Despite the promise of a price reduction, the price of BUA Cement still retails at the old price between N5,300 and N5,500 in Lagos, according to findings by ThePressNG.
BUA Cement Plc through its Group Chairman, Abdul Samad Rabiu, announced a reduction in the ex-factory cost to N3,500 for every 50kg bag, starting from October 2, 2023.
He said this after a meeting with President Bola Tinubu at the State House, Abuja on Friday, September 15, 2023. recently
One week after it was expected to take effect, the revised price is yet to be implemented, with reports from several retailers and cement distributors confirming that the price remains unaffected.
Narametrics conducted a market survey on 17 cement retail stores in the Ikorodu region of Lagos revealing that BUA cement is presently available at prices ranging from N5,300 to N5,500 per bag.
When we inquired why the current retail price of BUA cement deviates from the price announced by the manufacturer, cement retailers noted that the costs of raw materials and production had not changed significantly enough to justify such a substantial reduction.
A cement vendor located at Parafa, Ikorodu, revealed that even though he heard about the announcement, the current price from the distributors remains the same.
According to this vendor, the prices are yet to trickle down to the retailers due to logistics as well as other operating costs on the part of the distributors.
The retailer, who sells at the rate of N5,400, also noted that BUA cement is not a competitive cement in Lagos compared to contemporaries such as Dangote and Elephant Cement.
Responding to the same question on why the price remains the same at the market, another retailer, whose depot is located beside Taramed Filing Station, Ikorodu, explained to ThePressNG that the prices have not reflected on the side of the distributor, forcing them to buy at the old price rate between N5,300 and N5,500.
Meanwhile, the same seller alleged that the announcement might only be for optics, citing that BUA might be attempting to “gain public favour with the announcement.”
She stressed that ever since the announcement of the reduction in the price of BUA cement, people have asked for the cement. However, they become disappointed when they find out that the price is still the same.
The third cement dealer located at Marvelous Estate, Itokum Road pointed out the patronage of BUA cement is rather low in the rainy season due to the time it takes to consolidate when used in making bricks. According to her, people prefer to opt for other products during the rainy season.
BUA Cement Plc made an announcement last week regarding its decision to reduce cement prices to N3,500 per bag, starting from October 2nd, 2023.
The cement giant disclosed this via a press release on its official X (formerly Twitter) account as seen by ThePressNG.
Here’s an excerpt from the press statement:
Meanwhile, prices in the retail market do not reflect the stated price by the company a week after the announcement.
At the time of this publication, ThePressNG attempted to obtain clarification by contacting BUA Cement Plc via email, the company has remained unresponsive and has not offered any comments or responses regarding the deviation from the initially announced N3,500 retail price.
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