Cement prices will fall when input costs ease – BUA

BUA Cement Plc has clarified the factors influencing cement prices in Nigeria, asserting that a reduction in costs will directly lead to lower prices for consumers. The company's Chairman, Abdul Samad Rabiu, explained at the 10th Annual General Meeting that the current price increases are primarily driven by external economic pressures such as foreign exchange depreciation, escalating energy costs, and higher transportation expenses, rather than excessive profit-taking by the company.

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The good news is that things are getting better because of the stability. You see, the price of certain commodities is coming down, especially shipping prices.

Rabiu highlighted that recent economic reforms, particularly the stabilization of the foreign exchange market, are beginning to positively impact manufacturers by improving planning capabilities and alleviating cost pressures. He emphasized the cement industry's vulnerability to exchange rate fluctuations due to its reliance on imported spare parts and energy. However, the recent stability in the naira has created a more transparent market, making it easier for businesses to access foreign currency and plan their operations more effectively.

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Today, whatever rate I get, it’s the same rate anybody gets.

Despite the challenging economic climate, BUA Cement showcased strong financial performance, generating N1.2tn in revenue in 2025, a substantial increase from the previous year. Profit before tax saw a remarkable surge of 367 percent, reaching N465.3bn. The company remains committed to its growth strategy, focusing on operational efficiency, investments in energy infrastructure, and local production initiatives, aligning with Nigeria's industrial development agenda and aiming to deliver long-term value to shareholders.

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As you know, the price of cement, rightly or wron