BUA Cement to drop cement price, offers shareholders N2.80kobo per share dividend

Abdul-Samad Rabiu, the chairman of the BUA Group, announced that the business would lower its cement pricing to stop the government from sanctioning the importation of cement into Nigeria.

Rabiu made this statement in response to criticism of the cost of locally produced cement in the nation, which compelled Dangote Cement to justify the pricing of its goods.
Since importing cement would be detrimental to the nation, BUA Cement’s founder said that the company will expand its manufacturing capacity in order to reduce the cost of its goods.

Before the year is up, BUA Cement intends to raise production capacity by at least 40% to 70 million tonnes, as stated by Rabiu during the company’s annual general meeting on Thursday.

By the end of the year, Rabius stated, “We plan to have two more production lines operational, increasing our production capacity by at least 40% to 70 million tonnes.

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In order to help the government’s efforts, “the idea of increasing production capacity is to see how we can be able to drop prices on our part. Importation will not be the best solution.”Cement costs N4,500 on average in Nigeria, which equals N90,000 ($100) a tonne. Therefore, if the government threatens to begin importing cement, it will cost them much more because the current high exchange rate makes it more expensive to transport via ports and requires paying taxes, trucking fees, and other charges.

In the meantime, BUA Cement has increased the dividend it would pay to shareholders for the year 2022 from N2.60 kobo to N2.80 kobo per share.