Many Nigerians struggling with the rising cost of building materials may soon get some relief as BUA Cement says cement prices could reduce once production and transportation costs begin to ease.
Speaking during the company’s 10th Annual General Meeting held in Abuja on Thursday, BUA Cement Chairman, Abdul Samad Rabiu, revealed that the high cost of cement in recent months has been largely caused by foreign exchange instability, rising energy bills and expensive transportation — not excessive profiteering by manufacturers.
According to Rabiu, the recent stability of the naira and improvements in the foreign exchange market are already helping businesses plan better and reduce pressure on operating costs.
He explained that cement production in Nigeria still depends heavily on imported spare parts, fuel and other industrial inputs, making the industry vulnerable whenever the exchange rate fluctuates.
Rabiu noted that shipping costs and prices of some commodities have already started declining, giving hope that cement prices may eventually follow the same trend.
He also defended the Federal Government’s forex reforms, saying the new system has made access to foreign exchange more transparent and predictable for businesses.
“Manufacturers can now plan several months ahead because the exchange rate has remained relatively stable,” he explained.
BUA Cement’s Managing Director and CEO, Yusuf Binji, also shed more light on why cement prices have remained high across the country.
According to him, energy alone accounts for about 60 percent of cement production costs. He disclosed that the company’s monthly natural gas expenses jumped from around N4 billion to as high as N16 billion after the naira devaluation.
Binji added that diesel prices also surged sharply due to global tensions in the Middle East, affecting the cost of transporting cement nationwide.
He explained that transportation now contributes heavily to the final market price of cement because the company delivers products using diesel-powered trucks.
The BUA boss, however, dismissed claims that cement currently sells for as high as N13,000 to N15,000 per bag in many parts of Nigeria, insisting that prices remain lower in several regions.
Despite the economic challenges, the company says it is still expanding operations across the country.
Binji revealed that BUA Cement is completing a new production line in Edo State and planning another in Sokoto State, projects expected to increase the company’s production capacity to about 23 million tonnes annually by next year.
The company also disclosed that it has invested massively in transportation, purchasing 500 specialised trucks to support cement distribution for major infrastructure projects across Nigeria.
BUA says it remains committed to making cement more available and affordable as demand continues to grow due to ongoing road and infrastructure development projects nationwide.
The company also announced a final dividend payout of N10 per share to shareholders for the 2025 financial year.
