Chairman of BUA Cement Plc., Abdul Samad Rabiu, has announced plans to reduce the price of cement N5,500 to between N3,000 and N3,500.
Rabiu disclosed this to Journalists after a meeting with President Bola Tinubu at the State House, Abuja.
He said the price crash is part of his company’s contribution to supporting the efforts of the Federal Government to stabilise the prices of essential commodities.
He however stated that this would kick start after the commissioning of two new lines of 3 million tons each by the end of the year.
Rabiu said: “Let me thank his excellency Mr. President for graciously receiving me today, I came to intimate his excellency on the affairs of our cement business.
“We have two new lines of 3 million tons each that we will be commissioning by the end of the year.
“So I explained to him that we want to support the efforts of the government in bringing down the cost of cement, by the time these lines are commissioned BUA Cement will be producing about 17 million tons per annum and with that, we intend to bring down the cost of cement from its current level of N5,000 or N5,500 per bag to maybe N3,000 to N3,500 per bag.
“Eighty per cent of the raw materials that we are using to produce cement in Nigeria are mainly limestone and gypsum and of course, energy is part of it. Of course, we have gas in Nigeria.
“So we want to support the government, we want to support their efforts in ensuring that the prices of these commodities are brought down incidentally.’’
He said the two new plants to be inaugurated by Tinubu later in 2023 would increase production capacity to 17 million metric tons.