BUA Cement, a major player in the construction industry, has announced a significant reduction in its ex-factory price for cement to N3,500.
The price adjustment, effective from October 2nd, 2023, aims to stimulate growth in the building materials and infrastructure sectors.
Price cut to N3,500
The company has pledged to closely monitor field sales to ensure that its licensed dealers adhere to the new pricing structure.
This move follows a commitment made by Abdul Samad Rabiu, the founder and chairman of BUA Cement, on September 16th.
After a meeting with President Bola Tinubu at the State House in Abuja, Rabiu had promised to reduce the cost of cement bags from N5,500 to a range between N3,000 and N3,500.
This price reduction was contingent on the company increasing its production capacity to 17 million metric tonnes per annum (MTPA) upon the completion of its plants by the end of 2023.
However, BUA Cement announced that it is advancing the price adjustment after conducting a periodic review of its operations to enhance efficiency.
In a statement, BUA Cement explained, “As a result, BUA Cement would now be sold at an ex-factory price of 3,500 Naira per bag so that Nigerians can begin to enjoy the benefits of the price reduction before the completion of our plants.”
The company further noted that it intends to reduce the ex-factory price even further in the first quarter of 2024 once its production volumes reach 17 million MTPA upon the completion of its planned plants.
Importantly, this price reduction extends to existing orders that have not yet been fulfilled by BUA Cement.
The manufacturer assured that undelivered orders made at the previous prices will be reviewed to accommodate the new pricing, effective from Monday.
BUA Cement has directed its licensed dealers to ensure that the price adjustment is reflected in the end-user prices, providing potential benefits to consumers and the construction industry as a whole.