THE CABLE
Some cement retailers in Lagos state and Ogun state have given reasons BUA Cement products are still sold above N5,000 per bag despite the company announcing a 36.4 percent cut in price on October 1.
BUA Cement had disclosed that the ex-factory price of its product will be reduced to N3,500 per bag from N5,500 – starting from October 2.
The company made the decision after Abdul Samad Rabiu, BUA Cement founder, met with President Bola Tinubu on September 16.
BUA Cement said its ongoing effort to increase production capacity to 17 million metric tonnes per annum (MTPA) before the end of 2023 made it possible for the company to reduce its ex-factory price for licenced dealers and end users.
However, three weeks later, the price of BUA’s cement has remained above N5,000 in some retail stores in Lagos and Ogun state.
Speaking to Olubukola Oluwadare, a cement retailer in an area in Ikorodu, Lagos, she said BUA sells the cement at N3,500 at its factory in Benin, however, retailers will have to visit the production site to buy the product at that price.
According to Oluwadare, BUA Cement representative said the company does not have enough trucks to distribute its products, so retailers have to hire trucks to load the cement…
