I'm paying 15 billion Naira Every Month In One of My Factories, Just for the Gas We Consume - Rabiu

 The CEO of BUA Group, AbdulSamad Rabiu, has revealed that BUA and Dangote Group have reached an agreement to keep cement prices steady for contractors supporting President Bola Tinubu’s Renewed Hope Agenda, Premium Times reported.

Speaking to journalists after a meeting with President Tinubu at the Presidential Villa in Abuja, Rabiu said that he and Dangote's Chairman, Aliko Dangote, have agreed to back the president’s vision by helping control cement prices.

“We’ve decided to freeze the price of cement for any contractor involved in Renewed Hope projects,” Rabiu said.

He addressed concerns over the current cement price, which sells for around N9,000 per bag. According to him, the price isn’t as high as people think, especially considering the economic situation.

“Right now, $1 is about N1,600. So if you’re paying N180,000 per ton, which is around N9,000 per bag, that’s only about $110 to $120 per ton. Even if it hits N10,000 per bag, that’s still within the range,” he explained.

Rabiu pointed out that high costs of production, mostly paid in dollars, play a big role. For example, one of his cement plants, the Obu Plant spends N15 billion each month on gas, up from N5 billion a few years ago.

"One of my factories, the Obu Plant, I’m paying N15 billion every month, just for the gas that we consume on a monthly basis, to NGML; two, three years ago, we were paying N5 billion,” he said.

He also noted that spare parts, hiring foreign experts, and mining operations all require dollar payments. Despite all this, Rabiu said they’ve worked hard to keep the price between $110 and $120 per ton to support development efforts and reduce the burden on contractors and Nigerians.