BUA Cement Plc has attributed the high cost of cement in Nigeria to rising energy, transportation, and foreign exchange-related expenses, saying the industry continues to face significant production cost pressures despite recent improvements in exchange rate stability.
Speaking at the company’s 10th Annual General Meeting held in Abuja on Thursday, the Chairman of BUA Cement, Abdul Samad Rabiu, said recent economic reforms, particularly in the foreign exchange market, were beginning to improve manufacturers’ planning.
The Chairman of BUA Cement Plc, Abdul Samad Rabiu
The cement industry, he stated, remains heavily dependent on imported spare parts, equipment, and energy-related inputs, making it highly vulnerable to exchange rate fluctuations.
Mr Rabiu noted that although the naira depreciation created serious challenges for manufacturers, recent stability in the foreign exchange market had started easing some pressures, especially in shipping and logistics costs.
“The good news is that things are getting better because of the stability. You see, prices, especially shipping costs, are coming down,” he said.
He added that the reforms, though difficult initially, had created a more transparent market where manufacturers now have better access to foreign exchange.
“Today, whatever rate I get, it’s the same rate anybody gets,” he stated, noting that businesses could now plan several months due to improving exchange rate predictability.
Mr Rabiu said BUA remained focused on reducing operational costs through investments in energy infrastructure, local production, and logistics efficiency.
He highlighted that the company’s long-term strategy remained aligned with Nigeria’s industrialisation drive through expansion, operational efficiency, and increased local production. He also stated that its revenue rose to N1.2 trillion in 2025 from N876.5 billion in 2024, while profit before tax increased to N465.3 billion from N99.6 billion.
Profit after tax also rose significantly to N356 billion from N73.9 billion of the previous year.
The shareholders also approved a final dividend of N10 per ordinary share for the 2025 financial year, bringing the total dividend payout to N338.64 billion.
Input Cost
Speaking further about BUA’s pricing structure during a press conference after the meeting, Yusuf Binji, the Managing Director and Chief Executive Officer, said energy alone accounted for about 60 per cent of cement production costs.
Yusuf Binji, the Managing Director and Chief Executive Officer of BUA Cement PLC
“As you know, the price of cement, rightly or wrongly, is a consequence of input costs,” he said, and added that natural gas costs at one of the company’s plants in Edo State rose sharply following the naira devaluation.
“We were paying close to N4 billion for natural gas every month. At one point, it reached N16 billion a month. It became very difficult to absorb all these costs,” he said.
Mr Binji also linked rising diesel prices to recent tensions in the Middle East, and said the increase significantly affected transportation and distribution costs.
He further said diesel supplied to the company’s factories rose from about N930 per litre in March to nearly N1,850 per litre within two months.
“If you consider that we have to deliver cement to our customers using our own trucks that use diesel, even the price we are talking about, half of that price of a bag of cement is actually because of transportation.”
He also dismissed claims that cement was selling for between N13,000 and N15,000 per bag nationwide, insisting that prices in several regions remained lower.
“I have the prices from the northern region, and yesterday it was N11,100 a bag. So it is nowhere near the N13,000 or N15,000 a bag that was quoted,” he said.
Mr Binji, however, assured consumers that the company would continue reviewing prices in line with prevailing economic realities and changes in input costs.
“As we have favourable economic conditions in Nigeria, especially costs that are related to our input costs, we will adjust accordingly. Whichever way it swings, we will try to make sure that we give prices that are fair and decent to Nigerians.”
Despite current economic challenges, the company, he said, was continuing expansion projects to increase production capacity.
Mr Binji disclosed that BUA Cement’s new production line in Ososo, Edo State, was nearing completion, while another production line had been planned for Sokoto State.
He said the projects were expected to add about six million tonnes to the company’s annual production capacity, increasing total installed capacity to about 23 million tonnes per annum by 2027.
He noted that the company had invested heavily in bulk cement distribution by acquiring 500 specialised trucks to support major infrastructure projects across Nigeria.
“We are even thinking of buying another 500 more,” he said, citing rising demand linked to ongoing highway and infrastructure projects, such as the Lagos-Calabar Coastal Highway.
The company added that it had temporarily reduced exports to prioritise local supply amid growing domestic demand.
Despite insecurity and broader economic pressures, Mr Binji said the company would continue expanding its operations nationwide.
“Our major aim is to be able to deliver cement everywhere in Nigeria at affordable prices, and that is what we will continue to do,” he said.
Leadway Assurance Limited has launch Insurance Sector Strengthening Programme (ISSP), a five-year initiative.
The programme, held in Abuja, was designed to address key challenges limiting insurance growth in Nigeria, including low public awareness, weak consumer confidence, inadequate distribution, capacity constraints, and limited insurance adoption among women, young people, and Micro, Small and Medium Enterprises (MSMEs).
