BUA Seeks Reduce Influence of Cement Oligarchs to Crash Price
BUA group seeks reduced influence of Nigeria’s cement oligarchs, asking Federal Government to licence more companies to crash the price and improve capacity to meet local demand.
Chairman of BUA Cement Plc., Alhaji Abdul-Samad Rabiu said in a speech at the company’s annual general meetings of the shareholders today, saying that cement prices will crash if Nigeria has more producers.
To reduce what Nigerian consumers consider a higher price per bag on locally produce cement selling at N3,500, BUA Chief pitches the need for more companies to raise competition in the segment.
Nigeria currently has three major cement producers – Dangote Cement, BUA and Lafarge with insanely heavy influence on pricing due to low competition. Their combined 30 million tonnes per annum production does not meet rising local demand.
Based on their separate financials scorecard, Dangote Cement currently accounts for more than 60% of the industry’s market share. This has raised rivalry between BUA and Large as the former continues to ramp up capital expenditure to raise capacity.
Speaking further, Rabiu said at the annual general meeting of his company’s shareholders that with increased production by additional companies, the prices of cement would tumble.
He said; though an increased number of cement producers would mean more competition for him, the interests of the country and that of its people were paramount. He urged the Federal Government to licence more cement manufacturers with a view to meeting local demand.
“The high price of cement is of great concern for me; the price is actually high. We are 210 million or 220 million people, 30 million tonnes of cement per annum is actually low for us.
“No one can really control the price because it depends on demand and supply. We are trying hard to ensure the price is not as high as it is now.
“Nigeria is growing with a huge economy; we need more plants on stream to cater to the rising demand of cement in the country.
“Egypt produces 85 tonnes of cement per annum and the demand of cement in that country is just 50 million tonnes per annum and that is why prices of cement in Egypt are the lowest on the African continent,’’ Rabiu said.
He said that BUA’s third cement plant in Sokoto would be inaugurated by the end of 2021 while other plants were under construction.
BUA Seeks Reduce Influence of Cement Oligarchs to Crash Price
