BUA Cement to drop cement price, offers shareholders N2.80kobo per share dividend

Abdul-Samad Rabiu, Chairman of BUA Group, stated that the company will lower its cement prices in order to prevent the government from approving the importation of cement into Nigeria.

Rabiu made the remarks in response to criticism around the price of locally produced cement in the country, which compelled Dangote Cement to explain why its products are priced at a certain cost.
The creator of BUA Cement stated that the company will enhance its production lines in order to lower the price of its products, as cement imports would be detrimental to the country.

According to Rabiu, who spoke at BUA Cement’s Annual General Meeting on Thursday, BUA Cement expects to raise production capacity by at least 40% to 70 million tonnes before the end of the year.

“By the end of the year, we intend to have two more production lines online, increasing our production capacity by at least 40% to 70 million tonnes,” Rabius said.

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“The idea behind increasing production capacity is to see how we can lower our prices to support the government’s efforts, because importation is not the best solution.”In Nigeria, the average price of cement is N4,500, which converts to N90,000 per tonne or $100. So, if the government threatens to start importing cement, it will cost them much more since the currency is now high, and when you bring it through the ports, you must pay taxes, trucking fees, and other levies, all of which would increase the price.”

Meanwhile, BUA Cement has declared a dividend of N2.80 kobo per share for the fiscal year 2022, an increase from the N2.60 kobo paid out the previous year.