Abdulsamad Rabiu, the Chairman of BUA Cement Plc, has revealed that cement prices would have dropped to as low as ₦3,500 per bag were it not for the large appetites of profiteering dealers.
He made the revelation at the 8th Annual General Meeting (AGM) of the company on Thursday.
While adding that the devaluation of the Naira in 2023 and the fuel subsidy removal also played roles in making the policy unsustainable, Rabiu posited “So, a lot of the dealers took advantage of that policy. Rather than pass the low prices to the customers, they were selling at even double the price we sold to them.
“Some were selling at N7,000 and 8,000 per bag. They made a lot of money with a very high margin.
“I think we had sold more than a million tons at N3,500 before we realised what the dealers were doing.
“And then, because of the issues that Nigeria faced at the time about devaluation of the Naira last year and the removal of fuel subsidy, we could not continue that policy.
“We wanted that price to stay at that level but dealers refused. So, we were unable to sustain that simply because we would rather not be in a situation where we were subsidising dealers.
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