BUA Accuses Wholesalers of Preventing Reduced Cement Price Access

Despite BUA Cement Company’s commitment to lowering the cement price to N3,500 per bag, the firm has pointed fingers at intermediaries and wholesalers for obstructing the end-users’ access to this reduced rate.

In a recent statement, BUA Cement explained the challenges it faced in ensuring the cement was sold at the promised ex-factory price. While the company upheld its promise to decrease the cement price, it alleged that intermediaries and wholesalers had thwarted the efforts, preventing the intended beneficiaries from enjoying the reduced cost.

Back in October 2023, SaharaReporters revealed BUA Cement’s announcement to cut the ex-factory cement prices to N3,500 per bag, effective from Monday, 2 October 2023. This decision aimed to spur development in the building materials and infrastructure sectors, reflecting the company’s commitment to making cement more affordable.

Furthermore, BUA Cement reassured that all pending, undelivered orders paid for at the old prices would be revised downwards to N3,500 per bag in alignment with the new pricing strategy.

Despite these efforts, the cement price escalated to between N12,000 and N13,000 per 50kg bag five months later, raising doubts about the company’s ability to sustain the reduced price. The significant increase from the promised N3,500 has led to skepticism regarding the effectiveness of the price reduction strategy.

In response to threats from civil rights organisations to picket the company for failing to implement its commitment to the reduced cement price, BUA Cement clarified that market forces hindered the fulfillment of this promise. The company faced a seven-day ultimatum from two civil society groups demanding the sale of cement at N3,500 per bag or risk facing protests.

Mr. Timothy Sogbeinde, overseeing Creatives & Visual Identity management at BUA Group, addressed the concerns, stating that the company had indeed sold cement at the reduced ex-factory price for several months before discontinuing the offer. Mr. Kabir Rabiu, the executive director, added, “We actually sold our cement for three to four months at N3,500. We thought other players in the cement industry would join us in making the price of cement affordable.”

However, BUA was unable to maintain the discounted cement price due to the obstacles posed by intermediaries and wholesalers, who prevented the end-users from accessing the reduced price. This revelation sheds light on the complexities of the cement market and the challenges faced in ensuring affordable prices for consumers.