BUA Cement recently provided an explanation for its inability to fulfill its initial plan of selling cement at a fixed price of N3,500 per 50kg bag nationwide. The company cited market forces as the main hindrance to this plan.
This clarification comes in response to a seven-day ultimatum issued by two civil society groups, who demanded that BUA Cement sell cement at N3,500 per bag or face protests.
According to BUA Cement, it did, in fact, sell cement at the discounted price of N3,500 for a period of three to four months. The company had hoped that other players in the cement industry would follow suit and contribute to making cement more affordable.
However, BUA Cement faced challenges in maintaining the discounted price due to the actions of intermediaries and wholesalers.
These intermediaries and wholesalers prevented the intended recipients, the end-users, from accessing the reduced price of N3,500.
As a result, BUA Cement was unable to sustain the discounted price and had to adjust its pricing accordingly.
The company’s executive director, Mr. Kabir Rabiu, emphasized that BUA Cement had made efforts to make cement affordable for consumers.
However, external factors beyond the company’s control, such as market forces and the actions of intermediaries, had a significant impact on their ability to maintain the fixed price.
Article updated 1 week ago. Content is written and modified by multiple authors.
