The Chairman of BUA Cement Plc, AbdulSamad Rabiu, expressed confidence that a drop in cement prices would result from the completion of the company’s two new factories by the end of the year.
This was said by Rabiu during a press conference that was held alongside the company’s seventh annual general meeting on Thursday in Abuja.
In a recent statement, the Minister of Works, Dave Umahi, expressed his intention to engage in a constructive dialogue with cement makers in order to address the issue of high product costs.
Contractors had complained about the high cost of cement in the nation, according to the minister, who spoke on the Channels Television programme Sunrise Daily. He also claimed that importing the commodity will make it less expensive.
“I’m going to be running figures with them (cement manufacturers) to check the cost of cement if we import it and the cost they are giving us here,” he said.
The company is now expanding its production capacity, according to the chairman of BUA Cement, who noted that once that is accomplished by the end of this year, it will increase product availability and lower pricing.
Rabiu 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, to 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”.
He revealed that the two plants are the Obu Line 3 and the Sokoto Line 5, giving the business a six million tonne combined capacity.
The BUA chairman also said that the business would aid the Federal Government’s initiatives to lower the cost of cement in the nation.
