Cement makers in Nigeria are adding more burden to prospective homeowners in the country amid high inflation by increasing cement prices in response to overwhelming demand.
BUA Cement, which at N2.421 trillion is Nigeria’s fourth-biggest company by market value, is the latest in the fray having chosen to up the factory price of the product by about N200 per bag, contrary from an earlier vow not to raise prices.
The product now sells anywhere between N3000 and N4000, marketers narrates.
BUA Cement reported a profit after tax of N72.3 billion last year. The firm assured Nigerians in April that it would not scale up the factory price of its product.
“BUA Cement Plc, in the past two days, has been inundated with calls seeking clarification as to whether it is part of a purported price increase of N300 per bag,” its management said in a Twitter statement.
“BUA Cement wishes to inform the public, its distributors, and stakeholders that it has not and does not intend to increase its price of cement now or in the near future, barring any material unforeseen circumstances.
“Whilst we are aware that demand for cement is high with current supply levels not sufficient to meet this increased demand, we do not believe the solution lies in an increase in ex-factory price of cement, especially not at this period.”
In June, the cement maker in a statement to distributors reassured Nigerians of its fidelity to easing the economic meltdown by giving its due in the form of retaining cement price at its pre-July level as the country rebalances from its second recession in four years.
“BUA is also of the firm belief that the current retail prices of cement are higher than normal, hence our earlier communication not to increase ex-factory prices in the foreseeable future,” the document said.
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