Though the Group Chairman of BUA cement, Alhaji Abdul Samad Rabiu, meant well for Nigerians, but his intention is been allegedly arm-twisted by some powerful Northern leaders who were sympathetic to Dangote Cement and its Group Chairman, Alhaji Aliko Dangote.
Hence, despite the pronouncement and wide publicity of a price reduction of BUA cement brand by the Group Chairman, Abdul Samad
Rabiu, to N3,500 effective October 2, 2023, its retail price still remains at the old price of between N5,300 and N5,500, depending on the location of purchase across the country.
This state of affairs has raised questions in many quarters as to whether the company and it’s Group Chairman had a hidden agenda or the announcement was to scam unsuspecting Nigerians.
But while some cement dealers and construction engineers as well as consumers are speculating the cause of the delay in effecting the price change by the company, a disturbing information has surfaced why the company has reneged in its promise.
It was exclusively gathered that BUA Cement and its Group Chairman had really meant well for Nigerians but external forces are intervening in order to keep Dangote dictating the price of cement in the Nigerian market.
It was also gathered that immediately Alhaji Rabiu made the pronouncement to slice his BUA cement price to N3,500/bag of 50kg Alhaji Dangote was unsettled as he was not ready to compete at that price.
A source that pleaded for anonymity disclosed that Alhaji Dangote allegedly reported the situation to some northern leaders and pleaded for their intervention.
He added that Dangote even called Alhaji Rabiu on phone and scolded him for taking such action. The source said: “The chairman of BUA Group, Alhaji Abdul Samad Rabiu, came under massive pressure from Northern leaders, Northern elites, and northern elders after his company announced a price reduction of it’s cement.
“They said he was targeting Dangote, and was drawing bad blood. That he should increase back the price immediately if he wants peace, because Dangote is not ready or willing to reduce his own cement prices anytime soon.
“The pressure was so intense that Dangote phoned him, and insulted him badly, over his decision to reduce the price of his cement. Alas Alhaji Abdul Samad Rabiu bowed to pressure and revert back to the old price”. It would be recalled that BUA Cement Plc through its Group Chairman, Abdul Samad Rabiu, announced a reduction in the ex-factory cost of its cement to N3,500 for 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 and was followed by a press release on its official X (formerly twitter) account as seen by journalists and Nigerians.
Here is an excerpt from the press statement:
“We refer to our previous pronouncements regarding our intent to reduce cement prices upon the completion of our new lines at the end of the year, to spur development in the building materials and infrastructure sectors. As per the commitment made to reduce prices and following a periodic review of our operations for efficiency, the management of BUA Cement Plc wishes to announce and inform our esteemed customers, stakeholders, and the public that effective October 2, 2023, we have decided to bring the price reduction forward.
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.”
Meanwhile, prices in the retail market do not reflect the stated price by the company as at time of filing this report on Monday, October 16, 2023.