The hike in the cost of building materials has taken a depressing shift in Nigeria, as many complained bitterly about the unbearable increase in building materials, which has affected the delivery and development of the housing sector in Nigeria.
However, in contrast to the popular belief about the high cost of building materials, there seems to be an exception to this uproar: THE BUA CEMENT.
Recently, the price of a popular cement brand in Nigeria, BUA cement, announced a cut of 30% (which loosely means a reduction to #3500). While there seem to be some speculations about the authenticity of this new announcement, retailers are yet to sell the BUA cement for the proposed amount, as they disagreed on the amount vehemently, stating the price is yet to change from the company.
For this reason, BUA cement has been scarce in the local market, even as retailers maintain old prices.
Speaking with major cement dealers here in Abuja who expressed their concern about the new announcement and how it has yet to reflect on their businesses, as they still buy the cement at the old price.
In his statement, he says,
“I don’t think the BUA cement is ready to handle the pressure about their new price crash; in fact, I don’t think there is enough estimation and analysis done by the management before concluding on that price.”
Also in the same vein, another major cement dealer in Abuja has made an unsatisfactory comment about the new crash price of BUA cement, saying the company has yet to confirm and make an official statement about the new price, saying the price flying all over is from social media and not from the BUA company itself.
In his statement, he says
“The Bua company is yet to make any official announcement about the new price, because if they do, it will definitely reflect, but it has not, because we still buy it at the old price and when we calculate that with the transport fare and everything, you will realize there is little or no profit left for us as the retailer”
Over the years, cement purchases have played a huge role in the building of construction and general housing development, and for this reason, influenced the overall decisions and status quo of many building contractors and real estate developers.
With the proposed reduction in BUA cement, there will definitely be a paradigm shift in the growth of housing development, but what looks impressive seems to be uncertain as consumers are yet to get the price of the cement at the desired rate.