By Charles Okonji
‘BUA wants to attract the attention of the federal government knowing that road construction contract would soon commence’
BUA Group appears not have impressed many Nigerians with its slashing of the price of 50kg cement from N5,000 to N3,500.
The company on Sunday October 1, 2023 announced the reduction to coincide with Nigeria’s 63rd Independence anniversary.
But many Nigerians were not excited about the price slash announcement until it is implemented.
At Canal View Estate in Isolo Lagos, a cement dealer, Alhaji Abiodun Haruna, said that he was not aware of the new price regime.
He said that though he was still selling old stock, the possibility of downward price review was not possible.
He asked: “Has the cost of production reduced? Has public energy source (PHCN) improved? Has the cost of fuel come down?
“What of the cost of transportation? It will be impossible for the price to just come down like that.”
Haruna further disclosed that they (dealers) were witnessing low patronage because of harsh economy.
Haruna was corroborated by another dealer, Mr. Michael Alabi.
Alabi, who does his business in Olodi Apapa Lagos, said that BUA’s new product price was not possible.
Alabi, who has been in the cement business for 20 years, said that BUA was not serious; but political.
According to him, “BUA wants to attract the attention of the federal government knowing that road construction contract would soon commence.”
Alabi further disclosed that his wife, who deals in food stuffs, makes more sells now than before, stressing, “Nigerians spend their money now on food and are not interested in erecting houses.’’
At the Nigerian Stock Exchange, a broker, Johnbull Macauley, said that the slash in price was appreciated, yet it was not the priority of a common Nigerian struggling to eat a plate of food per day.
His words: “BUA only reduced price by N500 but Nigerians are hungry. They are looking for a reduction in the prices of Flour and Spaghetti that have gone out of reach.
“Remember that BUA made N100 billion in six months with only N10 billion tax that came out of his Sugar refinery in Lagos.
“The rest are not taxable because they are in a free trade zone called Bundu Free Trade Zone.’’
