The Chairman and Founder of the BUA Group, Alhaji Abdulsamad Rabiu, has called for the liberalisation of Nigeria’s cement policy to boost production and subsequently crash the price of the commodity. Rabiu said he advised the federal government to open up the industry to allow for more players, expressing the belief that such would help to crash the price of cement in the country.

He states quote:

"Even though this cement policy is a good one, it must be done in such a way that a lot of players must come in and participate. There is no point in making a policy that only one, two, or three people are able to benefit from that policy. That does not make sense. I am benefiting from this policy, but I know it is a bad policy. So, whilst the policy is good, the way it is being administered is not good. You can’t have a policy that restricts so many people from participating, at the end of the day, you are just creating a monopoly."

Rabiu urged the federal government to open up the cement industry for more competition.

According to him, the few players in the industry, “are making so much money in the industry and Nigerians are the ones paying for this. I am part of it, but I know it is wrong. Few people are benefiting and 200 million people are suffering. The business is doing well, we are making money, but how much money do you really need?"

https://www.thisdaylive.com/index.php/2021/02/09/bua-advocates-liberalisation-of-cement-policy-to-crash-price/

Them go gree hear?..they are making money through dangote so it doesn't concern them.. anything wey no favour our greedy politicians them no go do am..

lilvicky68:
Them go gree hear?..they are making money through dangote so it doesn't concern them..

How do you know this? Is Rabiu not also a northerner?

Aconomist:
How do you know this? Is Rabiu not also a northerner?

Don't you know as dangote makes enough gain through cement people with shares also partake

Dangote and Bua will fight each other till death just because of obu-okpella mining site

Heard that mining site is so rich and it's known for its natural sedimentary rock-based mineral resources, which include limestone, calcium, and granite, feldspar, talc, clay, marble, etc.

*Thats the genesis of their beef *

Dangote earns a 60% profit margin on cement, the highest in the world.

Following

In saner climes,Dangote would be paying fines in billions for anti-competitive business practices and possible investigation for any bribery of government officials.
Here we are celebrating a man whose only business motto and path to stupendous wealth has been through use of government contacts to get monopoly and driving out other Nigerian businesses through same government agents.

Oga Rabiu, you sha like to tackle your Senior Brother Alhaji despite copying his model...If cement policy allows an all comers affair what do you think would happen to the limited limestone resource. The F.G knows Nigeria is yet to start in terms of development, Lagos would be transforming to a Vertical city in the next 20 years those are realities. Remind me of the Yoruba movie I watch early this morning where one King was always begging for handout and almost sold a gold mine for 10000Naira per plot while another King sold the same land for 1.5billion Naira hereby having more than enough to take care of his subject.
We might both be looking at the same thing but seeing different things.

seborrhic:
In saner climes,Dangote would be paying fines in billions for anti-competitive business practices and possible investigation for any bribery of government officials.
Here we are celebrating a man whose only business motto and path to stupendous wealth has been through use of government contacts to get monopoly and driving out other Nigerian businesses through same government agents.

I have no more respect for Dangote. The man is a dirty crook. With the above statements, Rabiu has proven that he actually cares about Nigeria to some extent. Dangote's only goal is to loot the country into the ground.

uruba23:
Oga Rabiu, you sha like to tackle your Senior Brother Alhaji despite copying his model...If cement policy allows an all comers affair what do you think would happen to the limited limestone resource. The F.G knows Nigeria is yet to start in terms of development, Lagos would be transforming to a Vertical city in the next 20 years those are realities. Remind me of the Yoruba movie I watch early this morning where one King was always begging for handout and almost sold a gold mine for 10000Naira per plot while another King sold the same land for 1.5billion Naira hereby having more than enough to take care of his subject.
We might both be looking at the same thing but seeing different things.

Limited limestone resource? Go back to school, stupid monkey. Here are Rabiu's own words from the article.

