Cement marketers in the South-western region have refused to adhere to the recent price reduction of the product announced by the management of BUA Cement company.
Recall that the cement manufacturer had, in an issued statement last week, announced that from Tuesday, October 2, 2023, it will slashed the ex-factory price of the commodity by 30 percent, with a bag selling for N3,500 per bag.
However, findings have revealed that the price of BUA branded cement had largely remained the same in the South-West, especially in Abeokuta, Osogbo, Ibadan and other States’ capital.
For instance, while cement traders in Lagos have continued to sell the BUA brand for between N5,100 and N5,400, the brand goes for an average of N5,400 in Ibadan, the Oyo State capital.
In the same vein, the BUA cement brand sells for N5,450 in Osogbo, N5,500 in Akure and N5,500 in Ado-Ekiti on the average, contrary to the expectations of many buyers that they will get the product a the reduced rate recently announced by the BUA management.
Reacting to the development, some cement traders who agreed to speak on the matter described the announcement of price reduction by BUA as a mere media propaganda.
According to the traders, the announcement has failed to to have direct effect on the price of the product, maintaining that it will take more than words of mouth to effect a noticeable price crash.
A major cement distributor in Agege, Lagos, Alhaja Shakira Folarin, said the cement manufacturer (BUA) only played to the gallery when it announced the price slash.
According to Folarin, there is a wide gulf between the ex-depot price of cement and the actual market price.
For Nigerians to see a remarkable crash in the price of cement, manufacturers must further bring down the ex-factory price of the product, or there is a major crash in transportation cost, he explained.
Also speaking on why cement price is still high in the city, a cement seller in Apata, Ibadan, Toyin Abodunrin, explained that contrary to the announcement by BUA, sellers dont get the product from distributors at the rate of N3,500.
The distributors sell to us at N5,000 or N5,100. So, as retailers, can we sell at the rate of N3,500. The price now is N5,300. It is even more expensive than other brands because it is scarce. That is why we want the media to help us tell Nigerians that we cannot sell at N3,500, Abodunrin pleaded.
