BUA Group chairman, Abdul Samad Rabiu, has confirmed that a landmark agreement to keep cement prices steady for government contractors was initiated by Aliko Dangote. Rabiu disclosed this during a recent Channels TV interview, revealing that the pact is aimed at supporting President Bola Tinubu’s Renewed Hope infrastructure programme.
According to him, Dangote approached him with the proposal, and he immediately agreed to collaborate in the national interest.
He explained that the decision would shield contractors working on Renewed Hope projects from future cement price hikes
What this means is that any company handling these specific government projects will purchase cement at a fixed price, with no increase for the foreseeable future,” Rabiu said. He emphasized that this move is a significant show of support for the federal government’s infrastructure vision.
Rabiu was full of praise for Dangote, describing him as the driving force behind the idea. “Aliko Dangote deserves credit for bringing up this initiative. I agreed right away, and we’ll be sending official letters to the Ministry of Works next week to formalize the arrangement,” he added.
The BUA chairman also commended Engineer Dave Umahi, Nigeria’s Minister of Works, for his decision to prioritize concrete roads. He highlighted that concrete roads are more durable and economical in the long run, which aligns with the current strategy of major cement producers.
To ensure better coordination across the industry, Rabiu revealed plans to reorganize the Cement Manufacturers Association of Nigeria.
He said the board will be refreshed to better support national infrastructure efforts and maintain effective industry wide collaboration.He said the board will be refreshed to better support national infrastructure efforts and maintain effective industry wide collaboration.
Addressing concerns over cement prices in the market, Rabiu defended the current rates, stating that despite public sentiment, cement in Nigeria remains competitively priced. “If you look across Africa, cement goes for at least $120 per ton, so what we’re offering is still affordable considering our production costs,” he clarified.
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