BUA Cement Predicts Price Drop as Input Costs Ease

At BUA Cement Plc's 10th Annual General Meeting in Abuja, Chairman Abdul Samad Rabiu announced that cement prices are expected to fall when input costs decrease, particularly due to stabilizing foreign exchange rates. He noted that the cement industry is highly sensitive to exchange rate fluctuations, as it relies on imported spare parts and energy inputs.

Rabiu highlighted that the naira's devaluation has created challenges for manufacturers, with costs for natural gas at their Edo State plant rising from N4 billion to N16 billion per month. Managing Director and Chief Executive Officer Yusuf Binji explained that energy costs account for 60% of cement production costs, making the industry vulnerable to foreign exchange shocks.

He also refuted claims that cement prices are as high as N13,000 to N15,000 per bag, asserting that prices remain lower, particularly in the northern region, where it is around N11,100 per bag. BUA Cement aims for a revenue of N1.2 trillion by 2025, with a profit before tax of N465.3 billion.