BY AGENCY REPORTER
BUA Cement Plc has increased the ex-factory price of its cement product by N200 per bag.
The cement manufacturer, unveiled its new price increase from N2,800 to N3,000 per bag.
The market has reacted with surprise at the new price, as it contradicted BUA’s repeated public stance. The company having repeatedly asserted, within the year, that it had no justification to increase the price of cement, BUA even claimed, it was making enough returns.
Recall that BUA Cement, in various statements issued between April 24 and June 18 this year, refuted claims of increase in the ex-factory price of its cement products by N300 per bag.
One of the statements read in part, “the company had no plans to increase prices of its cement now or in the near future.”
In a statement issued on April 24, 2021, the company averred that, “the solution was not in an increase of ex-factory price at this period.”
The company, in the statement, “reiterated its stand that the timing was not right for any increase in the price of major commodities, especially not at this period whilst Nigerians are still trying to recover from the economic consequences brought about by the Covid-19 pandemic – especially for a product for which all raw materials are locally sourced.”
On June 17, 2021, BUA Cement had issued also issued a statement titled ‘No Further Increase in the Price of BUA Cement’, which was said to be in response to numerous clarification requests from its distributors and the public that the company was not seeking to increase the ex-factory price of its cement.
It read in part, “We are aware of the feedback and outcry from the public, and the government on the high retail price of cement in a period of economic recovery. BUA is also of the firm belief that the current retail prices of cement are higher than normal, hence our earlier communication not to increase ex-factory prices in the foreseeable future.
“As a responsible corporate entity, we refuse and reject associations with any actions that are deemed capable of projecting any industry we operate as a cartel. Hence, whilst we respect that the said company has decided to increase their prices, we are not questioning the reason(s) why, but would like to make clear BUA’s position on a price increase.
“The timing is not right for any increase on BUA’s part, and we do not have any justifiable business reason to increase our prices (ex-factory) anytime soon. We therefore urge our distributors not to panic as well as not engage in any arbitrary hike in the retail price of BUA Cement.”
The increase in the company’s ex-factory price of cement has generated ripples among distributors, retailers and consumers across the country, with many wondering at the sudden change of mind of the manufacturer.
In his reaction to the price increase, a cement distributor in Kano, Alhaji Sadiq, wondered why BUA Cement changed its cement price, contrary to expectations and its promise.
“I don’t understand why BUA did this increase at this particular time. The chairman of BUA, Abdulsamad Rabiu, personally promised us that his company will not increase the price of its cement. Honestly, this is not good for our business and the industry,” he lamented.
Another cement distributor based in Asaba, Delta State, Sunday Odogwu, expressed surprise at the price increase by BUA Cement, despite all his repeated promises of no further increase in the price of BUA cement.
Odogwu said, “BUA told us several times before in their statements to distributors that they are not ready to increase their cement price. The last notice was just last month, (June). Why are they doing this now? It is so not fair, and we are disappointed.
“Initially, we believed the management of BUA as having sympathy for the populace.”
