By Glam & Essence
BUA Group, on Sunday, announced a reduction in the price of cement from N5,000 per 50kg bag to N3,500,in response to the concerns raised by the Minister of Works, Dave Umahi, about the high cost of cement in Nigeria, when compared to other parts of the continent.
This move by Bua Group came not too long after it was alleged that Dangote cement has reduced it price to N2700 per 50kg bag,one its spokesperson, Mr Tony Chejieni has since debunked.
Bua Group’s new price change has stirred up a price war in the building materials and infrastructure sector, where three of the major cement producers namely Dangote, BUA Group and Lafarge are the major producers of the product available in the market.
Since BUA Group announced the price reduction of cement by about 30%,industry players have been in shock, while other top producers are yet to react to Bua Group’s new price change.
Meanwhile,dealers in cement are yet to effect a change in price ,which still stands at 5000,claiming the price change by these producers is merely for media hype.
Many of them are still selling at 5000,as they claim that the stock in their warehouse was purchased at the old price before the new price.
While some have hailed the reduction in cement price by Bua Group, some others have not embraced it, seeing it as a worrisome development in view of how the larger market operates.
But Kunle Olubiyo, the President of Nigeria Consumer Protection Network said the BUA cement price review would help reduce the 20 million housing deficit in Nigeria.
According to him, “The recent price war in the Cement Sub Sector is a welcome development in the spirit of market competition.
“It is also good for the public, the off-takers and end users customers of the products.
“This development, apart from reducing the cost of construction of road, housing and other products that require cement as feedstock, will help in reducing the housing deficits in Nigeria, create jobs, create wealth while at the same time bring about peace as the productive energy of idle youths population would be productively and constructively engaged”, he stated.