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BUA blames energy and transport costs for high cement prices

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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 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.

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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
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.

READ ALSO: How I was denied entry into South Africa – BUA Chair

“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.


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COP31: What Nigeria, other African countries will push for at UN climate summit

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As world leaders prepare to convene in Antalya, Türkiye, for the 31st session of the Conference of the Parties (COP31) to the United Nations Framework Convention on Climate Change (UNFCCC), the African Group of Negotiators (AGN) says it will push for increased climate finance, including an ambitious replenishment of the Green Climate Fund (GCF), among other priorities.

The group said securing adequate and predictable climate finance, particularly grant-based and concessional funding, would be central to Africa’s negotiating priorities at the conference.

This was disclosed by the AGN Chair, Nana Antwi-Boasiako, on the sidelines of the pre-COP31 meetings on Friday.

The AGN is a coalition of climate change negotiators representing all 54 African countries at the UNFCCC and other international environmental negotiations. Nigeria is a member of the group and will negotiate under its umbrella at COP31.

Nigeria’s delegation and technical support is expected to be led by the Nigeria Council on Climate Change Director General, Omotenioye Majekodunmi.

In a speech recorded and published on the AGN’s social media platforms ahead of the formal commencement of COP31, scheduled to hold from 9 to 20 November, Mr Antwi-Boasiako said African countries would seek stronger financial commitments to support the implementation of their climate targets and adaptation plans.

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According to him, the continent has made considerable progress in establishing the structures needed to implement the Paris Agreement, but inadequate financing remains a major obstacle.

He cited progress in developing Nationally Determined Contributions (NDCs), carbon market mechanisms under Article 6 of the Paris Agreement, National Adaptation Plans and the Enhanced Transparency Framework.

However, he said many developing countries were struggling to implement their climate commitments because of financial constraints.

“All these issues are structures that are going to support implementation. The key question now is: Where is the money? Where is the financial ambition to help us implement those commitments that we are making as developing countries?” the AGN chair said.

He noted that the group had submitted proposals for agenda items on tripling adaptation finance and replenishing the Green Climate Fund, describing both as critical to advancing climate action across African countries.

He explained that the proposed agenda item on adaptation finance was intended to provide an opportunity to clarify and establish operational arrangements for implementing the decision reached at COP30 in Belém, Brazil, to triple adaptation finance.

The group also wants COP31 to support an ambitious replenishment of the Green Climate Fund next year, describing the facility as particularly important for financing climate action in African countries.

COP31: From consensus to action

COP31 is expected to focus on translating climate commitments into concrete action, with an emphasis on implementation.

The summit will operate under an unusual shared leadership arrangement, with Türkiye hosting the conference while Australia leads the negotiations. Its overarching slogan, “Where Dialogue Becomes Global Action”, reflects the ambition to move beyond climate pledges towards practical implementation.

Beyond the proposed agenda items, the African negotiating bloc is seeking to defend the existing financial obligations of developed countries under the Paris Agreement.

Mr Antwi-Boasiako said Africa was not opposed to expanding the contributor base for climate finance but insisted that such an arrangement must not be used to weaken the obligations of developed countries.

Citing Article 9 of the Paris Agreement, he explained that Article 9.1 establishes the obligation of developed-country parties to provide financial resources to support developing countries, while Article 9.2 provides for contributions from other countries that are in a position to do so.

He argued that developed countries must demonstrate leadership by fulfilling their existing commitments before seeking additional contributions from other countries.

“You cannot abandon your obligations and use something that is not an obligation to replace your obligation,” he said.

The AGN chair disclosed that two policies had recently been adopted at a Green Climate Fund Board meeting ahead of the fund’s next replenishment. One concerns grant-based contributions, while the other addresses the expansion of the contributor base.

The group hopes the replenishment process will demonstrate leadership from developed countries before other countries are encouraged to contribute.

He also identified disagreements between developed and developing countries over climate finance as a major political divide in the negotiations.

While developing countries are demanding credible, predictable and scaled-up grant-based financing, developed countries have cited geopolitical tensions and domestic economic difficulties as constraints on their ability to increase financial contributions.

Mr Antwi-Boasiako, however, questioned the justification for these funding constraints, arguing that developed countries had demonstrated their ability to mobilise substantial resources when other priorities, including energy security, were at stake.

Africa seeks equitable energy transition

The African Group is also seeking progress on the Just Transition Mechanism, insisting that its implementation must reflect the continent’s development realities.

Mr Antwi-Boasiako said the mechanism should go beyond an energy-focused approach to address workers’ welfare, natural resource management, energy poverty and the broader economic implications of the transition.

He warned against an approach that could leave African economies worse off by forcing them to abandon resources they still need for development.

“For the African continent, we think that the transition away from fossil fuels must happen in a more equitable manner. We have a continent that has other challenges. And so we cannot allow our natural resources to be stranded when we need those resources to develop,” he said.

