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In a strategic move poised to significantly benefit consumers and reshape the competitive landscape of the cement industry, BUA Cement, under the leadership of Nigerian billionaire Abdul Samad Rabiu, has unveiled its intentions to further reduce cement prices, with the possibility of ex-factory prices falling below $4.5 per bag.
This development follows BUA Cement’s recent announcement regarding a substantial reduction in ex-factory cement prices, effective Oct. 2, 2023.
The price reduction, which slashes the cost of cement to N3,500 ($4.55) per bag, signifies a pivotal shift in the company’s pricing strategy.
Upon the completion of ongoing construction projects to expand its production capacity, BUA Cement has now reiterated its plans for another price review, scheduled for the first quarter of 2024. The company’s installed capacity is set to increase from 11 million metric tonnes per annum to 17 million metric tonnes per annum.
This forthcoming price reduction is anticipated to bring ex-factory cement prices even lower, underscoring the company’s dedication to reducing prices and passing on the benefits of increased operational efficiency to the Nigerian populace. The outcome of this review is anticipated to drive ex-factory prices even lower, below N3,500 ($4.55) per bag.
Under the leadership of Rabiu, BUA Cement has firmly established itself as Nigeria’s second-largest cement producer, boasting a total installed capacity of 11 million metric tonnes per annum. Nonetheless, it continues to trail behind Dangote Cement, which maintains an extensive production capacity of 51.55 million tonnes annually across ten countries.
Recent financial reports from BUA Cement indicate a four percent increase in profits, rising from N63.62 billion ($82.01 million) in the first half of 2022 to N61.36 billion ($79.1 million) at the close of the first half of 2023.
This resilient financial performance is attributed to a remarkable 17-percent surge in the group’s revenue, which increased from N188.56 billion ($243.1 million) in the first half of 2022 to N221.06 billion ($284.9 million) in the corresponding period of 2023.
The commitment of BUA Cement to reducing prices and enhancing its operational efficiency demonstrates its dedication to contributing positively to the cement industry and the broader Nigerian economy. This initiative is expected to have far-reaching implications for consumers and competitors.
