Nigerians Challenge Dangote After BUA Chairman’s Promise to Reduce Cement Price From N5,000 to N3,000

Rabiu’s bold commitment to reduce the price of cement has garnered widespread attention. He has set an ambitious goal of reducing the price to as low as N3,000 per bag by January 2024, with government support behind this initiative. BUA Cement, which already sources 80 percent of its raw materials locally, is set to commission two new production lines, each capable of producing 3 million tons of cement annually. This expansion is expected to enable BUA Cement to produce around 17 million tons of cement annually, thereby potentially reshaping the Nigerian cement market.

Currently, cement prices in Nigeria fluctuate between N5,000 and N5,500 per 50kg bag, a situation that has posed significant challenges for both the construction industry and individual consumers. This pricing disparity has led to growing frustration among the public, who have welcomed Rabiu’s commitment to making cement more affordable.

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Social media has been abuzz with Nigerians voicing their concerns and directing questions at Aliko Dangote, the Chairman of Dangote Group, which is one of the country’s major cement manufacturers. Many are curious about whether Dangote Cement, with a production capacity of 51.6 million tons per annum and reported revenues exceeding $3.5 billion in 2022, is importing raw materials, which could be a factor in the pricing difference.

Financial experts and commentators have joined the conversation, advocating for increased competition within the cement market. Kalu Aja, a financial expert, has called for market liberalization and the possibility of allowing cement imports if they can offer lower prices. Such a move, he argues, would benefit Nigerian consumers by providing them with more affordable choices.

The rivalry between BUA Cement and Dangote Cement is expected to intensify as BUA Cement’s commitment to maintaining quality while offering lower prices may sway consumers. There is growing sentiment that it may be time for BUA Cement to take the lead in setting competitive prices in the industry.

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In light of these developments, Nigerians are hopeful that Rabiu’s promise to lower cement prices will result in tangible benefits for consumers, ultimately making housing and construction more affordable. This move is seen as a positive step towards breaking the monopoly of high cement prices in Nigeria and introducing healthy competition to the market.

As Nigerians eagerly await the fulfillment of these promises, the discussion surrounding accessible cement remains a hot topic, with many anticipating a more affordable construction material market.

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