A Nigerian cement production company, BUA Cement Plc, has announced a reduction in the price of the commodity.

AbdulSamad Rabiu, the chairperson of BUA cement Plc, last month, said the company was considering a plan to reduce the price of cement upon completion of its new lines by the end of 2023.

Rabiu had explained that the planned reduction was part of efforts to support the Nigerian government‘s quest to alleviate the suffering of Nigerians.

New price

In a statement on Sunday evening, the company’s management said it had now decided to bring the “price reduction forward” in fulfilment of the pledge.

The reduction would now take effect from 2 October, according to the statement which was posted on the firm’s official Facebook page.

“As a result, BUA Cement would now be sold at an ex-factory price N3,500 per bag so that Nigerians can begin to enjoy the benefits of the price reduction before the completion of our plants,” the company said.

The current ex-factory price is N4,650, while it is being sold at N5,000 in the market. The reduction represents a 25 percent drop.

Several Nigerians on various social media platforms have expressed their excitement over the development.

More on the way

The BUA Cement Plc hinted that it intends to review the reduced prices further in line with their earlier pronouncements.

The company said the further review would take place upon completion of ongoing construction of its new plants which would increase the company’s production volumes to 17 million metric tonnes per annum.

“All pending, undelivered orders which had been paid for at the old prices will be reviewed downwards to N3,500 per bag in line with the new pricing from October 2, 2023,” it said.

“Our licensed dealers are also enjoined to ensure that end users benefit from this reduction in ex-factory prices as we will monitor field sales to ensure compliance.”

With the crash to N3,500, the market price is expected to be between N3,850 and N4,000, according to an Abuja-based Cement dealer.

PT/Daily Trust/NewsScroll