How Cement Dealers Frustrated Our Plans To Slash Cement Price To ₦3,500 ----- BUA Chairman
BUA Cement Chairman, Abdulsamad Rabiu, reveals how cement dealers hindered efforts to lower the price of a 50kg bag to ₦3,500, during the company’s 8th Annual General Meeting.
The BUA Cement Plc has explained how cement dealers frustrated its efforts to sell a 50kg bag of cement at N3,500.
Chairman of the company, Abdulsamad Rabiu spoke during the 8th Annual General Meeting on Thursday, noting that cement prices would have dropped to as low as ₦3,500 per bag were it not for large appetites of profiteering dealers.
According to Rabiu, the devaluation of the Naira and the fuel subsidy removal also played roles in making the policy unsustainable.
His words, “So, a lot of the dealers took advantage of that policy. Rather than pass 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 subsidising dealers."
“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 subsidising dealers."
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