BUA Finally Reveals When Nigerians Should Expect Cement Prices To Crash

The company explained that the recent increase in cement prices was mainly caused by the depreciation of the naira, rising energy costs and expensive transportation, rather than excessive profiteering.

Chairman of BUA Cement, Abdul Samad Rabiu, made this known on Thursday during the company’s 10th Annual General Meeting held in Abuja.

Rabiu noted that recent economic reforms, particularly the stabilisation of the foreign exchange market, were gradually easing pressure on manufacturers and improving business planning.

According to him, the cement industry remains highly dependent on foreign exchange because of imported spare parts, energy inputs and other production materials.

“The good news is that things are improving because of the current stability. Prices of some commodities, especially shipping costs, are beginning to drop,” he said.

He added that the foreign exchange reforms, though initially difficult, had created a more transparent system where businesses could now access forex at the same rate without distortions.

Rabiu said the relative stability of the exchange rate now allows manufacturers to plan operations several months ahead with greater certainty.

He further stated that BUA Cement was focused on improving efficiency and reducing costs through investments in energy infrastructure, local sourcing and logistics.

The company also announced strong financial performance, revealing that revenue rose to ₦1.2 trillion in 2025 from ₦876.5 billion recorded in 2024.

Profit before tax increased by 367 per cent to ₦465.3 billion, while profit after tax grew by 381.7 per cent to ₦356 billion compared to ₦73.9 billion in the previous year.

Rabiu expressed confidence in Nigeria’s infrastructure growth and BUA Cement’s role in supporting development while delivering value to shareholders.

During the question-and-answer session, BUA Cement Managing Director and Chief Executive Officer, Yusuf Binji, disclosed that energy accounts for about 60 per cent of cement production costs.

He explained that this made the sector highly vulnerable to fluctuations in energy prices and foreign exchange rates.

Binji noted that the company’s monthly natural gas expenses at one of its Edo State plants increased from about ₦4 billion to ₦16 billion following the naira devaluation.

He also linked rising cement prices to the sharp increase in diesel costs, revealing that diesel prices jumped from around ₦930 per litre to ₦1,850 per litre within two months.

According to him, transportation alone now contributes significantly to the final cost of cement because the company relies on diesel-powered trucks for distribution.

Binji, however, dismissed claims that cement currently sells for between ₦13,000 and ₦15,000 per bag nationwide, stating that prices in parts of northern Nigeria were around ₦11,100 per bag.

He assured consumers that BUA Cement would continue to adjust prices based on prevailing economic conditions and input costs.

“As economic conditions improve, especially the costs tied to production inputs, we will make the necessary adjustments to ensure prices remain fair for Nigerians,” he said.