Dealers Ignore BUA Price Review, Sell Cement for N5,000
Many cement marketers and dealers across the country are yet to comply with the directive of BUA Group slashing the price of its cement, Economic Confidential gathered.
The company recently announced a reduction of its cement price to N3,500 per bag.
The new price regime took effect from Monday, October 2, 2023.
Economic Confidential learnt that the ex-factory price of BUA cement was N4,650, while it was sold at N5,000 in the market.
The statement by the BUA Group, titled ‘Reduce in Prices of BUA Cement’, reads: “We refer to our previous pronouncements regarding our intent to reduce cement prices upon the completion of our new lines at the end of the year, in order to spur development in the building materials and infrastructure sectors.
“As per the commitment made to reduce prices and following a periodic review of our operations for efficiency, 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 N3,500 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 17million 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.
“NOTE: all pending, undelivered orders which had been paid for at the old prices will be reviewed downwards to N3500/bag in line with the new pricing from October 2, 2023. Our licensed dealers are also enjoined to ensure that end-users benefit from this reduction in ex-factory prices as we will monitor field sales to ensure compliance.”
With the crash to N3,500, the market price was expected to be between N3,850 and N4,000.
But checks by Economic Confidential across some markets where cements are being sold and chats with some buyers indicate that very few BUA cement dealers and marketers have adjusted to the new market price, reviewed by the BUA Group.
“The new price regime is yet to come to effect. I am not sure any marketer or dealer has complied with the announcement made by BUA. Most BUA cement sellers, still sell their old stocks for N5,000 per bag,” said one BUA dealer.
