BUA Cement Plc, a cement manufacturing company, has announced that there will be a reduction in cement prices by January of next year.
The Chairman of BUA Cement, Abdul Samad Rabiu, disclosed this during a press conference in Abuja.
The company’s decision to reduce prices is in support of the government and its efforts to make cement more affordable for Nigerians.
The Minister of Works, Dave Umahi, had previously mentioned that the federal government was considering importing cement to lower its price in the country.
Explaining, he said the challenge with the exchange rate was part of the reason for the high price of the product in the country at the moment.
He 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, 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.
Earlier at the AGM, shareholders approved the proposal of the board of directors to pay the sum of N2.80 per share in 2022 compared to the N2.60 per share paid in the previous year of 2021.