BUA Cement Company’s management clarified why its cement wasn’t sold at the promised ex-factory price of N3500 per bag. According to the company, despite its commitment, intermediaries and wholesalers hindered end-users from accessing the reduced price.
In October 2023, BUA Cement announced the price reduction to N3500 per bag, effective October 2, 2023, as part of its efforts to boost development in the building materials and infrastructure sectors. The company also promised to review pending orders paid at old prices to the new rate.
However, five months later, cement prices soared to N12,000 to N13,000 per bag, raising doubts about BUA Cement’s price reduction pledge. Civil rights groups threatened to picket the company for failing to implement the promised reduction.
In response, Timothy Sogbeinde of BUA Group affirmed that the company had indeed sold cement at N3500 for several months but had to discontinue due to interference from intermediaries and wholesalers.
Executive Director Kabir Rabiu stated, “We actually sold our cement for three to four months at N3,500. We thought other players in the cement industry would join us in making the price of cement affordable.” He cited intermediaries and wholesalers as barriers to maintaining the discounted price.
