Abdul-Samad Rabiu, the Chairman of BUA Group, has unveiled plans to significantly reduce the price of cement in Nigeria. He made this announcement during a meeting with President Bola Tinubu, emphasizing his company's commitment to lower the price of cement from the current N5,500 to a range between N3,000 and N3,500.
This price reduction initiative is part of BUA Group's contribution to supporting the Federal Government's efforts to stabilize essential commodity prices in the country. However, the price reduction will be realized upon the commissioning of two new cement plants, each with an operating capacity of 3 million tons, scheduled to be opened by the end of the year.
Rabiu expressed his gratitude to President Tinubu for the opportunity to discuss his company's cement business and explained the strategy behind this price reduction. He revealed that once these new production lines are operational, BUA Cement will have a remarkable annual production capacity of about 17 million tons. This increased capacity will enable them to bring down the cost of cement significantly, potentially from the current N5,000 to N5,500 per bag to a more affordable range of N3,000 to N3,500 per bag.
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The Chairman highlighted that BUA Group's ability to implement this price reduction is attributed to the local production of cement. The majority of the raw materials, approximately 80%, used in cement production in Nigeria, such as limestone and gypsum, are readily available within the country. Furthermore, Nigeria has a domestic supply of energy resources like gas, which further contributes to the feasibility of this initiative.
Rabiu stressed his company's commitment to supporting the government's efforts to make essential commodities more affordable for the Nigerian population. He also noted that the inauguration of the two new cement plants in 2023, to be conducted by President Tinubu, will significantly boost their production capacity to 17 million metric tons, further solidifying their contribution to the nation's construction industry and economy.
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