Price Of Cement Drops Drastically Below 3500

Nigerian billionaire company BUA Cement  signs deal to build gas plant Sokoto plant commences operation With the start of operations on Monday, December 18, 2023.

The plant has a capacity of 3-million-metric-tonne multimillion-dollar project in the country.

There are speculations that the new plant would trigger a possible reduction in cement price

A significant milestone in the company’s strategic expansion plans. The project is a multimillion-dollar expansion project with a 3-million-metric-tonne capacity per year, led by Nigeria’s billionaire.

Newly inaugurated Bua Cement’s Sokoto plant Line 5 represents a significant milestone for the company.

The Sokoto cement plant Line 5 demonstrates BUA Cement’s dedication to its expansion goals and brings the company’s installed capacity closer to the estimated 17 million metric tons annually.

As soon as ongoing projects are finished, the company aims to reassess prices in Q1 2024.

It added that BUA Cement is well-positioned to contribute more significantly to the infrastructure and building development of Nigeria thanks to its increased manufacturing capacity.

Strong financial record Under Rabiu’s direction, BUA Cement posted strong financial results for the first nine months of 2023.

In the first nine months of 2022, the company’s revenue increased to N335.86 billion from N262.6 billion.

Two months after price reduction, experts speak on why BUA cement continues to sell above N5,000/bag Concurrently, the profit after tax escalated from N74.01 billion to N76.06 billion, thereby reinforcing its standing as a significant cement manufacturer in Nigeria and a notable cement producer in Africa.

This comes after the BUA Group took a significant step in crashing the price of their cement from N5,500 to an ex-factory price of N3,500 per bag. Legit.ng, however, reported that the cement has continued to be sold for N5,000 and above in several regions of the country.

Following the announcement of a reduction in the ex-factory price to N3,500 in October, retailers are still selling a bag of BUA cement at the previous market price, defying the expectations of builders and other consumers.

It was earlier reported that marketers were selling the price of BUA cement above N5,000 a few days after the announcement.

According to recent findings, a 50kg bag of BUA cement costs, on average, N5,500 in the marketplaces.