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Tag: BUA CEMENT

  • FG Meets Dangote, BUA Over Rising Cement Prices

    FG Meets Dangote, BUA Over Rising Cement Prices

    The Federal Government is set to convene a meeting with key cement manufacturers, including Dangote, BUA, and Lafarge, to address the surging cost of cement. 

    Minister of Works, David Umahi, expressed concern over the significant price increase, which has jumped from N4,000 to a range of N8,000 to N10,000 per bag in recent weeks. 

    Umahi emphasized the need to investigate the substantial gap between ex-factory and market prices and explore solutions to address the challenges faced by cement manufacturers.

    Orji Uchenna Orji, media aide to the minister, said: “Worried by the escalating cost of cement despite huge patronage by road and housing contractors to cement manufacturers, the Honourable Minister of Works, His Excellency Sen Engr Nweze David Umahi CON, has summoned an urgent meeting of all cement manufacturers in Nigeria”.

    Orji quoted his principal as saying that the disparity between ex-factory price and market price is huge.

    “It is common knowledge that the manufacturers have their challenges, which we shall look into, but from our findings, the disparity between ex-factory price and the market price is wide,” Umahi was quoted as saying.

    “We therefore need to look into the situation and other issues with a view to finding a common front.”

  • BUA Cement’s Price Reduction Will Boost Affordable Housing –Minister

    The Minister of Housing and Urban Development, Architect Ahmed Musa Dangiwa has commended the decision by BUA Cement Plc to reduce the price of cement to N3,500 from about N5,500.

    According to the minister, the gesture will reduce the cost of cement, which is a major cost in building construction.

    A statement by Deputy Director, Information, Federal Ministry of Housing and Urban Development, Salisu Haiba Badamasi Tuesday in Abuja, quoted Dangiwa as saying that BUA Cement Plc’s decision represents a substantial stride toward easing the financial burden on aspiring homeowners.

    He underscored that the soaring cost of cement has led to a drastic increase in house prices, making them unaffordable for the average Nigerian.

    Dangiwa emphasized that since assuming office, he has made promoting the delivery of affordable housing a top priority in line with the Renewed Hope Agenda of Mr. President

    “The escalating prices of building materials, especially cement, have placed a daunting obstacle on the path to homeownership for many Nigerians. BUA Cement Plc’s decision to reduce the price of cement to N3,500 is highly commendable. It reflects their understanding of the struggles faced by ordinary Nigerians and is a positive step towards making housing more affordable and attainable for all,” he noted.

    “I commend BUA Cement Plc for their socially responsible decision to reduce the price of cement. Accessible and affordable housing is a fundamental right, and this move by BUA Cement Plc will undoubtedly alleviate the challenges faced by our citizens. It demonstrates a shared commitment to improving the lives of our people and furthering the goals of sustainable urban development”

    The Minister added that the company’s initiative will not only benefit individual homeowners but will also stimulate economic growth, create jobs, and lift many Nigerians out of poverty by fostering affordable housing construction and infrastructure development.

    The minister urged other industry players to emulate BUA Cement’s example, urging them to consider the social impact of their decisions.

    He expressed the belief that collaborative efforts between the government and private sector entities are essential in overcoming the challenges related to housing affordability and ensuring the realization of decent living conditions for every Nigerian citizen.

  • Various prizes up for grabs in BUA Cement’s #WinWithTheKing promo

    As part of efforts to promote sales and reward brand loyalty, BUA Cement has launched its #WinWithTheKing promo.

    The #WinWithTheKing promo is the first of its kind by BUA since it was established.

    The promo which is expected to run for 83 days will see users of BUA Cement winning the company’s branded T-shirts, rechargeable lamps, TV sets, Generator sets, tricycles for carrying cement, and Android phones.

    Also, there is N16 million for 16 end users to win while the grand prize is a MG executive saloon car. 

    Unveiling of the promo on Thursday in Abuja, the Managing Director of BUA Cement, Engr. Yusuf Haliru Binji, said it was time that the company rewarded its loyal customers, launch sales and build brand awareness.

    Binji, who was represented by the Chief Financial Officer, Jacques Piekarski, said the promo is a way of showing its customers that they are important stakeholders to the giant stride the company is recording.

    He said: “With this promo, we want to reward our loyal customers, launch sales and build brand awareness.

    “We take a lot of courage to deal with our customers, nd distributors, they are very important to us and we take them seriously and we work hard to satisfy them and also to support them.

    “It’s important to have them loyal to us and also in line with the expansion of the company we need to ensure that our customers are going to continue with us and we need to reward them for that. We need also to use this to sustain our sales and continue to build our brand.”

    While stressing that the BUA brand has over time been proven to be the best, Binji said with the two new production lines starting operation by the first quarter of 2024, the company would be adding an additional 6 million to its daily production capacity.  

    “Currently, we are building two factories in Sokoto and Okpella, this will add 6 million from the beginning of next year, and we will have a total production capacity of 17 million a day. This is thanks to you customers for without you there will be no expansion,” he added.