He acknowledged that discussions on the transition away from fossil fuels were continuing but noted that there was no formal negotiated agenda item specifically addressing the issue.

Rather, the discussions were being pursued through a roadmap developed by the COP Presidency outside the formal negotiation process.

The AGN’s position, however, is that countries with higher emissions and greater levels of pollution should lead the transition before other countries follow.

Mr Antwi-Boasiako stressed that the process must be designed to prevent economic hardship in developing countries.

“It is not just energy transition, but transitioning where we are able to make sure that our economies don’t suffer within the transition,” he said.

Climate and trade, other priorities

The African negotiating bloc is also seeking discussions on climate and trade, particularly the implications of unilateral trade measures that could undermine the progress of developing countries.

Mr Antwi-Boasiako said the group was working to secure the adoption of its proposed agenda item to create room for negotiations on the relationship between climate policies and international trade.

He also expressed concern about initiatives introduced under the COP Presidency’s action agenda without adequate consultation with parties.

While the AGN does not oppose initiatives led by the presidency, he said such programmes should not be introduced into formal negotiation texts without proper consultation and party-driven processes.

The group also wants to strengthen the participation of young Africans in climate negotiations through capacity-building programmes that would prepare a new generation of negotiators.

READ ALSO: CBD COP17: Why African countries struggle to mobilise biodiversity funding – AfDB official

COP31 as foundation for COP32

The AGN described COP31 as an important opportunity to strengthen Africa’s negotiating position ahead of COP32, which will be hosted by Ethiopia next year.

Mr Antwi-Boasiako said the group had commenced pre-sessional coordination meetings in Antalya on 1 November, followed by engagements with national focal points and other African delegates.

The group is also engaging other negotiating blocs within the Group of 77 and China to secure broader support for its proposed agenda items ahead of the formal adoption of the COP31 agenda, scheduled for 9 November.

He said Africa’s negotiating strength depended not only on internal coordination but also on building consensus with other developing countries.

The AGN chair cited the continent’s contributions to the establishment of the Green Climate Fund, the Loss and Damage Fund, and the inclusion of adaptation provisions in the Paris Agreement as examples of the group’s influence in international climate negotiations.

The group also called on civil society organisations and the media to help amplify Africa’s priorities throughout the conference.

Mr Antwi-Boasiako said the outcome of COP31 should provide a strong foundation for the continent as it prepares to host the next climate conference.


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NCC Reveals 7,000 Network Interventions as Compensation Reaches 75m Subscribers

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The Nigerian Communications Commission (NCC) says it has carried out about 7,000 targeted interventions across the country to fix service disruptions and strengthen telecom infrastructure, while over 75 million subscribers have received airtime and service compensation in 2026 for poor network quality.

NCC’s Executive Vice Chairman and CEO, Dr Aminu Maida, made the disclosure at the 95th Telecom Consumers’ Parliament in Lagos. He acknowledged that compensation offers only partial relief and cannot make up for the inconvenience and financial losses subscribers suffer when services fail.

Maida said the commission’s real aim is to end recurring infrastructure faults so that Nigerians enjoy dependable connectivity. He noted that compensation cannot bring back business opportunities lost to outages, or the important calls and communications that never went through.

He also announced that public coverage maps, built from crowdsourced performance data, are now live on the NCC portal. The maps are meant to help consumers compare the reliability of operators in their own locations.

Civil society groups at the forum, however, urged more openness in how performance statistics are reported. They warned that official coverage figures may not reflect the real experiences of subscribers, especially those in rural areas and on older network technologies.

In her keynote on consumer rights, Professor Chiso Ndukwu-Okafor, Executive Director of the Consumer Advocacy and Empowerment Foundation (CADEF), cautioned against reading coverage numbers in isolation. She pointed out that many subscriptions still run on 2G and that several rural communities remain in network blackspots.

She also raised concern that some consumers are shut out of app-based complaint channels, and called for better complaint management and accountability. In her view, consumer trust should be treated as a core part of infrastructure development.

MTN Nigeria, for its part, reaffirmed its commitment to investing in network improvements and addressed complaints about fast data depletion. Winifred Umerah, the company’s General Manager of Customer Strategy Management and Insights, explained that apps can keep consuming data in the background, unlike traditional voice and SMS services.

She said MTN has introduced real-time monitoring tools that show subscribers which apps use the most data and let them compare app usage records with network data logs. Operators can now also run deeper technical checks to establish whether a problem lies with a customer’s device or the network.

The discussions underscored the need for closer collaboration among regulators, operators and consumer groups. With millions compensated and thousands of interventions completed, the NCC says it wants to shift focus to lasting improvements that cut disruptions, build consumer confidence and raise the overall quality of telecom services in Nigeria.

The post NCC Reveals 7,000 Network Interventions as Compensation Reaches 75m Subscribers appeared first on Business Today NG.

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