...says new entrant distorted market dynamics
BUA Group has blamed rising cement prices in Nigeria on growing market rivalry and disruptions triggered by the entry of a new player into the industry, saying the development unsettled existing pricing structures and intensified competition across regions.
According to the company, shifting market dynamics, logistics pressures and aggressive competition among manufacturers contributed significantly to the surge in cement costs nationwide.
The cement giant added that the industry had witnessed unusual pricing behaviour in recent months as operators struggled to protect market share amid increasing production capacity and regional expansion battles.
The company made this known in the market risks segment of its 2025 annual report and accounts.
“In the past year, competition intensified with the entry of a new player and the acquisition of another, thereby increasing pricing pressures and market share rivalry”, BUA Cement noted.
The company explained that to mitigate the risks, it conducted periodic price reviews, implemented customer loyalty initiatives, secured supply contracts with key construction companies and resumed exports of cement and clinker to neighbouring countries.
It also stated that cement production activities in 2025 faced significant operational challenges, as shortages of dry quarry materials and recurring machinery downtime disrupted efficiency and threatened output levels.
The report was unveiled in Abuja at the weekend by the company’s Chairman, Abdulsamad Rabiu.
The report showed that the situation was worsened by spare parts shortages, employee turnover, workforce disruptions, and security concerns, all of which posed risks to meeting production targets and market demand.
The company said in response to the challenges, it introduced strategic measures to stabilise operations and improve resilience.
According to it, these included deploying a more effective spare parts inventory and tracking system to minimise equipment downtime, recruiting additional equipment operators to strengthen operational capacity, and engaging and upskilling qualified members of host communities to improve workforce stability.
It stated that the interventions helped sustain production continuity and strengthened the company’s ability to navigate operational pressures.
The resumption of cement exports to neighbouring West African states boosted BUA Cement’s revenue to N1.2 trillion in 2025.
In addition to exports, Rabiu revealed that the company also entered the bulk cement distribution business to boost operations.
“In 2025, the Board oversaw management’s entry into a new market segment – bulk cement distribution, along with the resumption of export activities to neighbouring West African markets. These steps further strengthened both the market and geographic diversification”, he said.
He also maintained that, beyond market expansion, the company oversaw several strategic initiatives to enhance operational self-sufficiency and the customer experience.
According to him, these included the development of a polypropylene production plant to support local input substitution, the expansion of LNG capacity at the Sokoto Plant to reinforce energy security and cost stability, and the deployment of a 24-hour service centre to improve customer experience, customer satisfaction, and operational agility.
Providing more insight into the 2025 financial achievements, BUA Cement’s Managing Director, Yusuf Binji, explained that the launch of an app enables each dealer to operate a unique customer wallet, ensuring orders are processed seamlessly.
“This transformation continues to simplify the sales process, eliminate errors, and reinforce BUA Cement’s reputation for reliability and responsiveness.
“At the same time, thousands of our dealers and retailers experienced shorter delivery times and clearer communication through our newly established Customer Support and Market Intelligence Centre”.
He also said that BUA Cement delivered 500 bulk cement tankers to construction firms across the country.
The development comes amid mounting public outrage over soaring building material costs, with stakeholders in the construction sector warning that high cement prices are worsening Nigeria’s housing deficit and slowing infrastructure projects.
Industry analysts who spoke on the matter said the blame game among major manufacturers reflects intensifying competition in a sector long dominated by a few powerful players