By Audrey Lotchukwu
SUN 25 APRIL, 2021-theGBJournal- BUA Cement, second largest producer of cement in the Nigerian market, has dissociated itself from purported increase in ex-factory prices of cement in the country following persistent calls from stakeholders, distributors and the public seeking clarification.
Reports had suggested that company was part of grand plot to increase the price of cement to N300 per bag, but the company denies it and suggested that recent price levels are induced largely by cement retailers.
The company today said, in a reassuring statement seen by theGBJournal, that ‘’it has not and does not intend to increase its price of cement now or in the near future barring any material, unforeseen circumstances.’’
‘’Whilst we are aware that demand for cement is high with current supply levels not sufficient to meet this increase demand, we do not believe the solution lies in an increase in ex-factory prices of cement, especially not at this period,’’ the company said in the statement signed by its management.
BUA’s management said they are convinced that any increase in prices of major commodities at a time like this is not right- whilst Nigerians are still trying to recover from the economic consequences brought about by the COVID-19 pandemic-especially for a product for which all raw materials are locally sourced.
The company said they are aware of the fact that there is huge difference in the ex-factory prices of cement and the retail market prices of cement, which is mostly because of retailers taking advantage of increased cement demand to make maximum profits.
‘’Thus, an increase in ex-factory prices will be inadvertently passed down to the consumers,’’ BUA said, while reiterating their firm position that the timing is not right for any increase in major commodities.
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