Why BUA Cement's ₦3,500 price crash failed as cement now hits ₦15,000

The ₦3,500 ex-factory price BUA Cement announced in October 2023 did not deliver the nationwide retail relief Nigerians hoped for. Cement prices in 2026 are now as high as ₦15,000 per 50kg bag, and the Federal Competition and Consumer Protection Commission (FCCPC) has opened a fresh investigation into the disparity.

The 2023 price cut that raised hopes

On October 1, 2023, BUA Cement announced a major price reduction. The company said it would sell a 50kg bag at an ex-factory price of ₦3,500, with the new price taking effect from October 2, 2023. At the time, cement was selling for around ₦10,000 per 50kg bag, depending on the brand and location.

BUA said the reduction was brought forward following a review of its operations and its commitment to making cement more affordable. The company also said all pending, undelivered orders already paid for at the old prices would be reviewed downward to ₦3,500 per bag, Daily Trust reported.

BUA added that the ₦3,500 price was not necessarily the end of the road. The company explained that the completion of new plants would increase its production capacity to 17 million metric tonnes per year, creating room for further price reviews.

Industry observers expected the ex-factory reduction to translate into retail prices of roughly ₦3,850 to ₦4,000 per bag, depending on distribution costs and dealer margins. The announcement was widely welcomed because cheaper cement could reduce construction costs and make housing more affordable for Nigerians.

Why the price crash failed at retail level

The price reduction did not produce the nationwide retail impact many Nigerians expected. In early 2024, BUA Group Chairman Abdul Samad Rabiu explained that the company had faced challenges in getting dealers and depots to fully pass the reduction to consumers.

BUA later maintained that the ₦3,500 price cut did happen, but stressed that it was an ex-factory price, rather than the final retail price paid by consumers. Kabir Rabiu, Group Executive Director of BUA Group, also said the company maintained the reduced price for about five months across its plants.

This distinction became central to the controversy. While BUA said it fulfilled its commitment, many consumers struggled to find cement selling anywhere close to ₦3,500 per bag.

FCCPC steps in as prices hit ₦15,000

Fast-forward to 2026, and the cement market looks dramatically different. Market research showed cement selling for about ₦14,000 to ₦15,000 per 50kg bag in parts of Nigeria, several times the price BUA announced in 2023. The sharp increase has renewed concerns about production costs, distribution, competition and pricing across the cement industry.

On Tuesday, August 18, 2026, the FCCPC said its investigation uncovered significant disparities in cement prices between Nigeria and some other African countries. According to the commission, its comparison of cement prices in Togo, Kenya and Tanzania showed that Nigerians were paying about ₦5,700 more than consumers in those countries.

The commission has invited major cement manufacturers to explain the price disparity and address concerns surrounding pricing in the industry. The FCCPC has also questioned why prices remain significantly higher than in several other African countries despite Nigeria's huge limestone reserves and substantial production capacity.

For Nigerians planning to build homes, developers and other construction businesses, the outcome of this investigation matters. The ₦3,500 BUA price announcement may now look like a distant memory, but the debate it triggered over affordable cement has returned with renewed force. As regulators scrutinise the industry, cement buyers will be watching closely for any meaningful relief.