Price of Cement to Crash Soon – BUA Chairman
Ismaila Chafe: Cement industries are actively working hard to reduce the price of the commodity to boost the nation’s housing and the construction sector.
The Chairman of BUA Cement, Alhaji Andulsamad Rabiu, told the State House correspondents after a closed-door meeting with the Acting President, Prof. Yemi Osinbajo, in the Presidential Villa, Abuja that plans are on to crash price.
He said the producers’ commitment to reduce the price of cement was in line with the Federal Government’s determination to meet the housing needs of Nigerians in no distance future.
According to him, the foreign exchange situation in the country and the high cost of Low Pour Fuel Oil (LPFO) are largely responsible for the escalating cost of cement in the country.
He, however, assured that some factors which led to the high cost of cement were being addressed by all stakeholders in the building industry.
He noted with delight that the foreign exchange situation had improved dramatically while “the cost of LPFO used by some cement companies including one of our own plants in Sokoto has also come down.
“Production requires quite a lot of energy. That is quite a significant part of the cost of cement production but has been addressed.
“The price of LPFO that we use has come down. I’m talking about Sokoto now.
“Of course, the other cement plants scattered all over the country are using gas which is actually much cheaper. But for Sokoto, for example, we are using LPFO and LPFO is quite expensive.
“We have to transport it either from Lagos or from Kaduna refinery if it is available. You know that impacts on the cost from time- to-time.’’
He gave the assurance that the three major companies producers in Nigeria were working very hard to see that the price of cement comes down in the very near future.
“So, I think we will see quite a reduction in the very near future,’’ he said.
Rabiu disclosed that he was in the State House to officially invite the acting president to commission BUA Cement Sokoto plant that has almost been completed.
“Well, I don’t think I’m here to discuss policies. Rather, the reason why I came here is to come and pay respect to His Excellency, the Acting President and to also solicit for his support in commissioning one of the projects that we are doing.
“Well, it is a project that we have actually almost completed. It is in Sokoto. It is Sokoto Cement and we are hoping to commission the plant very soon.
“We discussed that and he is looking into it and he’s promised to get back.”