The Chairman of BUA Cement Plc, Abdul Samad Rabiu has said that the company is going to reduce the price of its product by January next year.
Rabiu, said this when he fielded questions from journalists on Thursday in Abuja.
He said the decision is part of the company’s efforts to support the government and Nigerians.
The Minister of Works, Dave Umahi had recently said the federal government was considering the importation of cement as a way of bring down the price of the product.
There has been outcry from Nigeria over the high price of cement in the country. The price of cement is between N4,500 to N4,800 across the country.
Explaining, he said the challenge with the exchange rate was part of the reason for the high price of the product in the country at the moment.
He said, “I understand that the minister is quite concerned, that the price of cement is high at almost N5,000 per tonne. I appreciate where the government is coming from and the frustration from all the issues in the country.
“The price of cement at N5,000 is not high. If we look at the rate of the US dollar today, to import cement will be at N5,000. The cement cost, insurance and freight to any port in Nigeria will be in the region of about $100 a tonne. So, at $100 per tonne, if you take N800 to $1 then it will be N4,000 per bag. Then the port cost, and transportation from the port.
“It’s not that the government wants to import cement, but they are frustrated that the price of cement is high. What we told our shareholders is that we will engage with the government to support the government.
He further said that with its two production lines coming on stream before the end of the year, the company would be in a better position to execute its plan of supporting the government to bring down the price of cement.
“If you have the volume and you reduce your price, and with the huge volumes that we have the price must come down. So, even if others are not ready to support the government, to support the reduction of the price of cement, they will be compelled because if they don’t reduce they will not be able to sell. That is why we are going to wait till the end of the year when these two lines are on stream. I will discuss with the minister and see how we can do that,” he added.
Earlier at the AGM, shareholders approved the proposal of the board of directors to pay the sum of N2.80 per share in 2022 compared to the N2.60 per share paid in the previous year of 2021.
A look at the audited financial statement revealed that the company’s revenue rose by 40.3 per cent to N361.9 billion in 2022 as against N257.3 billion recorded in 2021.
Also, Profit After Tax rose by 12.1 per cent to N101.1 billion compared to N90.1 billion recorded in 2021.
