The company will lower its cement pricing, according to Abdul-Samad Rabiu, Chairman of BUA Group, in order 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 forced Dangote Cement to give an explanation for why its products are priced as they are.
As cement importation wouldn’t be good for the nation, BUA Cement’s founder stated that the company will enhance its production lines in order to reduce the price of its products.
During the BUA Cement annual general meeting on Thursday, Rabiu stated that the company intends to boost its production capacity by at least 40% to 70 million tonnes before the year is over.
By the end of the year, two more manufacturing lines are expected to be operational, increasing our production capacity by at least 40% to 70 million tonnes, according to Rabius.
“The idea of increasing production capacity is to see how we can be able to reduce prices on our part to support the government’s efforts because importation will not be the best solution,” the company stated.The typical cost of cement in Nigeria is N4,500, or N90,000 ($100) per tonne. Because of the current strong currency and the need to pay taxes, trucking fees, and other charges when bringing cement through ports, the government’s threat to begin importing it will just increase the cost.
A dividend of N2.80 kobo per share has been proposed to shareholders by BUA Cement for the year 2022, an increase over the N2.60 kobo handed out the year prior.
