The BUA Group has finally increased its cement price by N200 weeks after raising the hopes of its customers.
There has been a surge in the prices of cement across the country as manufacturers try to pass the high cost of production to cash-strapped consumers, who are already battling with poor purchasing power, rising inflation and stuttering economic growth.
Following the increase, some distributors have accused BUA of betraying its own word after the cement company increased the retail price of its cement from N2800 to N3000.
Reacting to the development, chairman of BUA Group, AbdulSamad Rabiu had repeatedly asserted that his company does not have any justification to increase the price of cement as it is currently making enough returns.
In April, the cement maker had issued a statement refuting any claims of an increase in the ex-factory price of its cement products by N300 per bag, stating that “the company has no plans to increase prices of its cement now or in the near future”.
“BUA 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,” the statement had said.
Also in June, BUA issued another guidance to its distributors titled, ‘No Further Increase in the Price of BUA Cement’, where it reiterated that the company does not seek to increase the ex-factory price of its cement in the foreseeable future.
“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,” BUA had said.
“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.”
A market survey conducted in April showed that prices of cement have increased significantly across five states in the south-east compared to what was obtainable in 2020.
The report showed that cement prices have increased by 67 percent in these states.
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