Abdul Samad Rabiu, Chairman of BUA Cement, has suggested that the price of cement should be around N10,000 per bag, considering the significant devaluation of the naira. He made this statement at the company’s 8th annual general meeting in Abuja.
Rabiu noted that the current market price of cement, approximately N6,000 per bag, is lower than what it could have been if the full impact of the naira devaluation were passed on to consumers. He emphasized that the company had initially aimed to reduce the price of cement from N4,500 to N3,500 per bag last year to support the federal government’s initiative to ease the financial burden on Nigerians.
However, this move was undermined by cement dealers selling the product at much higher prices, ranging from N7,000 to N8,000 per bag, and reaping substantial profits at the expense of consumers. The policy became unsustainable due to the naira’s devaluation and the removal of the petrol subsidy, which increased operational costs.
BUA Cement had sold over a million tons of cement at the reduced price of N3,500 per bag before realizing that dealers were not passing these savings on to consumers. Rabiu highlighted the need for a price adjustment to reflect the current economic reality, suggesting that N10,000 per bag is a more realistic price point considering the exchange rate and operational costs.
