Energy, Transport Costs Driving Cement Price Surge — BUA Chairman
Abdul Samad Rabiu says rising fuel costs, energy expenses and naira devaluation continue to increase cement production and distribution costs across Nigeria.
BUA Cement Chairman Abdul Samad Rabiu says rising energy and transportation costs, alongside exchange rate pressures, are the major factors behind the sharp increase in cement prices across Nigeria.
Chairman of BUA Cement Plc, Abdul Samad Rabiu, has attributed the rising cost of cement in Nigeria to increasing energy and transportation expenses.
Rabiu made the remarks during the company’s 10th Annual General Meeting held in Abuja.
According to market observations referenced at the meeting, the price of a 50kg bag of cement, which sold between ₦4,700 and ₦5,200 in April 2023 depending on location and brand, now ranges from about ₦11,600 to ₦12,500 across different parts of the country.
Rabiu explained that cement manufacturers continue to face rising operational costs, particularly in generating electricity independently and transporting products from factories to markets.
He stated that fuel price increases, especially diesel, have significantly affected production and distribution costs.
“We do everything to make cement affordable to the public but some factors are beyond our control. We spend a lot of money to generate our own electricity. The price of diesel has gone up very much.”
He added that global energy pressures and exchange rate changes have also contributed to increased costs of imported inputs used in cement production.
Rabiu noted that while exchange rate reforms created short-term pressure, they also improved access to foreign exchange and planning for businesses.
Also speaking after the AGM, Managing Director of BUA Cement, Yusuf Binji, said cement pricing reflects the reality of production input costs, particularly energy and transportation.
Binji explained that energy-related expenses account for a significant portion of manufacturing costs and pointed to exchange rate fluctuations and rising fuel prices as major factors affecting operations.
He revealed that costs associated with natural gas supply and diesel procurement had increased sharply within recent years, placing additional pressure on manufacturers.
Despite the economic challenges, Binji said the company remains optimistic about expanding operations through innovation and sustainable business practices.
At the meeting, the company also announced a dividend payout of ₦10 per ordinary share of 50 kobo, amounting to ₦338.643 billion from its 2025 profit after tax of ₦356 billion.
