In a groundbreaking move set to have a profound impact on Nigeria’s economy, BUA Cement Plc has decided to reduce the price of its cement from N5,500 to N3,500 per bag, starting October 2nd, 2023. While you’ll agree that this is a bold move by the company, I’ll share 4 benefits Nigerians to gain with the development.
Benefits Nigerians Stand To Gain From the BUA Cement Price Reduction
Here are 4 benefits Nigerians stand to gain as BUA cement reduces their cement price:
1. Empowering Construction and Economic Prosperity
This reduction is poised to make cement more accessible to both consumers and businesses. It stands to potentially revitalize construction activity while spurring economic growth in the nation. How? Let me explain further.
When the price of cement is lowered, it becomes more affordable for individual consumers. In the context of home construction or renovation, this means that more people can now afford to buy cement for their building projects.
You’ll agree that lower prices make it easier for individuals to invest in their homes. In fact, it is a good time for Nigerians who have abandoned their home project to get into action and take advantage of the turn of event. This can contribute to better living conditions and property values.
Moreover, recall that businesses involved in construction, real estate development, and infrastructure projects are major consumers of cement. Reduced cement prices mean that these businesses can significantly cut their construction costs.
This, in turn, can lead to increased profit margins, more competitive pricing for their projects, and potentially more job opportunities within the construction sector.
Revitalizing Construction Activity
The construction industry plays a crucial role in economic development. It creates jobs, drives demand for various goods and services, and contributes to overall economic growth. It is good that when cement becomes more affordable; it stimulates construction activity.
More construction projects, whether residential, commercial, or infrastructure-related, are likely to commence. This could lead to a surge in construction-related jobs and economic activity.
2. Catalyst for National Progress
In their official press release, BUA Cement articulated that this strategic move was driven by their commitment to fostering growth in the building materials and infrastructure sectors. The company credits its expanded production capacity and dedication to enhancing affordability for Nigerians as key factors enabling this price reduction.
Recall that BUA Cement PLC secured $500 million financing package from the international finance corporation (IFC) and its partner earlier in the year. This finance is said to be utilized in developing two new energy-efficient cement production lines in Sokoto state. Each of these production lines is reported to have the capacity of producing up to three million tonnes of cement annually when completed.
While this project is expected to produce over 10,000 jobs, it is now alleviating one of the major challenges of Nigerians. Afterall, the home is the final dwelling of all, and without cement, the home cannot stand.
BUA Cement acknowledges that affordability is a significant concern for Nigerians when it comes to essential building materials like cement. So, as BUA reduces the price of cement to N3,500, the company is directly addressing this concern. They understand that making cement more affordable to a broader segment of the population can lead to increased construction activity, better housing options, and improved living conditions for Nigerians.
3. A Lifeline for Nigerians Amidst Soaring Inflation
For Nigerians grappling with the twin challenges of skyrocketing inflation and a weakening currency, this price reduction comes as a breath of fresh air. It is such a pity that while the price of a unit of cement would cost around N5,500 – N6,500, the average price of a rented apartment also skyrocketed in many cities in the country.
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This has created a dilemmic situation for many less privileged Nigerians who often find it hard to make a decision between building a home and paying for a befitting rented apartment. Many people have abandoned their home building project due to their inability to finance the required number of cement that will finish the work.
That said, BUA cement reducing prices of cement to N3,500 promises fresh hope for Nigerians just as it’ll reinvigorate the building sector.
4. Fostering Healthy Competition
Additionally, the reduction in cement prices could usher in a new era of competitiveness in Nigeria’s cement industry. While BUA cement has remained the second largest producer of this substance in Nigeria, it has been trailing the largest – Dangote for some time now.
These two production giants would sell a unit of cement around N5,000 to N6,000. So, seeing BUA reduced the price to N3,500 has breathed fresh popularity to the brand, as many Nigerians accept the news with jubilation. While this development is poised to benefit consumers, it’s just a matter of time to see whether Dangote Cement would also slash its price too.
Final Note
BUA Cement’s groundbreaking decision to reduce cement prices from N5,500 to N3,500 per bag is poised to transform Nigeria’s construction landscape, fuel economic growth, and ease the burden of high inflation for its citizens. This bold move could trigger a more competitive cement market while benefiting both consumers and businesses alike.