The Chairman of BUA Cement Plc, Abdulsamad Rabiu has promised that the company’s cement prices will reduce as from January next year.
Rabiu, who gave this assurance on Thursday while fielding questions from journalists in Abuja, said the decision was part of the company’s efforts to support the government and Nigerians.
The Minister of Works, Dave Umahi, recently hinted of government’s plans on importation of cement as a way of bring down the price as the average price surged from about N4,400 per bag about two months ago to an average of N4,800 nationwide.
Commenting on the recent increase in the price of the commodity, the BUA Cement chief linked the increase majorly to the depreciating value of the Naira in the foreign exchange (FX) markets.
The industrialist said: “I understand that the minister is quite concerned, that the price of cement is high at almost N5,000 per tonne. I appreciate where the government is coming from and the frustration from all the issues in the country.
“The price of cement at N5,000 is not high. If we look at the rate of the US dollar today, to import cement will be at N5,000. The cement cost, insurance and freight to any port in Nigeria will be in the region of about $100 a tonne. So, at $100 per tonne, if you take N800 to $1 then it will be N4,000 per bag. Then the port cost, and transportation from the port.
“It’s not that the government wants to import cement, but they are frustrated that the price of cement is high. What we told our shareholders is that we will engage with the government to support the government”, Rabiu added.
He explained that with the company’s two production lines coming on stream before the end of the year, it would be in a better position to implement its plan of supporting the government to bring down the price of cement.
The BUA cement chief further clarified: “If you have the volume and you reduce your price, and with the huge volumes that we have the price must come down. So, even if others are not ready to support the government, to support the reduction of the price of cement, they will be compelled because if they don’t reduce they will not be able to sell.
“That is why we are going to wait till the end of the year when these two lines are on stream. I will discuss with the minister and see how we can do that”, Rabiu added.
