Chairman of BUA Group, Alhaji Abdulsamad Rabiu, has thrown his weight behind Dangote Cement Plc’s reduction in the cost of cement from about N1,700 to N1,000 a bag, representing a 40 per cent price cut, which was announced at the weekend.

According to Rabiu, he has always advocated a reduction in the cost of cement so that more Nigerians can have access to the product and realise their dream of owning houses of their own.

“It is against this background that I commend Alhaji Aliko Dangote for this patriotic initiative which is long overdue,” he said.

He further revealed that he had an extensive telephone conversation with Dangote on the issue and encouraged him on the initiative.

“What Alhaji Dangote has done today is significant. I am very pleased about it because it would make the cost of the product more easily affordable to Nigerians. With this price reduction, more consumers will be able to buy the product and subsequently drive up demand and in turn increase market share for industry players.

“I hereby urge all cement producers to emulate Dangote and bring down the cost of cement. There is absolutely no reason for a bag of cement to cost so much.

“Despite the infrastructure challenges being faced by the manufacturing sector of the Nigerian economy, it does not justify the high cost of cement.

“On our part, I have already directed all our plants to follow suit and implement the new price regime. We still believe that more can be done to bring down the price even further for the benefit of Nigerians,” Rabiu stated.

The BUA Group chairman stressed that there was really no reason for the price of cement to exceed N1,000 per bag, bearing in mind the massive success of the backward integration policy implemented 12 years ago, in which tens of billions of dollars were directly and indirectly injected into the Nigerian cement industry with Dangote Cement accounting for the larger share of the contribution.

This has seen cement national productivity rising from a mere 2.2 million metric tonnes per annum (mtpa) to over 30 million mtpa in the last 10 years, Rabiu observed.

BUA Group acquired Edo Cement Company Limited three years ago and has spent over $500 million in putting up an ultra-modern three million mtpa production line which is billed to be commissioned in the first quarter of next year.

Upon completion of this plant, the total annual production capacity will rise from 500,000 mtpa to 3.5 million mtpa.

In addition, the company also has controlling equity in Sokoto Cement Company also known as Cement Company of Northern Nigeria Plc (CCNN). The plant is presently being expanded with a 1.5 million mtpa line. Work is currently in progress and will be commissioned early 2016.

http://www.thisdaylive.com/articles/bua-group-throws-its-weight-behind-cement-price-reduction-commends-dangote/193185/

Inflation is man-made, now that the competition is hitting up, the manufacturer with the best marketing strategy and perhaps the cost leader may take the lead

I love the competition.

I remember when the reduced fuel price to 65 naira a litre in 2011 and removed fuel subsidy in 2012 after they must have won the election.
They are using Cement this time.After February 2015 come and quote me,Cement would be sold for #4,000 naira per bag.

Politicks!

bring it on,why did not happenlast year?

Gej Till 2019

this is very good

Haha.... Make una no reduce na? naija wey like awuf so, them no go waste time to buy dangote own finish na.

Look at this statement '' there is absolutely no reason for a bag of cement to cost so much'' yeah thats true, yet they skyrocketed the price for their own selfish interest.

This is good tho, but how about the retailers that just bought stock of cement at N1,700 and have not yet sold them? will they now make loss of N700/bag?

Someone asked yesterday '' what about those who have bought in stock?'' So don't expect the price to change quickly when u go to buy.

MKO4ever:
This is good tho, but how about the retailers that just bought stock of cement at N1,700 and have not yet sold them? will they now make loss of N700/bag?

ma hear say them go gree! They will sell their stock at N1700 then after that change to N1000. Who wan make loss of N700 for each bag?

Imagine that you have over 500 or 1000 bags!

MKO4ever:
This is good tho, but how about the retailers that just bought stock of cement at N1,700 and have not yet sold them? will they now make loss of N700/bag?

Don't mind them they will come and sell it themselves..

It will take a minimum of one month before the new pricing takes effect.

For now, it is a newspaper price reduction..

Buhari brought about this positive development

*grabs nylon* nd starts rationin out pop corn to all who wants to sit nd watch comments,..INCLUDING MICHEAL JACKSON

Owk

Dangote Cement No.1 competitor (BUA Group) welcomes 40% price slash on cement
Source: http://www..com.ng/index.php/national-news/item/1037-dangote-cement-no-1-competitor-welcomes-40-price-slash-on-cement

..

good news

I just hope they dont reduce the quality of these cements.

dangote oya.... make it 500 naira


i wish the others copy copy too..

sotey we go dey use cement make solid shoe soles, motor rims, furniture, cooking pots..


mtcheew.. naija always playing with the superficial issues while leaving out the crux of the matter

I'll see if this will remain by April 2015...

benefits of healthy competition

After almost milking us dry abi?

Very good development o, mean while, BUA cement is not every where, all i see is their Billboards but not their products.

Gone r dose days wen cement was even 5naira

GEJ till 2019


Jona don settle this man too against next year.

Buhari I just dey laugh you and your borrowed money for presidential ticket.


Jona is the master planner.

If you want to build house, this is the season because after election, it's another story.

Wonder wonder. Wondermentation everywhere. FRESH-AIR.
GEJ TILL PANADOL CURE EBOLA.

She no go sell reach dangote anyway

talktimi:
Buhari brought about this positive development

lol
u n ur tasteless jokes

Ok now