Some cement retailers in Lagos state and Ogun state have given reasons BUA Cement products are still sold above N5,000 per bag despite the company announcing a 36.4 percent cut in price on October 1.

BUA Cement had disclosed that the ex-factory price of its product will be reduced to N3,500 per bag from N5,500 – starting from October 2.

The company made the decision after Abdul Samad Rabiu, BUA Cement founder, met with President Bola Tinubu on September 16.

BUA Cement said its ongoing effort to increase production capacity to 17 million metric tonnes per annum (MTPA) before the end of 2023 made it possible for the company to reduce its ex-factory price for licenced dealers and end users.

However, three weeks later, the price of BUA’s cement has remained above N5,000 in some retail stores in Lagos and Ogun state.

Speaking to Olubukola Oluwadare, a cement retailer in an area in Ikorodu, Lagos, she said BUA sells the cement at N3,500 at its factory in Benin, however, retailers will have to visit the production site to buy the product at that price.

According to Oluwadare, BUA Cement representative said the company does not have enough trucks to distribute its products, so retailers have to hire trucks to load the cement.

Oluwadare told TheCable that she partnered with another retailer to hire a truck, but the cost – N1,000 per bag – discouraged them, so she sells only the Dangote brand.

She said BUA does not have enough lorries, “what they do is within their vicinity there. He even said if I have Dangote vehicle, that some of them are using it to bring their own down to here (Ikorodu)”.

According to Oluwadare, engaging a truck that belongs to Dangote Cement to load BUA’s products could create an issue.

Oluwadare, who was not comfortable with the suggestion, said hiring a truck meant she would bear the cost of the driver and the offloaders but “when we calculated all the money from that place to here, it is almost N5,050”.

Another retailer in Ikorodu, who spoke on condition of anonymity, corroborated Oluwadare’s statement on purchasing the product directly from BUA’s factory to get it at N3,500.

He said: “Transportation alone has covered the whole (discount), you will have to increase your money (price) to like N5,000 or so.”

The retailer said Elephant brands cost N5,300 and Dangote is N5,400 — yet both brands are distributed to them — but they have to hire a truck, do the work of a distributor to stock BUA’s products and eventually sell them above N5,000.

Abdullateef Abayomi, another cement retailer and block maker, in Alagbole, Ogun State, said the new price can’t take effect immediately because many still have BUA’s cement bought at the previous price.

“If you say it should take effect, people that have already buy their market, they will lose lot of money (sic). Imagine from N5,300 to N3,700,” Abayomi said.

“That’s about N2,000 of shortage. That is why it has not taken effect.”

He said the new price would most likely take effect by December.

BUA Cement didn’t respond to enquiries sent to the company.

Source: https://www.thecable.ng/retailers-why-we-cant-sell-bua-cement-at-n3500/amp

Yeye liars.

ok

Very educative.

After all, I can't be expected to load 3500 Naira BUA cement in Benin and then sell for 3500 in Lagos, considering transport and the toll paid along the way.

No longer talk please because the Nigeria that I know any price of commodity or products whom the prices has gone up it's hard and nothing can make the price to come down again, can a dollar bill returns to 450?

Ok

Other investors in dis industry should take advantage, Ibeto, Unicem, should com join hands to flood d market with dia brand, let Dem break d monopoly of dangote and help Nigerians

If the govt is serious about reducing the prices of goods and services, it will do well to provide the necessary infrastructures and amenities to support business such as cheap and available electricity, good road and rail networks, etc.

Ok

Wahala. Audio 3500

One useless thing about this country is that the masses themselves are too greedy

Why don't they tell us how exactly they transport and buy the product when its was around 5500 naira

Guess what the price of bua cement here in Edo state is still 5500 naira

We all know cost of transportation is insignificant here since their factory is right here

Now ask the retailers they will tell you old stock in the shop is the problem that they have to sell it off first


This are same Nigerians even when they have old stock in the market and the price of that goods goes up they won't sell at the old price they will sell at the new price

Why don't they sell their old stock at the new price now

SoNature:


Source: https://www.thecable.ng/retailers-why-we-cant-sell-bua-cement-at-n3500/amp

😆🤣🤣🤣🤣🤣

Lol people wey dey ment...


Have seen Bua Cement truck distributing cement in my area massively still the cement is scarce ...



If Bua increase dere Market to 10k per cement now all this people will not av any excuse nd start selling....

Nigeria is one set of greedy and desperate people if you sell the market you bought for 5k for 3500 automatically you will still be able to afford the new rate so what's with all this excuses....

sammysammy111:
Other investors in dis industry should take advantage, Ibeto, Unicem, should com join hands to flood d market with dia brand, let Dem break d monopoly of dangote and help Nigerians

Define monopoly?

Some of them will buy the new stock and still claim it's old stock ooh

Is Here

The Cable Newspaper Working For Dangote. Very Pathetic

We are Our Own Problem

The indigenes of Nigeria are very very funny.

It is unfair to ceate false hope and lie to the people to get market.

Summary : BUA does not have enough vehicles to distribute. Hence the retailers have to hire trucks to get it delivered. In essence, high transportation cost is the reason why they're not going to reduce the price. I previously mentioned that the wickedness in Nigerians will not allow the retailers reduce the price but now, I don't blame them. Hike in fuel price seriously affected everything. If fuel is still the same price then definitely, there will be no reason for it not to come down.

Yeye sellers if they announced increments u guys would have effected it since ,make una dey play later una go dey blame government 🚶‍♂️🚶‍♂️🚶‍♂️😡

So BUA decided to mislead people and give them false hopes.

After almost 70years as a nation, we don't have network of cargo trains to and from every state of the federation to facilitate bulk movement of goods and services.

This is shameful.

The problem is with the major distributors not the retailers, they distributors add a high profit margin after they must have gotten it at a discounted price from BUA.

U dont expect retailers to sell at that rate when there's no other means of transport except trucking.
Liter of diesel is now 1300 as against 1050 three days ago. So when u factor cost of transport, cost of loading and other miscellaneous u will understand that Nigerians are in for d real shit
When BUA announced crash in price of cement, what I expected govt to do was get involve in setting up centers of landing, from their it will be easier for retailers to convey it to their choice of location, that alone will save them transport cost in landing from Benin to the various locations.
Govt has a lot of work to do, not only ronu up and down

I bliv from next year it will take effect nationwide

You think na Politicians/Leaders be our only problem abi?
Just look into the Mirror and look around and you will realize that everybody dey greedy.

Oloriburuku set of people


How ve they been able to sell at 5k when the prices ve not been brought down.