The BUA chairman said there are many other companies that have the capacity and access to funding to be able to compete in the industry in Nigeria, adding that the entire country is sitting on limestone.

“Anywhere you go, there is limestone in Nigeria,” he emphasised and explained: “And the cost of production is probably the lowest in Africa.”

https://www.thisdaylive.com/index.php/2021/02/09/bua-advocates-liberalisation-of-cement-policy-to-crash-price/

If it was suggested by a southerner, dem go call you hater

lilvicky68:

Don't you know as dangote makes enough gain through cement people with shares also partake

A country that enables and allows one individual to corner up to 60% of a critical sector like cement....that one na country!? Any wonder he’s the richest African and black man today....what when a country as big and as wealthy as Nigeria hands him a near monopoly of the cement market? They finished with cement and they’re handing over the petrochemical sector to him as well!

This is why Igbos are despised mainly by the Fulani elite: we know their game-plan and are exposing it for naive, complacent and lilly-livered Nigerians to take note....coupled with the fact we don’t accept the slave-status they want to place on all non-Fulani Nigerians!

Aconomist:
Limited limestone resource? Go back to school, stupid monkey. Here are Rabiu's own words from the article.

The BUA chairman said there are many other companies that have the capacity and access to funding to be able to compete in the industry in Nigeria, adding that the entire country is sitting on limestone.

“Anywhere you go, there is limestone in Nigeria,” he emphasised and explained: “And the cost of production is probably the lowest in Africa.”

https://www.thisdaylive.com/index.php/2021/02/09/bua-advocates-liberalisation-of-cement-policy-to-crash-price/

Chimpanzee can you please mind your use of words

I actually like this Rabiu guy! He seems fair-minded and comfortable with having a level playing field for all!

uruba23:

Chimpanzee can you please mind your use of words

No. You Nigerians reason like monkeys. In a normal country, someone like Dangote would be in jail. But here you are making excuses and talking about so-called "limited limestone resources" who educated you?

Aconomist:
No. You Nigerians reason like monkeys. In a normal country, someone like Dangote would be in jail. But here you are making excuses and talking about so-called "limited limestone resources" who educated you?

Oga you can make your point without being derogatory in your language, it makes it difficult to look at thing from your point of view..okay oya tell the F.G to give limitless telecom license that one doesn't involve any limited resources na. Common sense should let you know some industry do have barrier of entry to enable government sell at a premium and extra tax to take care of their budget.

uruba23:
Oga you can make your point without being derogatory in your language, it makes it difficult to look at thing from your point of view..okay oya tell the F.G to give limitless telecom license that one doesn't involve any limited resources na. Common sense should let you know some industry do have barrier of entry to enable government sell at a premium and extra tax to take care of their budget.

Cement is a critical industry, and if the price is too high, that will destroy the economy. Every house needs cement, every road needs cement. When the government builds a bridge, railroad or airport, they need cement. Why should the government allow 3 companies to monopolize the cement industry forcing the government itself to pay 2 or 3 times the amount to build basic infrastructure. Please brother... think.

Dangote is selling cement at more than double the cost of production. His profit margin is 60% in Nigeria compared to 23% elsewhere in Africa and just 5% in South Africa (because whites aren't stupid enough to allow monopoly).

I have said this time without number that Dangote is a confirmed crook,as we have political thieve thieve,Dangote and his gangs are economic thieves with the help of political thieves.


Imaging last year,BUA declared 45.7 percent profits on cement. we haven't seen the profit declaration of the senior economic crook a.k.a Dangote on his cement company maybe he didn't wanted to declared it not to cause uprising.

For those who don't understand financial statements. Look at the bottom of this chart highlighted in yellow. EBITDA refers to cash earnings before tax.

