Cement Price To Crash Soon As Cost Of Materials Fall

[caption id="attachment_21895" align="alignnone" width="700"]FILE PHOTO[/caption]

Alhaji Abdulsamad Isyaku Rabiu, Chairman of BUA Cement, has predicted a fall in the price of cement following a drastic fall in the cost of building materials.

Rabiu made the prediction on Thursday after meeting with Acting President Yemi Osinbajo at the State House in Abuja.

He attributed the expected fall in the cost of cement price to the fall in high cost of low pour fuel oil (LPFO) used to run cement plants. 

Advertisement

Rabiu further said due to a noticeable improvement in foreign exchange rate, cement producers have resorted to bring down the cost of the product.

“Cement production requires quite a lot of energy; that is quite a significant part of the cost element of cement production. That has been addressed since the price of LPFO that we use has come down. I’m talking about Sokoto Cement Company now. 

“Of course, the other cement plants scattered all over the country like may be in the southern part of the country are using gas which is actually much cheaper. But for Sokoto, for example, we use LPFO and LPFO is quite expensive.

“We have to transport it either from Lagos or from the Kaduna refinery if there is availability. That you know from time to time impacts on the cost. But I can assure you that the three major companies producing cement in Nigeria are working very hard to see that the price of cement comes down in the very near future.

Advertisement

 “We are trying very hard to make sure the price comes down. Of course, the foreign exchange aspect has improved dramatically. That, as we all know, was a big issue. Now, that has improved considerably. So, I think we will see quite a reduction in the very near future,” he said.

Leave a comment

Advertisement