In a recent comment, Abdul Samad Rabiu, the chairman of the board of directors of BUA Cement, named dealers as one of the reasons his company’s effort to crash cement prices to N3,500 per bag was halted.
Speaking at the 8th Annual General Meeting of the company in Abuja, Rabiu was quoted as saying that his company sold bags of cement at N3,500, but dealers exploited the situation, selling the same product at inflated prices of N7,000 and N8,000 per bag to Nigerians.
The billionaire also mentioned the foreign exchange rate, rising costs of operation, and the unwillingness of other manufacturers as reasons the company decided to reverse its N3,500 per bag price.
In response to the remarks of BUA chairman, Kayode Animashaun, a major stakeholder in the cement business, claimed that cement manufacturers in the country have deliberately refused to bring down the cement prices, Tribune reports.
Animashaun noted that the Rabiu claims are not valid.
His words:
Another, Ahmed Magaji, a stakeholder in the cement distribution value chain across the country, was quoted as saying:
TimesNow.com.ng reported that the effects of naira devaluation and high inflation have caused a 121% increase in cement production cost, which analysts say might trigger higher prices in Nigeria.
Cement manufacturers also said smuggling is rising in Nigeria, hampering the chances of selling cheaper products.
The manufacturers say the product’s price is higher in neighbouring countries than in Nigeria.
Proofread by Kola Muhammed, journalist and copyeditor at Legit
Source: TimesNow.com.ng
