AbdulSamad Rabiu, the Chairman of BUA Cement, has disclosed that the company’s efforts to reduce cement prices to ₦3,500 per bag last year were frustrated by cement dealers. Speaking at BUA Cement’s 8th Annual General Meeting in Abuja, Rabiu expressed his disappointment over the failure to pass on the intended savings to consumers.
Rabiu revealed that BUA Cement had sold over a million tons of cement to dealers at the reduced price, with the expectation that they would sell it to end-users at the same rate. However, the dealers instead sold the cement at prices between ₦7,000 and ₦8,000 per bag, taking advantage of the pricing policy and making substantial profits.
The company eventually had to abandon the initiative, as external factors like the devaluation of the naira and the removal of fuel subsidies made it unsustainable. Rabiu emphasized that BUA Cement’s goal was to make cement more affordable for Nigerians, but the company could not control market prices once the product left its control.
Despite the challenges, Rabiu assured that BUA Cement remains committed to finding ways to keep cement prices manageable, even as energy costs, denominated in dollars, continue to rise.
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