.
Rabiu said “Let me thank his excellency Mr. President for graciously receiving me today, I came to intimate his excellency on the affairs of our cement business.
“We have two new lines of 3 million tons each that we will be commissioning by the end of the year.
“So I explained to him that we want to support the efforts of the government in bringing down the cost of cement, by the time these lines are commissioned BUA Cement will be producing about 17 million tons per annum and with that, we intend to bring down the cost of cement from its current level of N5,000 or N5,500 per bag to maybe N3,000 to N3,500 per bag.”
He said the company could only do this because it is producing cement locally.
“Eighty per cent of the raw materials that we are using 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.
“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.’’
He revealed that the two new plants to be inaugurated by Tinubu later in 2023 would increase production capacity to 17 million metric tons.