In the face of rising inflation that resulted in over 40 per cent hike in the price of cement in Nigeria, the country still remains the place where you can get the cheapest price of the building commodity in Africa.
This was made known few weeks ago by the Chairman/Chief Executive Officer of BUA Group, Abdul Samad Rabiu while having fielding questions form journalists in Abuja.
According to him, the price of cement per 50kg of cement bag rose by more than 40 per cent from N1,400 to N2,350 and has since hovered between N2,200 and N2,300, noting that the price remains the most competitive when compared to other countries in Africa.
“I do not believe that you can see a $100 for cement anywhere in Africa today. So, the price is not expensive, it is very competitive compared to what other countries are selling but again you would not see it because it is priced in Naira. Also if you look at the price regime from five years ago to what we have today, you would see that the price of cement is more or less cheaper than what it was then.
“We are quite aware that Nigerians are suffering because the economy is not at its best, the challenges are there but again if you have an outfit you have to ensure that you survive,” he noted.
He also jettisoned the possibility of price reduction, noting that he does not foresee any possibilities of price reduction in the near future.
“So I do not believe that it would be realistic to say that there will be any price reduction for now. What we should be hoping for is to say that there is not going to be price increase. We are working very hard to ensure we maintain the price that we have. Although we have to be realistic that there are lots of inputs that may necessitate price increase but it will not be much.
If you look at the price of cement today, vis-a-vis the price cement is selling in other countries, even in Africa, in terms of dollars, you would see that the price of cement in Nigeria today is probably the cheapest. The price we are selling today translates to less than $100 per tonne.”
It will be recalled that in August last year, the price of cement skyrocketed suddenly. The development attracted gale of criticisms from people, most especially the stakeholders who believe that it would have adverse effect on the building construction in Nigeria.