West Africa’s top cement producer, BUA Cement Plc, has refuted claims of a purported increase in the price of its cement to N300 per bag.
The company in a statement sited by Business A.M, informed the public, distributors, and stakeholders that it has not increased its cement price and does not have any intention of making such move in the nearest future, barring any material, unforeseen circumstances.
According to BUA, retailers are largely responsible for the current price hike in market prices, taking advantage of increasing cement demand to generate maximum profits which are relatively higher and unfavourable to consumers when compared to the ex-factory prices of cement.
Commenting on the high demand and current insufficient supply levels of the highly valued building material, BUA explained that it does not believe the solution lies in an increase in ex-factory prices of cement. The company further stressed that the price hike of major commodities at this current period especially for a product for which all raw materials are locally sourced is wrong considering that Nigerians are still trying to recover from the economic consequences brought about by the covid-19 pandemic.
“We stand by our previous statements that the timing is not right for any increase in the price of major commodities whilst we work towards ramping up our production capacity to ensure that commodities like cement remain accessible and affordable for our consumers,” it said.
The company also enjoined and appealed to its distributors to ensure there are no further arbitrary increases or excessive profit taking in the retail price of cement.
Finance January 10, 2020