BUA Cement Plc has said the price of cement will decline when production and logistics costs reduce.
PrimeTimes Nigeria reports that the company said the recent rise in cement prices was largely driven by foreign exchange depreciation, rising energy costs and higher transportation expenses, rather than excessive profit-taking.
The Chairman of BUA Cement, Abdul Samad Rabiu, stated this on Thursday at the company’s 10th Annual General Meeting in Abuja.
Rabiu said recent economic reforms, especially the stabilisation of the foreign exchange market, were beginning to help manufacturers plan better and reduce cost pressures.
He explained that the cement industry remained exposed to exchange rate movements because it depended on imported spare parts, energy inputs and other production requirements.
“The good news is that things are getting better because of the stability. You see, the price of certain commodities is coming down, especially shipping prices,” Rabiu said.
He said the foreign exchange reforms, though initially painful, had created a more transparent market and removed distortions that previously made access to foreign currency difficult for businesses.
“Today, whatever rate I get, it’s the same rate anybody gets,” he said.
Rabiu added that manufacturers could now plan six to nine months ahead because exchange rates had remained relatively stable in recent months.
Rabiu said BUA Cement remained committed to improving operational efficiency and cutting costs through investments in energy infrastructure, local production and logistics.
He disclosed that the company generated revenue of ₦1.2tn in 2025, up from ₦876.5bn in 2024.
According to him, profit before tax rose by 367 per cent to ₦465.3bn from ₦99.6bn, while profit after tax increased by 381.7 per cent to ₦356bn from ₦73.9bn recorded in the previous year.
He said the board remained optimistic about Nigeria’s infrastructure outlook and the company’s ability to support national development while delivering long-term value to shareholders.
Speaking during a question-and-answer session, the Managing Director and Chief Executive Officer of BUA Cement, Yusuf Binji, said energy accounted for about 60 per cent of cement production costs.
He said this made the industry vulnerable to foreign exchange and energy price shocks.
“As you know, the price of cement, rightly or wrongly, is a consequence of input costs,” Binji said.
He explained that before the naira devaluation, the company’s natural gas expenses at one of its plants in Edo State stood at about ₦4bn per month, but later rose to ₦16 bn per month.
“We were paying close to ₦4 bn for natural gas every month. At a point, it went up to N16bn a month. It became very difficult to absorb all these costs,” he said.
‘Transport Accounts For Half Of Cement Price’
Binji also linked rising cement prices to higher diesel costs.
He said diesel delivered to the company’s factories rose from about N930 per litre in early March to N1,850 per litre within two months, significantly increasing distribution costs.
“If you consider that we have to deliver cement to our customers using our own trucks that are using diesel, even the price we are talking about, half of that price of a bag of cement is actually because of transportation,” he said.
The BUA Cement boss dismissed claims that cement was selling for between ₦13,000 and ₦15,000 per bag across the country.
“I have the prices from the northern region, and yesterday it was ₦11,100 a bag. So it is nowhere near the ₦13,000 or ₦15,000 a bag that was quoted,” he said.
He assured consumers that the company would continue to review prices in line with economic realities.
“As we have favourable economic conditions in Nigeria, especially costs that are related to our input costs, we will adjust accordingly. Whichever way it swings, we will try to make sure that we give prices that are fair and decent to Nigerians,” he said.