Dangote is making 59.9% profit in Nigeria compared to only 23% profit in other African countries because other African countries don't allow him to monopolize the market. Data comes from Dangote's own website.

https://www.dangotecement.com/wp-content/uploads/reports/2020/9M/DangoteCement_9M2020_ResultsPresentation.pdf pg. 5

Aconomist:
Cement is a critical industry, and if the price is too high, that will destroy the economy. Every house needs cement, every road needs cement. When the government builds a bridge, railroad or airport, they need cement. In what sane country should the government allow 3 companies to monopolize the cement industry forcing the government itself to pay 2 or 3 times the amount to build basic infrastructure. Please brother... think.

Nigeria is a country lacking in critical infrastructure and yes we have housing deficit which need to be urgently addressed.The truth is that we have 5 cement company in Nigeria and I want to believe we have the highest capacity in Africa.I think the policy thing has to be something you table to government and try to convince them of alternative way to generate taxes.If Lagos for example transform to a tourist hub as a result of more skyscrapers and Cruise ship landing from South Africa and Malawi then the F.G can generate more money, but to put the blame at the door steps of business men who had a template through which their business plan were made is very unfair..If Mr Rabiu is very sincere let him crash his price, and see if Alhaji won't, at the end they would both face the consequences when neighbouring countries comes and enjoy arbitrage opportunities at the expense of the Nigeria economy .

uruba23:

Nigeria is a country lacking in critical infrastructure and yes we have housing deficit which need to be urgently addressed.The truth is that we have 5 cement company in Nigeria and I want to believe we have the highest capacity in Africa. to put the blame at the door steps of business men who had a template through their business plan is very unfair..If Mr Rabiu is very sincere let him crash his price, and see if Alhaji wont at the end they would face the when neighbouring countries comes and enjoy arbitrage opportunities at the expense of the Nigeria economy .

This is not true. Here are quotes from Rabiu addressing this misconception.

Rabiu told reporters yesterday in Lagos that the price of cement, which presently sells for about N4,000 per bag, remains high in Nigeria because the few producers are not able to meet the country’s huge demand. “That is a simple economics of supply and demand,” he said, just as he faulted the belief that the country is self-sufficient in cement production.

The billionaire explained: “Look at the numbers: Nigeria is over 200 million people today in terms of population. If you look at the production of cement, last year, we were under 30 million metric tonnes.“In fact, last year was higher than the year before, which means that in 2019, we were doing between 26 and 27 million metric tonnes. I am talking about production, and not installed capacity, which is another thing entirely.

“Nigeria’s 200 million people make it about 130 kilograms per head. If you check, you will see that most countries in Africa are doing between 170 kilogrammes to 200 kilogrammes per head.“So, Nigeria is actually producing less than other countries in Africa, apart from maybe Niger Republic. So, that means that we do not have enough capacity.”

https://www.thisdaylive.com/index.php/2021/02/09/bua-advocates-liberalisation-of-cement-policy-to-crash-price/

On a per capita basis, Nigeria is consuming less cement than almost any other country in Africa. How much is Dangote paying you to defend this insanity?

olajizz01:
I have said this time without number that Dangote is a confirmed crook,as we have political thieve thieve,Dangote and his gangs are economic thieves with the help of political thieves.


Imaging last year,BUA declared 45.7 percent profits on cement. we haven't seen the profit declaration of the senior economic crook a.k.a Dangote on his cement company maybe he didn't wanted to declared it not to cause uprising.

Dangote makes 60% profit in Nigeria.

Aconomist:


This is not true. Here are quotes from Rabiu addressing this misconception.

Rabiu told reporters yesterday in Lagos that the price of cement, which presently sells for about N4,000 per bag, remains high in Nigeria because the few producers are not able to meet the country’s huge demand. “That is a simple economics of supply and demand,” he said, just as he faulted the belief that the country is self-sufficient in cement production.

The billionaire explained: “Look at the numbers: Nigeria is over 200 million people today in terms of population. If you look at the production of cement, last year, we were under 30 million metric tonnes.“In fact, last year was higher than the year before, which means that in 2019, we were doing between 26 and 27 million metric tonnes. I am talking about production, and not installed capacity, which is another thing entirely.

