A year after Abdulsamad Rabiu, Chairman of Bua Cement, promised to reduce the price of cement, the pledge remains unfulfilled.
In 2023, Rabiu announced to journalists after meeting with President Bola Tinubu at the State House in Abuja that he intended to lower the price of cement in Nigeria to between N3,000 and N3,500 per bag. This price reduction, he claimed, was part of his company’s effort to support the Federal Government’s initiative to stabilize the prices of essential commodities. However, he noted that the new pricing would only be possible following the commissioning of two new cement plants, each with a 3 million-ton operating capacity, by the end of the year.
Rabiu stated, “Let me thank His Excellency Mr. President for graciously receiving me today. I came to inform His Excellency about the affairs of our cement business. We have two new lines of 3 million tons each that we will be commissioning by the end of the year. So I explained to him that we want to support the government’s efforts in bringing down the cost of cement. By the time these lines are commissioned, BUA Cement will be producing about 17 million tons per annum, and with that, we intend to bring down the cost of cement from its current level of N5,000 or N5,500 per bag to maybe N3,000 to N3,500 per bag.”
Rabiu also emphasized that the price reduction was feasible because BUA Cement produces cement locally. “Eighty percent of the raw materials we use, such as limestone and gypsum, are sourced locally, and we have access to energy, including gas, in Nigeria. So we want to support the government in ensuring that the prices of these commodities are brought down,” he said.
Recently, at the company’s 8th annual general meeting held at the Congress Hall of Transcorp Hilton Hotel, No. 1, Aguiyi Ironsi Street, Maitama, Abuja, Rabiu attributed the rising cement prices to middlemen, who have been selling cement at prices far above the intended N3,500, with some selling for as much as N8,000 per bag, thereby making significant profits from high margins. He claimed that Bua Cement stopped selling at N3,500 when they discovered the middlemen’s actions, stating, “I think we sold more than a million tons at N3,500 before we realized what the dealers were doing.”
However, industry stakeholders have dismissed Rabiu’s explanation. A report by cemnet.com quoted several stakeholders expressing skepticism. Kayode Animashaun, a prominent figure in Nigeria’s cement industry, argued, “The recent excuse from the chairman of Bua Cement is unacceptable. There is no way dealers would buy at N3,500 and sell at N8,000. This is a feeble attempt to tarnish the dealers’ reputation.”
He added, “This is a typical strategy among the big players in the industry to outshine each other by making public statements that do not reflect reality. It is a fraudulent regime filled with deceit. I believe Bua Cement knew they wouldn’t implement the proposed price reduction but used the announcement to gain market share.”
Ahmed Magaji, another stakeholder in the cement distribution chain, echoed this sentiment, saying, “There is no way dealers would buy cement at N3,500 and sell for N8,000. It doesn’t make sense. Most dealers buy on credit and remit payments when we restock. If we were selling at N8,000, manufacturers would not continue supplying us. Bua Cement’s claims don’t add up—they are just shifting the blame, which is common among these businessmen.”
These comments suggest that Bua Cement’s pricing policy might have been a strategic move to gain market share. There have been calls for Rabiu and Bua Cement to apologize to Nigerians for raising false hopes.
Reports from 2023 confirmed the unavailability of Bua Cement at the promised price. According to the Nigerian Tribune, a source who wished to remain anonymous said, “I expected BUA Cement to come out clean instead of shifting blame. They knew they were playing games when they announced the lower price. Now that the truth is out, they are in a difficult position and are blaming cement dealers. BUA Cement owes Nigerians an apology if they can’t deliver on the N3,500 per bag promise. That would be the right thing to do.”
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