A cross-section of Nigerians have expressed reservations about the inability of BUA Cement to keep to its promise of reducing the price of cement in the country.
This is coming following statement credited to the Chairman of BUA Cement, Abdul Samad Rabiu, where he stated that cement dealers frustrated his company’s plan to sell cement at N3,500 per bag to Nigerians.
Speaking at the 8th Annual General Meeting of the company in Abuja, Rabiu, said that while his company sold over a million tons of cement to dealers at N3,500, per bag, with the intention that they would pass the benefits to end-users, the dealers sold a bag of cement to consumers at between N7000 and N8,000.
According to him, BUA Cement could not stop the dealers whom he said made huge profits from the high margin because the company had no control over prices in the open market.
He added that the naira devaluation and the fuel subsidy removal also played roles in making the policy unsustainable.
But some stakeholders faulted the position of the chairman of BUA Cement stating that he played to the gallery when he made the statement that cement would be sold at 3,500 per bag.
According to Kayode Animashaun, a major stakeholder in the cement business, stated that cement manufacturers in the country have deliberately refused to bring down the prices of cement and instead elected to play to the gallery.
“The recent excuse advanced by the chairman of Bua Cement is unacceptable. There is no way dealers would buy at 3,500 and sell at 8,000. It is a feeble attempt at giving a dog a bad name to hang it.
“We understand that gimmick they play most time. It is indeed a regime for de-marketing among the major players in the industry. The big players want to outshine each other and one of the ways they do it is to make statements in the public that are not in tune with the reality on the ground.
“It is a fraudulent regime and one that is laced with deceit. I can bet that Bua Cement played to the gallery and possibly gained market share. “They knew they were not going to implement the proposed price regime but they saturated the media space with the falsehood that cement was going to be sold at 3,500 per bag.”
This was corroborated by Ahmed Magaji, a stakeholder in the cement distribution value chain across the country. According to him, what is happening is a price war between the major players in the sector.
Magaji noted that: “There is no way dealers would get a bag of cement for 3,500 and sell for 8,000. It is absurd. don’t forget that most of us dealers buy on credit and remit monies when we come for a new stock.
“Now here is the trick, do you think the manufacturer would continue to sell to us when they know that we are selling at 8,000? The position of Bua cement does not add up. They are trying to shift blame, which is very common with these businessmen.”
Recall that BUA Chairman Abdul-Samad Rabiu in 2023 promised that his company would sell a bag of cement at 3500 in 2024 after meeting President Bola Ahmed Tinubu.