Price war with Dangote looms as BUA Cement announces 36% cut
BUA Cement announced a reduction of its ex-factory cement price to N3,500/bag effective October 2, 2023, down from N5,000-N5,500, raising the spectre of a fresh price war with its rival Dangote Cement.
The company had last month disclosed its intention to reduce cement prices upon the completion of its new lines at the end of the year, in order to spur development in the building materials and infrastructure sectors.
“We have decided to bring the price reduction forward,” the company said on Sunday on social media platform X. “As a result, BUA Cement would now be sold at an ex-factory price of 3,500 Naira per bag so that Nigerians can begin to enjoy the benefits of the price reduction before the completion of our plants.”
It said upon the completion of the ongoing construction of its new plants, which would increase its production volumes to 17 million metric tonnes per annum, it “intends to review these prices further in line with our earlier pronouncements by the first quarter of 2024”.
BUA Cement said “all pending, undelivered orders which had been paid for at the old prices will be reviewed downwards to N3,500/bag in line with the new pricing from October 2, 2023”.
“Our licensed dealers are also enjoined to ensure that end-users benefit from this reduction in ex-factory prices as we will monitor field sales to ensure compliance,” it added.
