Business
BUA blames energy and transport costs for high cement prices
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 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.
“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.
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“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.
The United States Mission in Nigeria has reaffirmed its commitment to deepening trade, investment, security, and cultural relations with Nigeria as it marked the 250th anniversary of American Independence and Freedom in Lagos.
Speaking at the celebration, the Chargé d’Affaires at the U.S. Mission to Nigeria, Keith Heffern, said the anniversary celebrates 250 years of American history while looking ahead to the country’s future leadership in innovation and global engagement.
Mr Heffern described Nigeria as one of the United States’ most important partners in Africa, noting that economic relations between both countries have continued to expand.
“Nigeria is now the United States’ second-largest trading partner in Sub-Saharan Africa. In 2025, two-way trade between our countries reached nearly $15 billion, representing a 14 per cent increase over 2024,” he said.
He added that more than 100 US companies currently operate in Nigeria, saying the investments support jobs, economic opportunities, and growth in both countries.
According to him, one of the mission’s priorities is helping American companies succeed in Nigeria through the US-Nigeria Commercial and Investment Partnership, a five-year Memorandum of Understanding signed with Nigeria’s Ministry of Industry, Trade and Investment.
Now in its second year, Mr Heffern said the initiative has brought together nearly 50 American and Nigerian companies to remove barriers to trade and investment.
He noted that Lagos hosted the first ministerial-level meeting under the partnership in January and said cooperation is focused on the digital economy, agriculture, and infrastructure to promote long-term economic growth.
Security, Cultural Collaboration
Beyond commerce, Mr Heffern highlighted the growing security collaboration between the two countries. He noted that the National Drug Law Enforcement Agency (NDLEA), working with the US Drug Enforcement Administration (DEA), recently dismantled a major transnational criminal organisation involved in drug trafficking and money laundering.
“Efforts like this disrupt the illicit networks that undermine security, finance criminal activity, and threaten the safety and prosperity of our two nations,” the diplomat said.
Mr Heffern said cultural exchanges remain a strong pillar of the bilateral relationship, with this year’s event themed ‘Motown’ to celebrate the global influence of American music and its connection to Nigeria’s creative industry.
He said Nigerian Afrobeats stars continue to enjoy global recognition, citing Rema and Burna Boy as examples of artists who have achieved international success.
Looking ahead, he said the United States hopes to strengthen cultural and commercial cooperation through sports as it prepares to host the 2026 FIFA World Cup and the 2028 Summer Olympics.
Mr Heffern also highlighted the impact of US exchange programmes, stating that more than 14,000 Nigerians have participated in U.S. government-sponsored exchanges and now form a network of leaders contributing to stronger bilateral relations.
He further announced that construction is underway on the new US Consulate General complex in Eko Atlantic, describing it as one of America’s most significant investments worldwide and “a lasting symbol” of the U.S. commitment to Nigeria.
Earlier at the event, the US Consul General in Lagos, Rick Swart, reflected on his diplomatic career as he prepares to retire from the US Department of State at the end of July.
Mr Swart said the celebration was particularly meaningful given his experience in Lagos after serving in Mali and several other West African countries over the previous 35 years.
He acknowledged Lagos’ diversity, noting its creativity, resilience, innovation, and hospitality towards all its inhabitants.
“Of all the places Bonnie and I could have concluded our diplomatic journey, I cannot imagine a better place than Lagos, Nigeria.
“It has been the honour of my career to serve here in Lagos. The memories and friendships we have made here will stay with us long after we depart,” he said.
Partnership expansion
Also speaking, Lagos State Governor Babajide Sanwo-Olu hailed the American government, describing the United States as a country whose history has shaped global conversations for 250 years.
He said Lagos and the United States have maintained a productive relationship spanning more than six decades through partnerships in finance, technology, healthcare, education, and skills development.
He also said thousands of Nigerians have benefited from exchange programmes and innovations from the United States, expressing confidence that the partnership would create new opportunities for both countries in the years ahead.
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“That singular occasion, idea, and symbol was an act of modern history. There is no part of the world that has not heard of the United States of America. And it continues to shape the global conversation.
“And we’re indeed happy that, for us in Lagos, we have created that relationship for over six decades. We see the United States and Lagos as friends, not new friends, because Nigeria takes a bigger part in that friendship.
“And so one can’t help but feel lucky among the various recipients or beneficiaries of the exchange programmes that we’ve had over this long relationship. We’ve seen relationships in finance, technology, and health. We’ve seen skills being transferred,” Mr Sanwo-Olu said.
The governor noted that Nigeria remains one of America’s largest trading partners in Sub-Saharan Africa and expressed optimism that bilateral businesses and investment would continue to expand.
BY NKECHI NAECHE-ESEZOBOR—The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks with effect from July 1, 2026, as part of efforts to strengthen the stability of the country’s financial system and enforce regulatory compliance.
The apex bank said the action was taken in accordance with its powers under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
According to the CBN, the revocation was approved by its Governor, Mr. Olayemi Cardoso, following the affected banks’ failure to meet the regulatory requirements necessary for continued operation as licensed financial institutions.
The Bank explained that the decision was necessitated by one or more regulatory infractions, including insufficient assets to meet liabilities, closure of operations without prior approval from the CBN, prolonged inactivity and cessation of financial intermediation, failure to commence operations within 12 months of receiving a licence, and failure to maintain the minimum capital requirement unimpaired by losses.
The CBN stated that the revocation forms part of its ongoing supervisory and regulatory measures aimed at safeguarding the stability of the financial sector, protecting depositors, and ensuring that all licensed financial institutions operate in compliance with existing laws and regulatory standards.
The apex bank reaffirmed its commitment to promoting a safe, sound, and resilient financial system, adding that it will continue to take appropriate regulatory and supervisory actions whenever necessary to maintain public confidence in Nigeria’s financial system.
The post CBN Revokes Licences of 46 Microfinance Banks appeared first on Business Today NG.
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