BUA Cement has said that it hopes the completion of its two new plants this year would result in the lowering of cement prices in Nigeria. The company plans to add 6Mta of cement production capacity by the end of 2023 with the opening of Line 3 at its Obu plant and Line 5 at its Sokoto plant, according to Punch.
Contractors in the country have reportedly been complaining to the government over the high cost of cement, suggesting that imports would be cheaper. The Minister of Works is now in talks with Nigeria’s cement producers regarding reducing the price of their products.
“I understand that the minister is quite concerned, that the price of cement is high at almost NGN5000 per tonne. I appreciate where the government is coming from and the frustration from all the issues in the country,” said Abdul Samad Rabbi, chairman, BUA Cement. “The price of cement at NGN5000 is not high. If we look at the rate of the US dollar today, to import cement will be at NGN5000. The cement cost, insurance and freight to any port in Nigeria will be in the region of about US$100 a tonne. So, at US$100 per tonne, if you take NGN800 to US$1, then it will be NGN4000 per bag. Then the port cost, and transportation from the port.”
Mr Rabui is confident that the increased capacity will boost the availability of cement and drive down prices by the close of 2023.
