*Cross-sections of cement dealers believe the Management of BUA Cement Plc owes Nigerian consumers apologies for their failure to keep to their words by playing to the gallery with the announcement to sell cement for N3,500 per bag, stating that the pointless excuse of the Management of BUA Cement smacks of a mockery of the Present Bola Ahmed Tinubu-led administration in the country聽

Isola Moses | 绿帽献妻

Cross-sections of Nigerians have expressed reservations about the inability of BUA Cement Plc to keep to its earlier promise of reducing the price of cement to N3,500 in the West African country.

This is coming on the heels of a recent statement credited to Alhaji Abdul Samad Rabiu Chairman of BUA Cement, in which he said that cement dealers frustrated his company鈥檚 plan to sell cement at N3,500 per bag to Nigerian consumers.

绿帽献妻 reports BUA Cement, in a statement isued October 2023, titled: “Reduction in Prices of BUA Cement”, had said: “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 in order 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.”

Rabiu, however, in giving an excuse while speaking at the company’s 8th Annual General Meeting (AGM), in Abuja, FCT, said that while BUA Cement Plc sold over a million tonnes of cement to dealers at N3, 500, per bag, with the intention that they would pass the benefits to consumers, the dealers sold a bag of cement to consumers at between N7,000 and N8,000.

According to him, BUA Cement could not stop the dealers whom he said made huge profits from the high margin because the company had no control over prices in the open market.

The Chairman of BUA Cement argued that the Naira devaluation and the fuel subsidy removal also played roles in making the policy unsustainable.

However, some stakeholders roundly faulted the position of the Chairman of BUA Cement, stating that he merely played to the gallery when he made the statement in writing, in 2023, after meeting with President Bola Ahmed Tinubu, in the State House, in Abuja, FCT, that his company would sell cement at 3,500 per bag to consumers as mark of patriotism.

Speaking on the failure of the company to honour its pledge in this regard, Kayode Animashaun, a major player in the cement business, stated that cement manufacturers in the country have deliberately refused to bring down the prices of cement, and instead have resorted to playing to the gallery, Nigerian Tribune report said.

BUA鈥檚 attempt to demarket competitors with falsehood in media space

Animashaun reportedly said: 鈥淭he recent excuse advanced by the Chairman of Bua Cement is unacceptable. There is no way dealers would buy at 3,500 and sell at 8,000.

鈥淚t is a feeble attempt at giving a dog a bad name to hang it. We understand that gimmick they play most time.

鈥淚t is, indeed, a regime for de-marketing among the major players in the industry. The big players want to outshine each other and one of the ways they do it is to make statements in the public that are not in tune with the reality on the ground.鈥�

鈥淚t is a fraudulent regime and one that is laced with deceit. I can bet that Bua Cement played to the gallery and possibly gained market share.

鈥淭hey knew they were not going to implement the proposed price regime but they saturated the media space with the falsehood that cement was going to be sold at 3,500 per bag.

Claim of N3,500 per bag of cement to sell at N8,000 impossible, say distributors

This was corroborated by Ahmed Magaji, a stakeholder in the cement distribution value chain across the country. According to him, what is happening is a price war between the major players in the sector.

鈥淭here is no way dealers would get a bag of cement for 3,500 and sell for 8,000. It is absurd. Don鈥檛 forget that most of us dealers buy on credit and remit monies when we come for a new stock.

鈥淣ow here is the trick, do you think the manufacturer would continue to sell to us when they know that we are selling at 8,000?

鈥淭he position of Bua Cement does not add up. They are trying to shift blame, which is very common with these businessmen.鈥�

Price wars and profit maximisation by cement companies

According to a source who works for one of the major cement companies in Nigeria, he stated that there is an ongoing price war between the major players in the sector.

鈥淗e further added that these players are out to maximise profit, and it is common for them to push certain narratives in the public space.

鈥淭he case of BUA Cement is one. They played a fast one on unsuspecting members of the general public, and they succeeded.

鈥淭he preference for BUA Cement rose astronomically. But now, people are beginning to ask questions and the chairman had to come up with a statement blaming the cement dealers.

鈥淲e know how it works in this industry. BUA Cement played a fast one. But let鈥檚 see how long they can sustain it.鈥�

In a similar vein, a cross-section of dealers interviewed thought that BUA Cement owes Nigerians apologies for their inability to keep to their words with regards to cement selling for 3,500 per bag.

A source who pleaded anonymity stated the position of BUA cement smacks of a mockery of the present administration.

BUA Cement should 鈥榗ome out clean鈥� instead of shifting blame to product dealers

The source also stated: 鈥淚 had expected the Management of BUA Cement to come out clean instead of shifting blame.

鈥淭hey knew they were playing games when they made the announcement that cement was going to be sold for the amount they quoted.

鈥淣ow that the chicken has come home to roost, they are in a tight corner and the best they could do is to shift blame to cement dealers.鈥�

鈥淚 think the Management of BUA Cement owes Nigerians apologies if they can鈥檛 achieve the 3,500 price for a bag of cement. That is the rational thing to do in this circumstance.鈥�

It would be recalled that BUA Chairman Abdul Samad Rabiu, in 2023, promised in a published statement that his company would sell a bag of cement at N3,500, in 2024, after meeting President Bola Ahmed Tinubu.

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