The Chairman of BUA Group, Alhaji Abdul Samad Rabiu, has shared his thoughts on what he believes Nigerians should do in order to crash cement prices.
Speaking to the News Agency of Nigeria in Abuja today, Rabiu opined that cement prices will crash if Nigeria has more producers. Explaining further, he noted that Nigeria currently has three major cement producers – Dangote Cement, Bua and Lafarge, with a combined capacity of 30 million tonnes per annum. This combined capacity does not match with the rising local demand.
In this light, Rabiu opined that with increased production by additional companies, the prices of cement would tumble. He added that, although increased number of cement producers would mean more competition for him, the interests of the country and that of its people were paramount.
On this basis, he urged the Federal Government to license more cement manufacturers with a view to meeting local demand.
Commenting on the recent development, Rabiu said: “The high price of cement is of a great concern for me; the price is actually high. We are 210 million or 220 million people, 30 million tonnes of cement per annum is actually low for us.
“No one can really control the price because it depends on demand and supply. We are trying hard to ensure the price is not as high as it is now.
“Nigeria is growing with a huge economy; we need more plants on stream to cater to the rising demand of cement in the country.
“Egypt produces 85 tonnes of cement per annum and the demand of cement in that country is just 50 million tonnes per annum and that is why prices of cement in Egypt are the lowest on the African continent.’’
In a bid to contribute his own quota to national development, the business mogul informed stakeholders and the general public that BUA’s third cement plant in Sokoto would be inaugurated by the end of 2021 while other plants are currently under construction.