As the cost of building materials increase, the chairman of BUA Cement, Abdul-Samad Rabiu, has revealed that his company is in talks with the Federal Government to see ways of crashing the price of cement.

Shareholders of the company also approved the proposal of the board of directors to pay N2.80 per share in 2022 compared to N2.60 per share paid in the previous year of 2021.

Speaking at the seventh Annual General Meeting of the company in Abuja on Thursday, Rabiu disclosed that revenue rose by 40.3 per cent to N361.9bn in 2022 as against N257.3bn recorded in 2021.

He said the figure showed BUA cement outperformed its peers in cement volume growth during the period under review.

He added that the company’s profit after tax rose by 12.1 per cent to N101.1 billion, in comparison to N90.1 billion recorded in 2021.

Rabiu, while reacting to the frustrations of the Minister of Works, Dave Umahi, on contractors’ complaints of high cost cement, assured that the company is currently increasing its production capacity to enable it drive down prices, oscillating between between N4,500 and N4,800, depending on the location.

Rabiu said, “I understand that the Minister is quite concerned that the price of cement is high at almost N5,000 per tonne. I appreciate where the government is coming from and the frustration from all the issues in the country.

“The price of cement at N5,000 is not high. If we look at the rate of the US dollar today, importing cement will be at N5,000. The cement cost, insurance and freight to any port in Nigeria will be in the region of about $100 a tonne. So, at $100 per tonne, if you take N800 to $1 then it will be N4,000 per bag. Then the port cost, and transportation from the port.

“It’s not that the government wants to import cement, but they are frustrated that the price of cement is high. What we told our shareholders is that we will engage with the government to support it.

“Even though we know that the price of cement is high, it will not be cheaper if imported. We have two lines coming up by the end of the year, the Obu line 3 and the Sokoto line 5 that will give us a combined capacity of six million tonnes. By the time we have those two lines active with the current one, we will have about 17 million tonnes per annum. We are going to reduce the prices of cement once these two lines are up and running. This is the promise we are making to Nigerians.

“But you shareholders will have to expect less dividends. It’s a sacrifice you have to make to ensure cement is cheaper.”

I’ll reach out to the Minister and sit with him”, Rabiu assured.

He further revealed that his company has imported 1,000 trucks in anticipation of the two new lines coming on stream.

“We target 75-80% capacity utilisation”, he added.

https://www.google.com/amp/s/sunnewsonline.com/were-in-talks-with-fg-to-crash-cement-price-bua-chairman/%3famp

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Dangote nko??


Female anopheles mosquito sucking Nigerians blood and giving them malaria untop.

Na yoruba Muslims god shaa

DANGOTE one of nigeria
PROBLEM

If imported cement is cheaper than cement in Nigeria despite having limestone deposit then it is better we import.

The essence of local production is reduces price and affordability.

In all these years they haven't achieved that.

Funny thing is this limestone has no tie with dollar but they always find a way to deceive gullible people that it is dollar.


Dont forget we import with dollars ooo. And imported cement is cheaper.

Don't tell me is demand and supply because cement has never been scarce.

It is always available. It defies all laws of demand and supply.

Dangote na azaman to yahoo politicians

Let's analyze it

Limestone which is 80 percent of the cement production is in Nigeria.
You bag it and sell.
If the government give you limestone drilling site and you pay workers in naira and very cheaply.

Why is cement 5k?,

It is a natural resource on our land.


Again in Jonathan administration, all dangote debt were written off by sanusi lamido. Billions of naira.

Which means he had an edge.

Still cement did not become cheaper.


Please make it make sense.

before dangote came into cement industry it was cheaper and competitive

Omoh

That's good...



I always have soft spot for the CEO of Bua, he is more humane than the other guy

Blatant lie. Even if they manage to, inflation will enthusiastically increase it.

I hope it works for the good of the people...

YOu see........

All those people shouting Dangote is expensive...go and buy cheaper alternative. BUA cement. Alhaji BUA himself would be very happy for you to do so, as he would finally be able to show that smug old Kano boy what's up.

Reduce it first

I will believe it when it happens

A welcome development.

We also need the price of iron rods, sharp sand, stones, bamboo, wood...etc, to crash as well, so that people can breath.

To fence a property on 2 plots of land in Nigeria today with pillars, security light bulbs, painting, barbwires and gate would cost you over 2m.

20 years ago, that 2m would build you a decent 3bedroom bungalow.

If the government doesn't sit up, people would have no choice than to start living in mud houses, since it's much cheaper to build.

Bring the news to the media when the price reduction is already effected.




Wittyness

taylor89:
Dangote killed BUA, IBETO and other cement companies

He paid heavily to attain monopoly power

God will punish Nigeria government

God will punish Tinubu and Buhari

Do you think Dangote is the only Person producing Cement in Nigeria?

Ibeto and Bua are both Producing Cement in Nigeria.

Fg

Imagine importing 1000 trucks, our Nigerian roads go suffer. Especially those nonsense roads for Edo state

Dangote is our number one enemy in Nigeria
A wicked rich man

taylor89:
Dangote killed BUA, IBETO and other cement companies

He paid heavily to attain monopoly power

God will punish Nigeria government

God will punish Tinubu and Buhari

Wicked man that launders money for corrupt Nigeria politicians

The other fella is an enemy of the state

But no, I won’t mention his name
You know who

He added that the price reduction will come at year end after they open the new lines in order to force the market to comply even if the likes of Dangote don't reduce their prices. Our fingers are crossed.

taylor89:
Dangote killed BUA, IBETO and other cement companies

He paid heavily to attain monopoly power

God will punish Nigeria government

God will punish Tinubu and Buhari

God is not interested in punishing anyone.

God takes a handsoff approach to its creations.

We humans are on our own.

christejames:
That's good...



I always have soft spot for the CEO of Bua, he is more humane than the other guy

Are you sure?

taylor89:
Dangote killed BUA, IBETO and other cement companies

He paid heavily to attain monopoly power

God will punish Nigeria government

God will punish Tinubu and Buhari

BUA and Ibeto are operating. LaFarge is operating....so that rubbishes your monopoly claim.

Or if Dangote killed BUA...how come BUA is still around to 1) hold AGM, AND 2) To even announce a reduction in price of cement and 3) build a refinery.?

Or how is Ibeto, a company which was tittering on the brink when Tinubu was still in opposition , along with his master Bubu.....killed by Dangote. Plus, Ibeto is operating well well. Very well. (I was happy to find that out...when I saw Ibeto cement bags being offloaded a year ago).

And have you forgotten LaFarge.? Formerly Blue Circle, formerly Elephant cement? Still operating well well.

Oga, I no like APC like you do, but lying and being bitter is not how to go about doing opposition.

Dangote and feeding on Nigerians due to monopoly enh ,is there any Nigerian billionaire that is clean ah

And inflation will increase it.

I really I can work with BUA in the nearest future.
Dangote has become something else.

The salary don finish in just three days.

Yugoslavia247:
If imported cement is cheaper than cement in Nigeria despite having limestone deposit then it is better we import.

The essence of local production is reduces price and affordability.

In all these years they haven't achieved that.

Funny thing is this limestone has no tie with dollar but they always find a way to deceive gullible people that it is dollar.

Omoh

Is better NIGERIA joins the BRICS.

, make dem kuku kill us finish for this country

Criminals