NewStats: 3,263,872 , 8,181,700 topics. Date: Sunday, 08 June 2025 at 01:03 PM 436a2e

AbdulSamad Rabiu, the Chairman of BUA Cement, has said the intention of his company to sell cement at N3,500 in 2023 was frustrated by the actions of cement dealers.

Rabiu said BUA sold over a million tons of cement to dealers at N3,500 per bag, intending for these to be transferred to the end-s.

Speaking in Abuja, Rabiu noted that the dealers were selling each bag of cement to consumers for prices ranging from N7,000 to N8,000.

He mentioned that the company needed to discontinue the policy since its involvement was not intended to dealers financially.

He mentioned that BUA Cement was unable to regulate the dealers who, he claimed, were earning substantial profits due to the high margins, as the company lacked influence over pricing in the open market.

He said, “So, a lot of the dealers took advantage of that policy. Rather than the low prices to the customers, they were selling at even double the price we sold to them.

“Some were selling at N7, 000 and 8 000 per bag. They made a lot of money with a very high margin. I think we had sold more than a million tons at N3,500 before we realised what the dealers were doing.

“And then, because of the issues that Nigeria faced at the time about devaluation of the Naira last year and the removal of fuel subsidy, we could not continue that policy.

“We wanted that price to stay at that level but dealers refused. So, we could not sustain that simply because we did not want to be in a situation where we are subsidizing dealers.

“I’m referring to the point when the foreign exchange rate moved from about N600 to maybe N1,800 to the US Dollar. So, it became even more challenging and more difficult for us to actually sustain that price policy.”

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Vice President Kashim Shettima has described President Bola Tinubu as the most demonised politician in Nigeria. Shettima disclosed that his house.

https://dailypost.ng/2024/08/30/cement-sellers-frustrated-bua-from-selling-at-n3500-per-bag-rabiu/

Open a distribution point in every local government area. Then, whoever does not want to boycott dealers and get cement from your distribution points will have himself or herself to blame. The distribution points will also address the issues of hoarding and rebaging. If the manager of any of your distribution points diverts the branch's supply to a dealer, end-s can expose the manager by reporting unavailability of cement at the branch and the manager will be fired.

But can we know what it actually costs a dealer to get a bag of cement from your company (transportation included)? Some managers in the company may be doing dirty deals with those dealers. One dealer can monopolize available supply by tipping the manager of the manufacturing company. The tipping cost is later transferred to the end-s.

We should also put into consideration how landlords hike shop rent and state or local government authorities use thugs to collect unjustifiable levies from the traders who are already drained by rent. I'm not denying the selfishness and greed of traders. I just want us to balance the judgement.

k

The average Nigerian is fantastically corrupt, that's why we have and deserve the kind of leaders in this country

We have heard

2nd December 2024

Save the date !

1 million people gats die, before this country go better.

immortalcrown:
Open a distribution point in every local government area. Then, whoever does not want to boycott dealers and get cement from your distribution points will have himself or herself to blame.

Seems to me...

A more decent, fair and less money driven business man than his main competitor.

Middle men have mostly been a major bane in the Nigerian market.

Most are very greedy and want to make more money than even the producers, not minding the effects on the common man.

The sad reality however is you cannot entirely do without them.

They are that bitter pill that needs to be swallowed!

Sakamanje

immortalcrown:
Open a distribution point in every local government area. Then, whoever does not want to boycott dealers and get cement from your distribution points will have himself or herself to blame. The distribution points will also address the issues of hoarding and rebaging.

Do you know the logistics and cost involved in doing so?

One of the biggest problem we have is that our government are not serious. Your idea of distribution points should have been managed by the government while the company just supply the cement there. Government can select some few points in each States, pay for the rent and the cement company will send their sale rep to man the facilities and deliver the cement there.

Audit teams will visit the centers unannounced and examine the sale logs any inconsistence will lead to investigation of the sale rep there. If found guilty he or she will be dismissed and punished accordingly and the rest will fall in line.

Of course our government are so lazy and will never put effort to solve problems that the masses face unless solving such problems means that they will be able to steal more money from the state purse.

dettolgel:
Do you know the logistics and cost involved in doing so?

I think

Does the cost outweigh the long-term benefits? In such a business, you make decisions based on long-term effects.

The government fails you in electricity distribution, oil refinery, economic policies by the CBN, management of electoral processes, security and many more. What makes you consider the government reliable in managing cement distribution points?

immortalcrown:
Does the cost outweigh the long-term benefits? In such a business, you make decisions based on long-term effects.

I don't think the company would want to take up additional cost ontop cutting down the price of their goods. Government can shoulder that and given that this isn't a long term affair.

We knew that dangote will never give BUA a chance to reduce the price to ridicule his products.

But now that FG has given order for traders to reduce the cost of inflated products, we hope that things will fall into places.

dettolgel:
I don't think the company would want to take up additional cost ontop cutting down the price of their goods. Government can shoulder that and given that this isn't a long term affair.

How is it not a long-term affair?

S

When BUA refinery begins operation, we'll know the true price of fuel


BUA should please try and do copy paste model of all Dangote's products and let's know the true price of those products

Seems Monopoly is a curse to a Nation's economy

Bua you are not serious!

How will 1m tons of cement bring down the price of cement in Nigeria. The quantity is too small.


Flood the market with enough of cement at 3500 and see if the price will not crush

Kanixt:
Bua you are not serious!

How will 1m tons of cement bring down the price of cement in Nigeria. The quantity is too small.


Flood the market with enough of cement at 3500 and see if the price will not crush

I agree with you...

If he really wanted to crash the price of cement products he should have flooded the market with cheaper pricing. Gradually the price would have dropped.

But on the other hand and to be fair he said he was no longer consistent after other factors like increasing dollar rates began playing a significant role!

The same dealers might even be among end bad governernce protesters

Kanixt:
Bua you are not serious!

How will 1m tons of cement bring down the price of cement in Nigeria. The quantity is too small.

Flood the market with enough of cement at 3500 and see if the price will not crush

brain54:
I agree with you...

If he really wanted to crash the price of cement products he should have flooded the market with cheaper pricing. Gradually the price would have dropped.

But on the other hand and to be fair he said he was no longer consistent after other factors like increasing dollar rates began playing a significant role!

1.
Is he the only source of cement in Nigeria?

2.
Flood the market through who? Through the same accused dealers or through you?

Na lie abeg. As usual you lots will find a way to blame Nigerians. How much do they sell cement at the moment to dealers

Story upon stories that touch...what stops your company from going public with the new prize u are giving to dealers...if people know how much u are giving to dealers ..those selling above agreed price will be exposed

It is well...

Then set up your own direct sales system.

ingan:
interestingly enough that has always been the Nigerian problem. With no hope at sight . Courtesy of a corrupt system

The long chain of distribution added to greed is what’s causing it

Nigerians Messes Themselves Are Demons, They Aren't Really Different From Politicians, it's Just a Tiny Line