BUA, one of the leading cement producers in the country, claimed it had reduced the price of cement but the product still sells at a high price in the market, WikkiTimes can report.
The company had on October 1, announced a reduction of ex-factory cement price to N3,500 per 50kg bag from N4,650.
“The management of BUA Cement Plc wishes to announce and inform our esteemed customers, stakeholders, and the public that effective October 2, 2023, we have decided to bring the price reduction forward. As a result, BUA Cement would now be sold at an ex-factory price of 3,500 Naira per bag so that Nigerians can begin to enjoy the benefits of the price reduction before the completion of our plants.
“Upon completion of the ongoing construction of our new plants, which would increase our production volumes to 17 million metric tons per annum, BUA Cement PLC intends to review these prices further in line with our earlier pronouncements by the first quarter of 2024,” BUA said in a statement.
NO CHANGE IN PRICE IN BAUCHI, NIGER AND KANO
WikkiTimes gathered from retailers in Bauchi, Niger and Kano states that the price of BUA cement has not been reduced. They still sell the product between N4,500 and N5,000.
In Kano, it sells between N4,900 and N5,000. A cement retail seller at Rijiyar Zaki, Abubakar Jazuli, explained that he is yet to get supply at the reduced price hence he maintains the old price.
“I heard in the news that BUA reduced the price of their cement,” he told WikkiTimes. “So I am waiting to have it at the new price and sell it at a new price but what I have is not a new price.”
Another retailer, Muktar Abdullahi said it will be difficult for him to sell at the new price because their suppliers are yet to effect the new changes.
“Until we get it at the new price we cannot sell at a loss now. We hope we will get it cheaper and sell it cheaper too,” he said.
Abubakar Saleh who bought a bag of cement averred that he was optimistic when the reduction was announced but was disappointed when he could not find where to purchase at the reduced price.
“I have checked more than five places to buy cement at N3500 or something closer but I didn’t find one. I just bought it at the old price of 4900,” he told WikkiTimes.
“Honestly, no one is selling BUA Cement at the reduced price of 3500 in Kano that I know. I have never seen a single shop or dealer that sells at the new price,” Murtala Aliyu Dorayi, another Kano resident said.
He added: “Along Zaria Road, you will see BUA trucks with cement. The same thing along the new site but they are yet to offload the cement. The dealers are yet to finalise talks with them over the recent development. And that is what is stopping us from getting work because everybody is talking about new price but the marketers say they don’t have it at the new price. I couldn’t get any serious work since the announcement of the new price. Currently, it is sold for N5,000 or N4,900 depending on the supplier or location.”
When WikkiTimes reached out to major dealers of BUA Cement in Kano, they declined to make any comment on the new pricing of the product.
In Niger State, our reporter gathered that the product sells for N4,500. Findings, however, showed that the price of Dangote Cement has reduced from N5,700 to N4,700.
Emeka Igwe, a retailer in Lapai town told WikkiTimes he still sells a bag of BUA cement at N4,500.
He said BUA and Dangote are now the same prices. “The difference is just N100,” he noted.
Similarly, BUA cement is being sold at N4,700 in Bauchi State. A retailer along Central Market who does not want his name in the print said: “We still sell cement at the rate of N4,700 because we are yet to receive the discount made by the BUA management. Even though the discount has been made, it may just favour the dealers, not we retailers.
At press time, an email sent to BUA Cement had not been responded to.