Displaying items by tag: BUA Group

Nigeria: BUA CEO Abdul Samad Rabiu said that the company has agreed with Dangote Group to freeze the price of cement for retailers involved in President Bola Tinubu’s Renewed Hope Agenda projects.

“We have decided that we are going to freeze the price of cement for any contractor that is involved with the Renewed Hope project.” Rabiu said. He added “There will be no increase for the foreseeable future.”

The Premium Times newspaper reported that it was not able to obtain a confirmation from Dangote Group about the price freeze.

Nigeria: BUA Cement recorded sales of US$423m throughout the first nine months of 2023, up by 27% year-on-year from US$333m in the first nine months of 2022. Growth in the group’s cost of sales outstripped revenues growth, at 31%, to US$236m. Energy costs rose by 27% year-on-year, while raw materials costs rose by 47% year-on-year. BUA Cement’s profit grew by 2.8% to US$96.4m, from US$93.9m.

Nigeria: BUA Group chair Abdulsamad Rabiu has told investors that BUA Cement will commission its upcoming Sokoto cement plant by 31 January 2024, the Punch newspaper has reported. Rabiu said that the producer is ‘working tirelessly’ to deliver the plant on time, in order ensure a local supply of cement at a reasonable price.

Nigeria: Dangote Group has described online reports that it would halve the price of its 50kg bags of cement as ‘fake news.’ Anthony Chiejine, Spokesperson for Dangote Group, was responding to apparently unfounded reports that prices would tumble on 1 October 2023.

Earlier, Bahir Ahmad, a media aide to former Nigerian President Muhammadu Buhari, saying on X (formerly Twitter) “The Dangote Group has denied the trending reports that it has reduced the price of cement.”

The online rumour is thought to have gained traction after Dangote’s rival BUA Group chair Abdul Samad Rabiu disclosed that he had discussed a substantial potential price reduction with current President Bola Ahmed Tinubu earlier in September 2023.

The prospect of lower cement prices in Nigeria is often reported, but prices remain stubbornly high. On 28 September 2023, the regional monarch of Idjerhe Kingdom, King Udurhie I, called on the new national President Bola Ahmed Tinbu to reopen the mothballed Madewell Cement Factory in Idjerhe, and five others like it throughout Nigeria, in an effort to increase supply and introduce competition to a market dominated by two or three major players.

King Udurhie toured the Madewell facility with regional chiefs, stating “It is 15 years ago that this project was brought down by cabals in the cement industry. As a King of this land, I see pain and I believe that, with the coming in of President Tinubu, a man who is business-oriented, he knows the importance of the cement sector to the Nigerian economy. The cement industry is too large for one man or one company to deal in, no individual can do this.”

Nigeria: BUA Cement recorded US$279m in sales in the first half of 2023, up by 17% from US$238m a year earlier. MarketScreener News has reported that the producer's net income rose by 3.7% in the six-month period, from US$77.4m to US$80.3m.

Nigeria: BUA Cement plans to use loans worth US$500m towards the construction of two new 3Mt/yr cement plants in Sokoto State. When operational, the new plants will increase the producer's installed capacity by 55% to 17Mt/yr. Local press has reported that BUA Cement plans to run both cement plants using solar power, and to produce cement using alternative fuel (AF). Additionally, the producer will use a portion of the funding to replace part of its diesel-fuelled cement truck fleet with new natural gas-fuelled models.

Of a total US$500m in financing secured by BUA Cement on 5 June 2023, the International Finance Corporation (IFC) lent US$161m (32%) and African Development Bank, Africa Finance Corporation and the German Investment Corporation jointly lent US$245m (49%), with the remainder advanced by institutional investors.

Nigeria: BUA Cement has secures a new loan worth US$500m from the International Finance Corporation (IFC). The producer informed the Nigerian Exchange (NGX) that it plans to use the fund for capital expenditure (CAPEX) investments in new projects.

Nigeria: BUA Cement has donated a solar motorised borehole and medicines worth US$59,600 to eight host communities in Wamakko, Sokoto State. The company says that the efforts are aimed at alleviating the effects of local water scarcity and medicinal supply issues.

Nigeria: BUA Cement recorded consolidated sales of US$619m in 2021, up by 23% year-on-year from US$504m in 2020. Bagged cement sales rose by 23% to US$618m, while bulk cement sales rose by 40% to US$1.48m. Cost of sales was US$328m, up by 19% year-on-year, and the company recorded a profit after tax of US$217m, up by 25% from US$174m in 2020.

Nigeria: BUA Cement’s Sokoto cement plant has resumed operations following a fire that killed three workers. The Sun newspaper has reported that the fire began at a diesel storage tank depot near to the plant, where third-party contract workers were welding a diesel storage tank. The group said that it activated a swift response in order to prevent any escalation of the incident.