BUA Cement’s Bold Move
BUA Cement’s bold move and the recent announcement of a substantial price cut from N5,500 to N3,500 had builders and industry players eagerly anticipating more affordable construction materials. The move, following a meeting between the company’s chairman, Abdul Samad Rabiu, and President Bola Tinubu, aimed to boost the building materials, housing, and infrastructure sectors in Nigeria.
Price Cut Promises Affordable Housing
Builders and housing sector operators welcomed BUA Cement’s decision, hailing it as a courageous step towards addressing the rising costs of construction materials. The move was seen as an opportunity to increase affordability and provide greater access to housing for low-income earners across the country.
Market Reality: The Price Cut Delay
Despite the promising announcement, a survey conducted in various markets across Lagos, Abuja, Port Harcourt, and Benin City reveals that BUA Cement’s price cut is yet to materialize in the market. Many dealers still sell the cement at the old price of N5,600, leaving builders and consumers eager for the promised reduction.
Dealers Share Their Perspective
Dealers in Lagos, including Adeniji Adele, Ketu, Ikotun-Egbe, and Suru Alaba, confirmed that the price cut had not reached their shelves. Some dealers cited logistical challenges, such as transportation costs and the high price of diesel, as factors that prevented them from selling at the new reduced price.
In Abuja, major distributors like Monday Okafor reported that both BUA and Dangote brands were available but still sold at the previous prices.
The Situation in Port Harcourt and Benin City
In Port Harcourt, some distributors didn’t even have the product in stock, while in Benin City, dealers like Osagie Imafidon and Aminu Mohammed revealed that the price of BUA Cement remained between N4,300 and N4,500, and they were yet to receive new stock.
BUA Cement’s Expansion Plans
As Nigeria’s second-largest cement company, BUA Cement has big plans for expansion. Currently boasting an installed capacity of 11 million metric tonnes per annum, the company aims to increase this to 17 million metric tonnes per annum by early 2024 with the completion of new plants in Edo and Sokoto.
Promised Price Review
Despite the initial delay in implementing the price cut, BUA Cement remains committed to its promise. Upon completing the new plant constructions, the company intends to review prices further by the first quarter of 2024.
Conclusion: Awaiting the Promised Affordability
BUA Cement’s Bold Move: While builders and consumers eagerly await the price cut’s full effect, BUA Cement’s move to make construction materials more affordable continues to be a ray of hope for the Nigerian housing and construction industry. The delay in price reduction highlights the challenges faced by dealers, but the promise of lower costs remains on the horizon, offering the potential for greater access to affordable housing for all. Source and visit thedailycourierng for more news