BUA Cement Distributors In Edo, Sokoto Start Buying Supplies at 3,500, rattles Dangote and Lafarge

The cement industry in Nigeria has been shaken by a recent move by BUA Group to reduce the price of its cement products. The announcement by BUA Group Chairman, Abdul Samad Rabiu, that his cement would be sold at 3,500 Naira per bag has caused panic among the other major players in the industry.

The media has been flooded with reactions and speculations over the feasibility and sustainability of BUA’s price cut. Some of these have been traced to sources within the industry who feel threatened by BUA’s growing market share and customer loyalty. They have also been spreading rumours that BUA Cement is scarce and unavailable in some parts of the country.

However, investigations have revealed that these claims are false and that BUA Distributors in Edo, Sokoto and other states have been getting their supplies at 3,500 Naira per bag. One of them, Mike Igwe, a distributor based in Benin, confirmed this to us and said that he has been buying at that price since the announcement was made. He also said that many buyers are switching to BUA Cement because of the huge price difference with other brands.

He said, “The other manufacturers have reasons to be afraid. They are definitely going to lose out in the market. Who will abandon where he’s buying for 3,500 Naira per bag and go to Dangote where he will pay over 5,500 Naira? He also attributed the delay in reaching some parts of the country to road transportation challenges caused by the rainy season. He expressed optimism that with the dry season approaching, BUA Cement would be more accessible and available across the country. He also commended BUA for increasing its production capacity to meet the rising demand.

Other distributors we spoke with also disclosed that Dangote and Lafarge have been under pressure since BUA’s price reduction and have been trying to retain their customers by offering incentives and discounts. They said that Dangote has been giving out one free truck for every seven trucks bought by distributors, while Lafarge has been offering credit facilities and flexible payment terms. However, they said that these measures are not enough to compete with BUA’s low price and high quality.

They also pointed out some of the unfair practices by Dangote and Lafarge that have made them lose trust and confidence in them. They said that Dangote only accepts cash payments from distributors and does not refund them when there is a price change. They said that Dangote would rather ask them to pay the extra amount or forfeit their money. They contrasted this with BUA’s policy of honouring old prices for existing orders even when there is a price increase.

They also said that Lafarge has been inconsistent and unreliable in its supply and delivery of cement. They said that Lafarge often fails to meet its delivery deadlines and sometimes delivers substandard or expired products. They said that this has affected their reputation and credibility with their customers.

They praised BUA for being customer-friendly and responsive to their needs. They said that BUA has been providing them with quality products, timely delivery, good customer service and after-sales support. They also applauded BUA for reducing the price of cement at a time when Nigerians are facing economic hardship and need relief from all sectors.

Some analysts have also weighed in on the issue and have dismissed the claims by some sponsored commentators that BUA’s price cut is impracticable or unsustainable. They said that BUA has shown that it is possible to produce quality cement at a lower cost and still make profit. They said that BUA has invested heavily in modern technology, efficient processes, alternative energy sources and local raw materials that have reduced its production cost and enhanced its productivity.

They also said that BUA has demonstrated social responsibility and patriotism by putting the interest of Nigerians above its own profit motive. They said that BUA has contributed to the development of the country by creating jobs, empowering local communities, supporting infrastructure projects and paying taxes. They urged other manufacturers to emulate BUA’s example and reduce their prices as well.

They also advised Nigerians to patronize BUA Cement as a way of rewarding its good gesture and encouraging more competition in the industry. They said that this would lead to more affordability, availability and accessibility of cement in the country.

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