BUA has stated that cement prices will come down once production inputs become cheaper, blaming current price levels on FX pressure, energy costs, and transport expenses rather than profit margins.
At its AGM in Abuja, Chairman Abdul Samad Rabiu said recent stability in the foreign exchange market was already helping to ease cost pressures for manufacturers.
“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 added that the cement industry is heavily affected by exchange rate swings due to reliance on imported inputs and energy-related costs.
“Today, whatever rate I get, it’s the same rate anybody gets,” he stated, noting that improved FX stability now allows better long-term planning.
BUA’s Managing Director, Yusuf Binji, also explained that production costs are largely driven by energy, which accounts for about 60% of cement production expenses.
“As you know, the price of cement, rightly or wrongly, is a consequence of input costs,” Binji said.
He further highlighted sharp increases in gas and diesel costs, saying transport alone significantly affects retail cement prices.
Despite this, the company insisted it would adjust prices fairly as economic conditions improve and continues to expand production capacity to meet rising demand.
