Exorbitant Cement Costs and Issues Arising, by Rahma Oladosu

Exorbitant Cement Costs and Issues Arising, by Rahma Oladosu
Cement Brands in Nigeria
Cement Manufacturers in Nigeria


FIRS

Exorbitant Cement Costs and Issues Arising, by Rahma Oladosu

Inside per week, retail value for cement leapt from N5,000 to N10,000 out there because of sure financial realities. Even with out official assertion from producers or sellers, Nigerians started to throw tantrums as a result of the transfer is a ploy “to disclaim the widespread man capability to personal a house and change into his personal landlord.”

Nigerians have discovered the cement value state of affairs unacceptable since producers and uncooked supplies are indigenous.

“We discuss with our earlier pronouncements relating to our intent to cut back cement costs upon the completion of our new traces on the finish of the yr, to be able to spur growth within the constructing supplies and infrastructure sectors.

“As per the dedication made to cut back costs and following a periodic evaluation of our operations for effectivity, the administration of BUA Cement Plc needs to announce and inform our esteemed prospects, stakeholders, and the general public that efficient October 2, 2023, we’ve determined to carry the value discount ahead. Consequently, BUA Cement would now be offered at an ex-factory value of N3,500 per bag in order that Nigerians can start to get pleasure from the advantages of the value discount earlier than the completion of our crops.

“Upon completion of the continuing building of our new crops, which might improve our manufacturing volumes to 17 million metric tons every year, BUA Cement PLC intends to evaluation these costs additional according to our earlier pronouncements by the primary quarter of 2024.

“NOTE: All pending, undelivered orders which had been paid for on the previous costs shall be reviewed downwards to N3500/bag according to the brand new pricing from October 2, 2023. Our licensed sellers are additionally enjoined to make sure that end-users profit from this discount in ex-factory costs as we are going to monitor discipline gross sales to make sure compliance,” this was assertion from BUA group within the first week of October 2023 which at put many within the seventh heaven.

Efficient instantly, a bag of cement was speculated to promote at N3,500. Although the announcement even steered an extra discount this yr, retailers on the time expressed skepticism. In keeping with them, transportation price alone is not going to enable retail gross sales to be at N3,500 with N5,000 being a extra reasonable value to be able to get a return on funding.

Learn Additionally:

Welcoming 2024, Cardinal Stone reported that cement costs this yr will stay excessive regardless of a slash in costs by BUA because of producers searching for to offset operational prices, volatility within the foreign exchange market and excessive inflation. With the present costs, it’s protected to say that we’re leaving the truth of the report.

It nevertheless additionally projected a rebound within the sector’s efficiency in 2024 based mostly on the rise of infrastructure finances to N1.32 trillion, creation of the Infrastructure Help Fund (ISF) by the Presidency, energetic implementation of the African Free Commerce Settlement (AfCTA), elevated manufacturing capability, and many others.

Present Costs of Cement

The Nigerianprices.com cited the present value of cement per bag between N6,200 and N8,200 placing the imply value at N8,000 whereas wholesale is averagely N4,200,000 per trailer load. Retail costs for various model are:

Dangote cement: N9,900 – N10,500
Lafarge cement: N9,100 – N10,500
BUA cement: N9,900 – N10,500
Elephant Cement: N9,200 – N10,500
Ashaka Cement: N9,900 – N10,500

Wholesale costs (per 50kg bag) in line with similar manufacturers:

Dangote Cement: N8,000 – N11,300
Lafarge Cement: N8,000 – N10,440
BUA Cement: N8,000 – N11,000
Elephant Cement: N8,000 – N10,400
Ashaka Cement: N8,000 – N11,000

Issues Arising

To regulate the astronomical rise in value of cement, the federal authorities and cement producers have agreed after rigorous engagement on a N7,000 to N8,000 per 50kg bag of cement tentatively relying to geographical location or proximity to manufacturing website.

For the settlement to see the sunshine of day, producers have urged the federal government to handle issues surrounding unhealthy roads, smuggling, excessive price of power, and the foreign exchange disaster, that are the key stumblingly blocks to the achievement of cheap costs within the trade.

The federal authorities has nevertheless pushed again on the problem of foreign exchange, saying cement is domestically produced and mustn’t have something to do with it. The federal government even threatened to open up the borders and permit importation if the cement producers don’t carry down their costs.

The current developments are geared in the direction of making certain that Nigerians transfer nearer to residing the dream of proudly owning a property, which is a part of human’s security and safety wants.

Read More

Read Previous

SADC military chiefs go to Goma amid clashes between DRC military and rebels

Read Next

BDC: Information on CBN Pointers on Bureau De Change

Leave a Reply

Your email address will not be published. Required fields are marked *