BUA Cement, one of Nigeria’s leading cement manufacturers, has announced the discontinuation of its price policy aimed at reducing the cost of cement for consumers. The decision comes after dealers failed to comply with the company’s recommended price, selling the product at significantly higher rates.
According to Abdulsamad Rabiu, Chairman of BUA Cement, the company sold over a million tons of cement to dealers at a subsidized price of N3,500 per bag, with the intention of making the product more affordable for consumers. However, dealers took advantage of the situation, selling the cement at prices ranging from N7,000 to N8,000 per bag, earning substantial profits.
Rabiu explained that the company’s inability to regulate the dealers’ pricing in the open market led to the discontinuation of the price policy. Despite efforts to control prices, dealers continued to exploit consumers, prompting BUA Cement to reassess its strategy.
The move has sparked concerns among consumers, who may face higher prices for cement in the coming weeks. Industry analysts predict a potential increase in construction costs, which could impact the overall economy.
BUA Cement’s decision highlights the challenges faced by manufacturers in regulating prices in Nigeria’s open market, where dealers often prioritize profits over consumer affordability.