Speaking at the launch in Abuja, the Commissioner for Insurance and Chief Executive of NAICOM, Mr Olusegun Ayo Omosehin, said the programme would provide a coordinated framework to translate industry reforms into measurable improvements in insurance coverage and consumer confidence.
“The ISSP initiative will focus on six key areas: advocacy and policy, awareness and education, capacity building, gender inclusion, youth engagement, and MSME and value-chain development. Efforts to expand insurance coverage must be supported by strong underwriting standards, good corporate governance, effective claims administration, transparency and adequate policyholder protection. Regulation must serve as both a shield for policyholders and a compass for responsible market development.”
Also, the Head, Commercial Division, Leadway Assurance, Mr. Olawale Alao, described the ISSP as a timely intervention capable of tackling both the structural and perception-related challenges confronting the industry.
Alao said the programme offered stakeholders a structured platform to identify market gaps and develop practical solutions to improve public understanding and participation.
He said its success would largely depend on changing the perception of insurance from an optional financial product to an essential part of everyday life and financial planning.’
“Over the next five years, we believe this initiative can deepen awareness, particularly among young Nigerians, build stronger trust in the sector and encourage more people to see insurance as an essential tool for protection and financial resilience,” he said.
”Increasing the number of policyholders alone would not be sufficient, stressing that Nigerians must also understand the value of insurance and be able to incorporate it into their everyday financial decisions. He added that stronger awareness and confidence in insurance would be particularly important among younger Nigerians, who represent a major part of the country’s future consumer and investment base.Also speaking on this initiative, Team Lead of the ISSP Design Team and Managing Director of EMDI Capacity Development Ltd., Bukola Ifemade, called for urgent and coordinated action to unlock the trillion-naira potential of Nigeria’s insurance sector.
“This flag-off marks the beginning of this mobilisation. Success will require strong partnerships and a sustained commitment to innovation and inclusion,” he said.
The ISSP executive summary estimates that only about five per cent of Nigeria’s population currently has insurance coverage, while 78 per cent lack basic insurance knowledge. Women account for 32 per cent of policyholders, people aged 18 to 35 make up less than 20 per cent of the industry’s customer base, and insurance penetration among MSMEs is estimated at eight per cent. To address these gaps, the programme will target five million members of the general population, two million women entrepreneurs and decision-makers, 1.5 million young Nigerians and 250,000 MSMEs across Nigeria.
For Leadway, supporting the ISSP aligns with its commitment to building a formidable insurance industry by enhancing awareness, building consumer confidence, and making financial protection more accessible to individuals, families, and businesses.
About Leadway Assurance
Leadway Assurance is one of Nigeria’s foremost non-banking financial services groups, offering diversified solutions across insurance, pensions, health, and asset management. Founded in 1970, the company has built a legacy of trust and innovation, serving millions of individuals and businesses across Nigeria and West Africa.
The Central Bank of Nigeria(CBN) has disowned a purported document claiming that Governor Yemi Cardoso approved a $46 billion developmental grant to an organisation.
CBN, in a post on its official X account on Thursday, described the document as “fake” and urged members of the public to disregard it.
The purported letter, dated 13 August 2026, was addressed to the “Atufeg Empowerment and Development Centre” and claimed to be an official endorsement and authorisation for the release of a developmental grant.
It purportedly bore Mr Cardoso’s signature and stated that CBN had authorised the immediate transfer of $46 billion to the beneficiary’s designated account for the execution of “approved national empowerment and developmental projects.”
“The CBN confirms full endorsement and authorises the immediate transfer of these funds to the beneficiary’s designated account,” the purported letter stated.
It further claimed that the authorisation was “final and binding.”
Disclaimer
However, the apex bank, while sharing an image of the document on X, said: “This content is FAKE. Let the public be guided.”
CBN’s disclaimer comes amid the recurring circulation of purported government and financial institution documents on social media, underscoring the importance of verifying such claims through official channels before acting on them.
In recent months, OPay Digital Services Limited, May & Baker, MTN, Wema Bank and other corporate organisations have dissociated themselves from social media posts published by unauthorised entities impersonating their brands and issuing purported corporate messages.
On Thursday, the Nigeria Police Force National Cybercrime Centre (NPF-NCCC) announced that it had arrested Hafsat Abubakar for circulating false rumours about the OPay shutdown.
Similarly, in July, PREMIUM TIMES uncovered how unauthorised video advertisements on TikTok, offering financial assistance such as grants, loans, giveaways, and investment opportunities, were used to scam Nigerians.
The investigation found that the fraudulent ads, some of which were AI-generated, were designed to target and lure unsuspecting Nigerian users into scams.
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