The management of BUA Cement Company has explained the reasons behind cement bags not selling at the promised ex-factory price of N3500 per bag.
Although the company said it honored its promise to reduce the price of cement to N3500, it accused the intermediaries and wholesalers of preventing the intended recipients, the end-users, from accessing the reduced price.
Recall that on October 2023, the Management of BUA Cement announced the reduction of ex-factory cement prices to N3,500 per bag, to take effect from Monday, October 2, 2023.
BUA Cement had made good on its word and didn’t stop slashing the price but also vowed that all due, undelivered orders which had been paid for at the old prices would be reviewed downwards to N3500/bag in line with the new pricing from October 2, 2023.
Five months later, BUA Cement and all other cement manufacturers rose to N12,000 to N13,000 per 50kg bag, a development that raised doubt on the purported reduction of the price of cement by the company considering that its product had never been sold to N3,500 since October 2023.
Following threats from some civil rights organisations to stage a protest against the company for non-implementation of its promised commitment and solemn vow to Nigerians to reduce the price of cement to N3,500 per 50kg bag, the company announced that the ‘no fulfillment’ was being hindered by market forces.
The company’s clarification followed a seven-day deadline issued by two civil society groups to its management, demanding the sale of cement at N3,500 per bag or face a demonstration.
Meanwhile, the executive director, Mr Kabir Rabiu had said that the company had actually sold their cement for three to four months at N3,500.
“We thought other players in the cement industry would join us in making the price of cement affordable.”
But according to Kabir, BUA was unable to maintain the discounted price of N3,500, as the intermediaries and wholesalers barred the intended recipients, the consumers, from accessing the slashed price.
