BUA Cement Plc has said cement prices will decline when production and logistics costs ease, arguing that the rise in prices has been driven largely by foreign exchange depreciation, surging energy costs and higher transportation expenses rather than excessive profit-taking.
Speaking at the company’s 10th Annual General Meeting in Abuja on Thursday, Chairman of BUA Cement, Abdul Samad Rabiu, said recent economic reforms, particularly the stabilisation of the foreign exchange market, were beginning to improve planning and reduce cost pressures for manufacturers.
Rabiu explained that the cement industry remained highly exposed to exchange rate movements because of its dependence on imported spare parts, energy inputs and other production requirements.
He noted that while the naira devaluation created significant challenges for manufacturers, recent exchange rate stability had improved business planning and was already contributing to lower prices for some commodities.
“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 said.
