Business

We Reduced Our Cement X- Factory Price To N3500, But Other Players Took Advantage Of Our Gesture’ -BUA Group

Published

10 months ago

February 26, 2024

We Reduced Our Cement X- Factory Price To N3500, But Other Players Took Advantage Of Our Gesture’ -BUA Group

The Group Executive Director of BUA Group, Kabir Rabiu, has reaffirmed that there was a price reduction for BUA cement from N5,500 to N3,500 per bag, with take-off date for the new rate from October 2nd, 2023.

Kabir Rabiu, while reacting to the question on if ‘the BUA Cement price bonanza was actually delivered or not’ in ARISE News segment of the ‘MACRO ECONOMICS OF CEMENT PRICES’, within the wider state of the economy, said the price reduction was carried out from October 2nd, 2023 in line with the commitment of Alhaji Abdul-Samad Rabiu, Chairman of the BUA Group to ensure the accessibility and affordability of the product for Nigerians.

According to him, “Federal Government can only do so much, but without the support of the other producers and middlemen being called to order, the average Nigeria will suffer”.

He said: “BUA cement price reduction actually did happened. Our chairman made the commitment, and we actually fulfilled the commitment by running it for five months.

“We reduced our cement across our plant to N3500, but that was actually x-factory price.

“But, as you know industries such as cement in Nigeria, when we do this kind of commitment, we were expecting other players to come along because if you look at the industry where we are operating our market share of 30 -32% and for us to make this gestures, other players were not doing it, and turn out to be very difficult for it to be fully implemented.

“And so, we ran the programme for almost five months, and because other players did not follow suit the distributors and the middleman began to take advantage of our gesture.

So, what happened was that even though we were selling the cement at N3500 in order to support the economy and the users, there was no direct benefits at least to the end users because other players were selling at previous higher prices.

And with that it turn out to be increasingly difficult for us to continue, and whilst we were doing that the cost began to go up, and we were forced to change our position a little bit.

And while we were doing that we also discovered that some of our plants had some issues and that reduced production.

“We do not know whether it was by choice or it was a sort of maintenance, and so that put an enormous pressureon our cement supplies to meet the increasing demand and therefore, even widen the gap between what we were selling in the market xfactory and what the market was”.

It would be recall that Rabiu, Chairman of BUA Group, in conversation with State House Correspondents following a visit to President Bola Tinubu in Lagos last year, stressed that despite various challenges, BUA is determined to ensure the accessibility and affordability of the product for customers.

He said: “You know the price that we have set will be N3,500 per bag. You know x factory of course plus VAT and then delivered to customers depending on the region,”

As you know, the factories that we have; one is in Edo, the other one is in Sokoto state. So for example, if you want us to deliver cement to you from Sokoto say to Lagos from Adamawa or to Maiduguri, the distance is quite far. So dependent on the distance and dependent on the location. You know the price changes but we intend to keep that promise”

According to him, the cement company site in Sokoto that would be inaugurated by January 2024 is expected to further expand the market across the country.

“We anticipate a combined annual production volume of about six million tonnes from these sites, which we expect to significantly impact the market. While facing some challenges, we are actively working to address and resolve them,” Rabiu stated

@Daily independent

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Business

Dangote Hails Tinubu on Impact of Crude for Naira Swap Deal

Published

18 hours ago

December 21, 2024

Sahara Weekly

Dangote Hails Tinubu on Impact of Crude for Naira Swap Deal

…As Dangote Refinery partners MRS to sell PMS at N935 per litre nationwide at its retail outlets

Sahara Weekly Unveils That The Foremost entrepreneur and President of the Dangote Industries Limited, Aliko Dangote has commended President Bola Ahmed Tinubu for the positive impact of the naira for crude swap deal on the Nigerian economy, which has led to reduction in prices of petroleum products in the country.

To provide succour to Nigerians, Dangote recently reduced the price of Premium Motor Spirit (PMS) from N970 to N899.50 at its Refinery loading gantry and provided generous credit terms to marketers.

“To ensure that this price reduction gets to the end consumer, we have signed a partnership with MRS to sell petrol from its retail outlets nationwide at N935 per litre” he added. This price has already commenced in Lagos, and it will be offered nationwide from Monday.