“Nigeria’s 200 million people make it about 130 kilograms per head. If you check, you will see that most countries in Africa are doing between 170 kilogrammes to 200 kilogrammes per head.“So, Nigeria is actually producing less than other countries in Africa, apart from maybe Niger Republic. So, that means that we do not have enough capacity.”

https://www.thisdaylive.com/index.php/2021/02/09/bua-advocates-liberalisation-of-cement-policy-to-crash-price/

Okay what do think is Nigeria optimal capacity and his their a government policy in place stopping Nigeria companies from participating in the industry.

Rabiu, however, attributed the high cost of cement in Nigeria to low production capacity. According to Rabiu, whenever any of the plants of the few players in the industry develops a fault, the impact is immediately felt on the price of the commodity, which is passed on to buyers of the product.

According to him, “The moment you have any problem in any of the plants in Nigeria and there is a shut-down or any challenge, immediately, you will see the impact in terms of price going up.“That is because we do not have any buffer whatsoever. So, it is like hand to mouth daily. The reason why the price of cement went up recently was simply because the was an issue at one of Lafarge’s plants and they had to stop production for few months to rectify that.“So, as that had happened, the supply from Lafarge reduced by about 25 per cent in Ogun State.

Also, one of the plants of Dangote Cement had a technical issue and briefly, they couldn’t load. But that has been resolved. “But because that took about one month, the price of cement went up to about N4,000, from N2,800.”

I don't think it has anything to do with low production capacity after all Alhaji has plants in other countries...you keep talking about profit percentage but do you know how much profit Apple makes per Iphone 12 .Every one has a pricing template to protect it's economy.Stop looking at the percentage look at the derivatives in terms of FDI buying up stocks and increasing the valuation of the company which is also good for the country .Today you know Apple is worth more that our reserves 20 times if not more.

uruba23:
I don't think it has anything to do with low production capacity after all Alhaji has plants in other countries...you keep talking about profit percentage but do you know how much profit Apple makes per Iphone 12 .Every one has a pricing template to protect it's economy.

As I previously suspected, you are a monkey unworthy of basic respect. Comparing simple cement to a high-end luxury technology like an iPhone? And for your information, Apple has an EBITDA margin of 30% compared to Dangote's 60%.

Imagine selling a basic commodity like cement for double the profit margin of a cutting-edge cellphone? If that isn't bad enough, imagine Nigerians defending it. You animals have the zoo of a country you deserve. There is no explanation for Dangote's margin except scarcity or uncompetitive practices.

Aconomist:
As I previously suspected, you are a monkey unworthy of basic respect. Comparing high-end luxury technology like an iPhone to simple cement? And for your information, Apple has an EBITDA margin of 30% compared to Dangote's 60%.

Imagine selling a basic commodity like cement for double the profit margin of a cutting-edge cellphone? If that isn't bad enough, imagine Nigerians defending it. You animals have the zoo of a country you deserve. There is no explanation for Dangote's margin except scarcity or uncompetitive practices.

Chimpanzee enjoy your day since you can't stop being derogatory.

uruba23:

Chimpanzee enjoy your day since you can't stop being derogatory.

You are a monkey. I can't argue with a dumb animal. You belong in a zoo.

Aconomist:
As I previously suspected, you are a monkey unworthy of basic respect. Comparing high-end luxury technology like an iPhone to simple cement? And for your information, Apple has an EBITDA margin of 30% compared to Dangote's 60%.

Imagine selling a basic commodity like cement for double the profit margin of a cutting-edge cellphone? If that isn't bad enough, imagine Nigerians defending it. You animals have the zoo of a country you deserve. There is no explanation for Dangote's margin except scarcity or uncompetitive practices.

Oga take it easy na.

Aconomist:
You are a monkey. I can't argue with a dumb animal. You belong in a zoo.

And you belong where?