Nigerian cement-producing giants, Dangote Group and BUA are currently locked in a war of supremacy expressed now in a new battle over reduction of price.
A bag of cement currently sells between N5,000 -N,6,000. However, the Cement Producers Association of Nigeria has warned that the ongoing plan of the federal government to introduce concrete roads will raise the price of cement to N9,000 per bag.
Credible sources said President Bola Tinubu whose government is currently battling a weakening economy, insecurity and criticism over the fall-out of fuel subsidy removal is also following developments with the two major companies closely given their significance to the infrastructural projects and constructions across the country.
Last week, the Chairman of BUA Group, Abdul-Samad Rabiu met with the president where he announced plans to reduce the price of cement in Nigeria.
Addressing State House correspondents, Rabiu said to support the efforts of the government to crash the price of the product, the company would add two new plants at the end of the year or early next year which will be commissioned by President Tinubu.
He said: “Let me thank His Excellency Mr. President for graciously receiving me today. I came to intimate His Excellency on the affairs of our cement business. We have two new lines of 3 million tonnes each that we will be commissioned by the end of the year. So I came to intimate His Excellency and also to explain to him the efforts we’re making in trying to support the efforts of the government in bringing down the price of cement.
“We are commissioning 6 million tonnes by the end of the year. And by the way, His Excellency has agreed to come and commission the plants, sometimes in December or early January next year. So I explained to him and we want to support the efforts of the government in bringing down the price of cement. By the time these lines are commissioned, BUA Cement will be producing about 17 million tonnes per annum. And with that, we intend to bring down the price of cement from its current level of N5000 or N5500 per bag to maybe N3000 to N3500 per bag”.
Shortly after the announcement by BUA, many netizens and some online handles who are apparently worried by the exorbitant prices of cement in the country took to social media to call out Dangote and ask him to emulate BUA by reducing the price of his cement.
Some others also claimed that while a 50kg bag of Dangote cement sells for N5,500 in Nigeria, the same bag is sold at the equivalent of N,2000 in neighbouring countries such as Benin Republic and Niger.
Online reports surfaced last weekend that like BUA, Dangote has also crashed the price of cement from N5,500 to N2,700.
The company however in an exclusive chat with Quest Times denied the reports saying it is falsehood by some online mischief makers.
However, our source said while Dangote has enjoyed the favour from past governments, “Rabiu may want to take advantage of the cement war to curry President Tinubu’s favour ahead of Aliko.”
The Presidential Villa source added that shortly after Tinubu won the presidential election, Dangote tried to get his ears and appease the then President-Elect regarding Emefiele. Dangote who had benefitted immensely from the former governor of the Central Bank of Nigeria, Godwin Emefiele, especially in regards to the supply of foreign exchange favours went with Gilbert Chagoury to plead for soft-landing for Emefiele
“They both pleaded on behalf of Emefiele who also tried to explain that his New Naira redesign and swap policy was not a personal attack”.
“At the meeting, Tinubu although didn’t outrightly commit himself suggested he would consider the plea, but the President went ahead to investigate Emefiele because the evidence against him was so overwhelming.
This is however a big loss and worry for Dangote,” another source claimed.
“After the Federal Government suspended Emefiele and he was arrested, he entered into plea bargaining and promised to return N350bn but the federal government insisted that the amount he should refund is N1tr. The federal government has agreed on plea bargaining in principle and that was why Emefiele quietly resigned but they still want to get more money from him”.
“So, Rabiu knows Dangote is not really in the good books of the President and he is trying his best to warm his way into Tinubu’s hearts. The announcement of the reduction in the price of cement which is good news to Nigerians and a big plus for the Tinubu administration is a good way to achieve that”.
As for Dangote, the Presidential Villa source confided that the top African billionaire “was still in the wilderness regarding what to expect from Tinubu next, seeing that Emefiele who was his big supporter is still in serious soup.”