BUA Cement Plc has said that cement prices in Nigeria will reduce once key production and logistics costs decline, insisting that recent price increases are largely driven by foreign exchange pressure, energy costs and transportation expenses rather than excessive profit margins.

Speaking at the company’s 10th Annual General Meeting in Abuja on Thursday, the Chairman of BUA Cement, Abdul Samad Rabiu, said recent economic reforms, especially the relative stabilisation of the foreign exchange market, were already easing cost pressures on manufacturers.

According to him, the cement industry is highly exposed to exchange rate fluctuations due to its reliance on imported spare parts, energy inputs, and other production materials.

“The good news is that things are getting better because of the stability… especially shipping prices,” Rabiu said.

He added that the stabilised exchange rate has improved business planning, allowing manufacturers to forecast costs more effectively over a six to nine-month period.

“Today, whatever rate I get, it’s the same rate anybody gets,” he stated.

Rabiu said BUA Cement remains committed to cost reduction through investments in energy efficiency, local production, and logistics improvements, noting that these would ultimately reflect in pricing.

The company disclosed strong financial performance, with revenue rising to N1.2tn in 2025 from N876.5bn in 2024, while profit before tax jumped by 367 per cent to N465.3bn.

The Managing Director, Yusuf Binji, explained that energy accounts for about 60 per cent of cement production costs, making the sector highly sensitive to fuel and foreign exchange shocks.

He said gas costs at one of the company’s plants rose sharply from about N4bn monthly to N16bn due to currency depreciation.

“Price of cement… is a consequence of input costs,” Binji said.

He also noted that diesel prices surged from about N930 per litre to N1,850 within months, significantly increasing distribution expenses.

Binji dismissed claims that cement is selling for as high as N15,000 per bag nationwide, insisting that prices in some regions remain closer to N11,100.

“We will adjust accordingly… to ensure fair and decent prices to Nigerians,” he said.

The company also confirmed expansion plans, including a new production line in Edo State and another in Sokoto, which will raise total capacity to 23 million tonnes per annum.

Despite economic challenges, BUA said it remains committed to expanding production, improving supply, and meeting rising demand driven by infrastructure projects across the country.