Dangote Cement Biggest Rival Hints on New Bag of Cement Price, Gives Reasons
- Abdul Samad Rabiu, chairman of BUA Group, has renewed the hope of Nigerians in the reduction in cement prices
- The billionaire cited the recovery of the naira and also its company product to increase production
- BUA is the second largest cement producer in Nigeria after Dangote Cement and is working to expand its operation
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Prices of cement in Nigeria may soon be reduced, according to Abdul Samad Rabiu, founder and chairman of BUA Group.
Source: Getty Images
However, the second richest man noted that the current cement price in Nigeria is more favourable than in other African countries.
Conditions for new cement price
Rabiu, who spoke during a strategic business partnership agreement and celebrated a 12-year partnership between BUA Group and CBMI of China, noted that with a strengthened naira, prices could decrease further.
He also revealed that the BUA is working towards this goal by adding a fourth production line to its Edo State factory.
The new production line, the fourth in Edo and the eighth overall aims to meet increasing domestic and export demands.
The Nation reports that the BUA chairman also reiterated BUA’s commitment to maintaining its position as Nigeria’s second-largest cement producer and contributing to the country’s industrialisation.
“This fourth line will produce three million tons per annum, with groundbreaking scheduled in the next few days, possibly on Saturday or Sunday,” Rabiu said. “The new contract to build another line has been signed and will be completed in less than 20 months. We are thrilled and excited about this cooperation with CBMI.”
Rabiu also discussed expanding export opportunities, highlighting the strategic position of BUA’s Sokoto plant for exports to the Niger Republic and Burkina Faso, which has been pivotal in the company’s regional trade strategy.
States with the lowest cement prices
Earlier, Legit.ng reported that during the federal government’s meeting with major cement producers, Nigerians were still unhappy about the high cost of cement.
At the meeting, the cement producers agreed to reduce prices to N7,000 to N8,000 per bag.
Despite government intervention, checks show that most retailers in Lagos and Ogun States sell bags at N10,500 and N14,000.
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Source: Legit.ng
