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BUA Cement boss, Rabiu, defends price increase, despite previous promises

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FIGHT AGAINST COVID-19: BUA Cement adds N300m to its N1bn donation

The Chairman of BUA Cement, Abdul Samad Rabiu, has defended the high cost of Cement in Nigeria following reports that the manufacturer increased cost.

Rabiu said low supply of cement to meet high demand forced the price up. He stated that BUA, Dangote and Lafarge cement production capacity is not sufficient.

The businessman made this known during the company’s Annual General Meeting held on July 8, 2021. He stated that Nigeria’s 210 million population outnumbered the industry’s 30 million production capacity.

BUA Cement places cost on customers

During the week, BUA Cement cost was increased by N200 taking its retail price to N3,000 from N2,800. The price hike occurred despite previous statements by the company that it wouldn’t.

Read also: Unilever, BUA Cement, Dangote Cement, Dangote Sugar make Ripples Nigeria stocks-to-watch list

In April and June, BUA Cement released statements assuring the market that the company was making enough money that won’t necessitate an increase in the cost of its product.

Last month, it stated that the timing is not right, and the company doesn’t have any justifiable business reason to increase its ex-factory price, which determines the final market price.

It also directed distributors not to engage in arbitrary increment, but this week, the company’s price went up, just a month after its market rival, Dangote Cement added N260 to its product cost.

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