Amid unavailability of product at N3,500, BUA cement CEO makes more promises

Amid the scarcity and unavailability of the BUA Cement reportedly sold for N3,500 per bag, the Chief Executive Officer of BUA Group, Abdul Samad Rabiu has reiterated that the product will maintain the N3,500 per bag price from January 2024.

In an extensive investigation Ripples Nigeria had reported that the N3,500 price per bag of cement appears a farce as the product was largely unavailable in most locations visited while in the few locations that have the product, it sells for as high as N5,200 to N5,500 per bag.

Findings showed that several challenges, mainly transportation of the products from the two factories in Edo and Sokoto states to respective locations have impeded the distribution of the product and the aim of the company to sell at the projected price.

However, in the latest announcement, the company promised to address the logistic challenges and also clarified that the price was the Ex-depot price.

Rabiu while speaking with State House Correspondents after a visit to President Bola Tinubu on Thursday in Lagos said the company would also make the product accessible and affordable to customers despite various challenges.

The BUA boss said: “You know the price that we have set will be N3,500 per bag. You know the ex- factory, of course, plus Value-Added Tax (VAT) and then delivered to customers depending on the region.

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“As you know, the factory that we have; one is in Edo, the other one is in Sokoto State. So, for example, if you want us to deliver cement to you from Sokoto, say, to Lagos from Adamawa or to Maiduguri, the distance is quite far.

“So dependent on the distance and dependent on the location, you know the price changes. But we intend to keep that promise.”

Rabiu added that the cement company site in Sokoto that would be inaugurated by January 2024 is expected to further expand the market across the country.

“Though we’re having some issues here and there, but, these are issues that I believe we can address and we are addressing them,” he added.

What this means is that the company will sell to wholesalers/retail outlet owners at N3,500 who in turn will fix its selling price.

Furthermore, this means that end-buyers might not get the product when it is available at N3,500 per bag.

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