BUA Chairman: Cement at ₦9,000 not expensive because it’s cost about $110 and $120 per ton

…says food prices dropping due to policy, intervention

By Kunle Sanni

Chairman of BUA Group, Samad Rabiu, has defended the current market price of cement in Nigeria, arguing that at ₦9,000 per bag, the commodity is still competitively priced when converted to international market rates.

Speaking during a briefing at the State House after a meeting with President Bola Tinubu on Thursday, Rabiu said that although some Nigerians perceive the current cost of cement as high, the actual per-ton rate of about ₦180,000 translates to roughly $110 to $120 — a standard price globally when the naira’s current exchange rate of ₦1,600 to the dollar is factored in.

“Cement at ₦9,000 per bag is not high. Twenty bags make a ton, and that’s ₦180,000 or about $110 to $120 per ton — which is in line with global averages,” Rabiu stated. “Even if the retail price is ₦10,000, that’s ₦200,000 per ton, still around $120. The real issue is currency devaluation and the cost of inputs, most of which are dollar-denominated.”

He highlighted that one of BUA’s cement plants, the Obu Plant, currently pays ₦15 billion monthly for gas — up from ₦5 billion a few years ago — showing the pressure that rising energy and import costs have placed on cement manufacturers.

Despite these pressures, Rabiu announced a major concession aimed at supporting President Bola Tinubu’s Renewed Hope infrastructure agenda. He revealed that BUA and Dangote Cement have jointly agreed to freeze cement prices for all government contractors involved in Renewed Hope projects.

“We’ve decided that for any contractor working on Renewed Hope projects, cement prices will be frozen. There will be no increase for the foreseeable future,” he said, adding that this decision came after discussions with Alhaji Aliko Dangote, whom he credited for originating the initiative.

In addition, Rabiu announced the appointment of BUA Cement MD, Engineer Yusuf Binji, as the new Chairman of the Cement Manufacturers Association of Nigeria (CEMAN). This move, he explained, is intended to support the implementation of the cement price freeze and broader collaboration on infrastructure development.

Also speaking on food prices, the BUA Chairman praised President Tinubu for approving tariff waivers last year on key food imports like rice, wheat, maize, and sorghum, which enabled companies like BUA Foods to import large quantities and stabilize the market.

“At the peak of the food crisis last year, rice was over ₦100,000 per 50kg bag, flour was ₦80,000, and maize hit ₦60,000. Today, rice is ₦60,000, flour is ₦55,000, and maize is down to ₦30,000. That is a huge relief for Nigerians,” Rabiu said.

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