Nigerian billionaire Abdul Samad Rabiu plans to crash cement prices

BUA Cement Plc, Nigeria’s second largest cement producer, intends to decrease cement prices in Nigeria from N5,500 to N3,500. Abdul Samad Rabiu, the company’s chairman, shared this decision with reporters following a meeting with Nigerian President Bola Tinubu in Abuja on Friday.

Rabiu emphasized the price reduction aligns with BUA Cement’s commitment to the government’s initiatives to stabilize commodity prices. Nevertheless, the cut would materialize only after two new facilities, each with a 3-million-tonne capacity, are operational by year’s end.

“I’m grateful to the president for today’s meeting,” Rabiu said. “I updated him on our cement operations. We’re commissioning two new 3-million-tonne lines by the end of this year. With these additions, our annual production will be around 17 million tonnes. Our goal is to decrease cement prices from the current N5,000-N5,500 per bag to N3,000-N3,500.”

Rabiu noted that 80 percent of their cement production materials, mainly limestone and gypsum, are sourced locally, including energy from Nigerian gas resources. He expressed the company’s eagerness to support the government in ensuring commodity prices are more affordable. The billionaire also revealed that BUA has almost completed construction work on two new plants which will increase output capacity to 17 million metric tonnes. The plants will be launched by Tinubu either in December 2023 or in January 2024.

Rabiu, Nigeria’s second richest man, has a fortune estimated at $6.3 billion according to Forbes Magazine.