    On his part, Director Marketing and Sales Nasir Ladan, reiterated that the promo is part of efforts to sustain sales and improve its market visibility.

    According to him, the #WinWithTheKing, is the frst in a series of promos that the company has lined up for the benefit of its customers.

    The objective of the promo is actually to reward our loyal customers and also sustain our sales, and our brand visibility, that is basically the objective of the promo.

    All the end users are eligible; those that are exempted are BUA cement staff, their relatives, and all those that have a role to play in the organisation of this sales promo. Every other use, every other stakeholder is eligible to play.

    “The target is actually the end users and all those who have one thing or the other to do with BUA cement.

    “The users of our cement are going to benefit from it,” he explained.

  • Dangote, BUA Cements spend whopping N204.925bn on power

    Nigeria’s two biggest cement factories, Dangote Cement and BUA Cement spent a whopping sum of N204.925 billion on fuel and power during the half year ended June 30, 2023.

    A look at the financials showed that Dangote Cement spent the sum of N157.020 billion during the half year 2023 as against N129.957 billion in 2022 representing a growth of 20.82 per cent.

    Following the high cost of sales, profit after tax grew marginally by 3.77 per cent to N178.603 billion for the half year 2023 as against N172.104 billion in 2022. The cost of sales grew by 18.80 per cent to N383.088 billion from N322.461 billion.

    Similarly, BUA Cement spent N47.905 billion on energy in the first half of 023, representing an increase of 9.92 per cent over N43.580 billion reported in 2023.

    Profit after tax was N63.616 billion in 2023 as against N61.363 billion in 2022, accounting for an increase of 3.67 per cent while the cost of sales stood at N114.943 billion in the half-year of 2023 from N97.503 billion in 2022, representing a growth of 17.88 per cent.

    Dangote Cement on the other hand complained that it recorded lower volumes due to surging inflation.  

    According to the company’s six months of unaudited results, sales volume for pan-African operations was up 11.6 per cent compared to 4.9Mt in the first half of 2022. The total pan-African volume accounts for 40.4 per cent of Group volumes in the half year.

    Chief Executive Officer of Dangote Cement, Arvind Pathak said:  “Dangote Cement delivered positive results in the first half of the year. Our Nigeria operations achieved a 22.6 per cent recovery in sales over the first quarter, which was impacted by the general elections and the cash crunch. However, the steep currency devaluation in mid-June slowed this volume recovery and increased the already inflated operating cost.”

    According to data, the profit after tax of these companies stood at N242.219 billion from N233.467 billion in 2022 representing a 3.75 per cent increase.

    The profits were impacted by the rise in production cost of sales which was driven mainly by an uptick in raw materials cost and cost of energy.

    The rising cost of sales swallowed much of the earnings following rising inflation and high exchange rate. The cost of sales for the firms stood at N498.031 trillion for the half year 2023 as against N419.964 billion in 2021, accounting for a growth of 41.15 per cent.

  • BUA Cement secures IFC’s $500m facilities

    In a bid to boost production and expand its operations, BUA Cement PLC has secured $500 million in financing from the International Finance Corporation (IFC).

    In a joint statement, IFC and BUA said the funding would enable the company to part-finance and develop two new, energy-efficient cement production lines at its plant in Sokoto State, in northwest Nigeria.

    The funding includes $160.5 million from the IFC, $245 million in syndicated loans from the African Development Bank (AfDB), the Africa Finance Corporation (AFC), and the German Investment Corporation, as well as $94.5 million from institutional investors.

    “The plants will run partly on alternative fuels derived from waste and solar power. Each will produce about three million tons of cement annually when complete, serving markets in Nigeria, Niger, and Burkina Faso,” IFC and BUA said.

    In a regulatory filing with the Nigerian Exchange Limited (NGX), BUA stated that it intends to utilize this facility to finance the ongoing expansion of its integrated cement plants in Kalambaina, Sokoto.

    “We are pleased to inform the NGX, our esteemed shareholders and the investing public, in line with our disclosure obligations pursuant to Chapter 17 of the Rulebook, that BUA Cement has achieved financial close in connection with the Financing to be provided by a syndicate of lending development finance institutions, led by International Finance Corporation (IFC), with participation from African Development Bank (AfDB), Africa Finance Corporation (AFC), and Deutsche Investitions – undEntwicklungsgesellschaft (DEG).

    “BUA Cement intends to utilize this facility to finance the ongoing expansion of its integrated cement plants in Kalambaina, Sokoto State, Nigeria.

    “The expansion will increase the plant’s capacity to 8.0 MTPA and as well as facilitate the development of other ancillary utilities.

    BUA has a production capacity of 11 million metric tons, and the new investment will add another 6 million metric tons.

    The new financing package will also allow BUA to replace some of its diesel trucks with vehicles that run partly on natural gas in a push to cut emissions, the statement said.