Abdul Samad Rabiu, the Chairman of BUA Cement Plc., has announced plans to reduce the cement price in Nigeria significantly. Currently priced at N5,500, the company aims to bring it down to between N3,000 and N3,500.
Rabiu disclosed this information after a meeting with President Bola Tinubu at the State House in Abuja.
The price reduction is part of BUA Cement’s strategy to support the Federal Government’s efforts to stabilize the prices of essential commodities. This move will only be possible after the commissioning of two new plants, each with an operating capacity of 3 million tons, by the end of the year.
Rabiu thanked the President for the meeting and elaborated on the company’s plans. He stated that once the new lines are commissioned, BUA Cement will have an annual production capacity of 17 million tons.
This increased production will enable the company to reduce cement prices.
The Chairman emphasized that the company can reduce prices because it produces cement locally. He mentioned that 80% of the raw materials, mainly limestone and gypsum, are sourced within Nigeria, along with energy from natural gas.
The announcement by Abdul Samad Rabiu to reduce cement prices is a significant development that could have far-reaching implications for the Nigerian economy. High cement prices have been a barrier to infrastructure development and housing projects.
The planned price reduction could stimulate economic growth and make housing affordable for the average Nigerian.
However, the success of this initiative depends on the timely commissioning of the new plants and the company’s ability to maintain quality while increasing production.
The government must support such private-sector initiatives that align with national objectives.
Did You Know?
- BUA Cement Plc. is one of the largest cement producers in Nigeria.
- The cement industry contributes significantly to Nigeria’s GDP.
- Cement is crucial in infrastructure development, including roads, bridges, and buildings.
- The price of cement directly impacts the cost of construction projects.
- BUA Cement’s new plants will increase the company’s annual production capacity to 17 million metric tons.