The management of BUA Cement says it has reduced its ex-factory price to N3,500 to spur development in the building materials and infrastructure sectors.
In a statement on Sunday, the management of the company said the new ex-factory price becomes effective from October 2.
The company said it would monitor field sales to ensure compliance among the firm’s licensed dealers.
The price adjustment follows the pledge made by Abdul Samad Rabiu, the company’s founder and chairman, on September 16 after his visit to President Bola Tinubu at the State House, Abuja.
Rabiu had promised to cut the price of cement bags from N5,500 to the range of N3,000 or N3,500 once the company increases its production capacity to 17 million metric tonnes per annum (MTPA) after completing its plants by the end of 2023.
However, in the statement, BUA Cement said it has moved the price adjustment forward after a periodic review of the company’s operations for efficiency.
“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,” BUA Cement said.
The company also said the ex-factory price will be reduced further in the first quarter of 2024 once the plants are completed, as BUA Cement would have increased its production volumes to 17 million mtpa.
Meanwhile, the reduction was extended to existing orders yet to be fulfilled by BUA Cement. The manufacturer said undelivered orders transacted with old prices will be reviewed to accommodate the price adjustment that will become effective from Monday.
BUA Cement directed its licensed dealers to ensure the price adjustment is reflected in the end-user prices.