In his statement, he called on other oil marketers such as the NNPC Retail and all other marketers, “to work with us to ensure that Nigerians enjoy high-quality petrol at discounted prices.”

According to him, “The Dangote Refinery is for the benefit of Nigeria and Nigerians. We will therefore continue to work with various value chain players to deliver high quality petrol at cheaper prices. Our aim is for all Nigerians to have ready access to high quality petroleum products that are good for their vehicles, good for their health, and good for their pockets.

Recall that in September, the Federal Executive Council (FEC) under the leadership of Mr. President approved the sale of crude to local refineries in Naira and corresponding purchase of petroleum products in Naira. The move, which commenced on October 1, led to reduced pressure on the dollar and ensured the stability of the local currency.

Dangote thanked Nigerians for their unwavering support and the government for creating an enabling environment for the domestic refining industry.

Business

Port Harcourt Refinery Stays Active: NNPC Denounces Sabotage Rumors

Published

1 day ago

December 21, 2024

Sahara Weekly

Port Harcourt Refinery Stays Active: NNPC Denounces Sabotage Rumors

NNPC Debunks Shutdown Rumors, Confirms Port Harcourt Refinery Fully Operational

The Nigerian National Petroleum Company Limited (NNPC Ltd) has dismissed reports circulating in certain media outlets claiming that the Old Port Harcourt Refinery, which was re-streamed two months ago, has been shut down.

In a statement released by Olufemi O. Soneye, the Chief Corporate Communications Officer of NNPC Ltd, the company clarified that the refinery is fully operational. The statement noted that the facility’s operational status was recently verified by former Group Managing Directors of NNPC during a site inspection.

“Preparation for the day’s loading operation is currently ongoing,” the statement confirmed, emphasizing that allegations of the refinery’s shutdown are baseless and intended to create panic or artificial scarcity in the fuel market.

NNPC Ltd urged members of the public to disregard such misleading reports, labeling them as the work of those seeking to exploit Nigerians.

The Old Port Harcourt Refinery has been in operation since its re-streaming, and the company remains committed to ensuring stability in the supply of petroleum products across the country.

Business

Nigerian Banks Donate Multimillion Naira Relief Materials to Jigawa Flood Victims

Published

2 days ago

December 20, 2024

Sahara Weekly

Nigerian Banks Donate Multimillion Naira Relief Materials to Jigawa Flood Victims

In a show of solidarity, the Committee of Banks in Nigeria has extended a helping hand to victims of the September 2024 floods in Jigawa State. On Thursday, a high-profile delegation led by Dr. Oliver Alawuba, Chairman of the Committee and Group Managing Director/Chief Executive Officer of United Bank for Africa Plc (UBA), visited Dutse, the state capital, to present relief materials to the state government.

The donated items, worth several million Naira, included essential food supplies such as rice and cooking oil, along with mattresses and beverages. Dr. Alawuba highlighted that the gesture aimed to alleviate the hardship faced by flood victims and support critical institutions, especially public hospitals, in their efforts to assist those affected.

“We stand in solidarity with the people and government of Jigawa State during this difficult time. This donation is our way of expressing empathy and supporting those who have lost loved ones, properties, and livelihoods,” Dr. Alawuba stated.

The delegation included notable banking leaders such as Mr. Roosevelt Ogbonna of Access Bank Plc, Dame (Dr.) Adaora Umeoji of Zenith Bank Plc, and Dr. (Mrs.) Nneka Onyeali-Ikpe of Fidelity Bank Plc, among others. Their collective presence underscored the banking sector’s commitment to corporate social responsibility and national development.

Governor Malam Umar A. Namadi expressed profound gratitude for the donation, describing the visit as a rare and commendable act of compassion. He assured the delegation that the relief materials would be judiciously distributed to the intended beneficiaries, emphasizing the importance of partnerships in rebuilding lives and communities.

The Committee of Banks also reiterated their commitment to supporting Nigerians during emergencies, drawing attention to previous interventions, including relief efforts during the 2011 and 2013 floods, the COVID-19 pandemic, and security initiatives like the Lagos State Security Trust Fund.

This humanitarian gesture reflects the collective resolve of Nigeria’s financial institutions to foster social and economic growth, making a meaningful impact in times of need.