In a groundbreaking development for the Nigerian construction industry, BUA Cement Plc. has unveiled ambitious plans to significantly lower the price of cement. The company, under the leadership of its Chairman, Abdul Samad Rabiu, aims to bring down the current price of cement, which stands at approximately N5,500, to a more affordable range of between N3,000 and N3,500. This decision comes as part of BUA Cement’s commitment to supporting the Federal Government’s efforts to stabilize the prices of essential commodities in the country.
Mr. Rabiu made this announcement after a meeting with President Bola Tinubu at the State House in Abuja. During the meeting, he discussed the company’s strategic plans and how BUA Cement intends to play a pivotal role in making cement more accessible to Nigerians.
BUA Cement Price Reduction Strategy
BUA Cement’s plan to reduce cement prices hinges on the opening of two new cement plants, each with a capacity of 3 million tons. These plants are scheduled to be commissioned by the end of the year, signaling a significant expansion of the company’s production capabilities.
Mr. Rabiu explained, “We have two new lines of 3 million tons each that we will be commissioning by the end of the year. So, I explained to him that we want to support the efforts of the government in bringing down the cost of cement. By the time these lines are commissioned, BUA Cement will be producing about 17 million tons per annum, and with that, we intend to bring down the cost of cement from its current level of N5,000 or N5,500 per bag to maybe N3,000 to N3,500 per bag.”
He emphasized that this price reduction is made possible because BUA Cement manufactures its products locally, which minimizes the need for expensive imports. Approximately 80% of the raw materials used in cement production in Nigeria, such as limestone and gypsum, are readily available in the country. Additionally, Nigeria has access to domestic sources of energy, including natural gas, further reducing production costs.
BUA Cement Supporting Government Initiatives
Mr. Rabiu underscored BUA Cement’s commitment to supporting the government’s initiatives aimed at making essential commodities more affordable for Nigerians. By lowering cement prices, BUA Cement aligns with the government’s agenda to enhance accessibility to housing and infrastructure development, ultimately improving the quality of life for citizens.
BUA Expansion and Increased Production Capacity
To achieve this ambitious goal of reducing cement prices, BUA Cement is set to inaugurate two new cement plants later in 2023. These plants, with a combined production capacity of 6 million tons, will significantly boost the company’s output. With these expansions, BUA is poised to become a major contributor to Nigeria’s construction and infrastructure development sectors.
Conclusion
BUA Cement’s commitment to reducing cement prices in Nigeria represents a significant step forward in making construction materials more affordable for the Nigerian population. With the upcoming commissioning of two new cement plants and an increased production capacity of 17 million metric tons, BUA Cement is well-positioned to play a pivotal role in transforming Nigeria’s construction landscape. This initiative aligns with the government’s objectives and underscores BUA Cement’s dedication to contributing to the nation’s development and growth