The two major manufacturers of Cement in Nigeria, Dangote and BUA cement have agreed to reduce the country’s cement price by 50%, from the current price of N5500 per bag of cement to N2700.
By this gesture, the companies chairmen, Aliko Dangote and Abdul Samad Rabiu of Dangote Cement and BUA respectively, have claimed that the price crash of cement is part of their contributions to supporting the efforts of the Bola Tinubu administration towards affordable housing for all, and stabilizing the prices of essential commodities.
In a statement to the press issued recently, Rabui, announcing his company’s planned reduction of cement to the president while on a visit, said that would only follow the opening of two new plants of 3million tons operating capacity each to be commissioned at the end of the year, adding that the expectations could only materialize if the company sustains its local production of cement.
“Eighty per cent of the raw materials we use to produce cement in Nigeria are mainly limestone and gypsum, and of course, energy is part of it. Of course, we have gas in Nigeria,” he said.
“So we want to support the government; we want to support their efforts in ensuring that the prices of these commodities are brought down incidentally.”
Rabiu revealed that the two new plants to be inaugurated by Tinubu in 2023 would increase production capacity to 17 million metric tons.
Analysts say the planned price reduction by both BUA and Dangote Cement is a welcome development for the Nigerian economy, as it will be more affordable for construction companies and individuals. This could lead to an increase in construction activities and boost economic growth, adding that the whole idea reveals the beauty of competition.
The reduction is also expected to benefit consumers, making housing more affordable.
It would be recalled that over the years, there has been consistent business rivalry between Dangote and Rabui in all most all spheres of business with the BUA chief allegedly petitioning to the then President Muhammadu Buhari, detailing how policies of successive governments over the last two decades have “unduly” favoured his kinsman, Aliko Dangote.
But it now seems that with the coast cleared for genuine competition as it seems, the rivalry has once again heated up and the battle for cement supremacy between the duo has intensified.
As gruesome as this may seem for the two business moguls, consumers think that it spells good for them, and Nigerians are eager to see it materialize.
