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Bua: We gave cement to dealers N3,000 to crash price, yet they sold to consumers at N8,000
AbdulSamad Rabiu the billionaire businessman and chairman of BUA Cement, has narrated how dealers of cement frustrated his company’s plan to sell cement at N3,500 per bag last year.
He stated this at the 8th Annual General Meeting of the company in Abuja, adding that while his company sold over a million tons of cement to dealers at N3, 500, per bag, with the intention that they would pass the benefits to end-users, the dealers sold a bag of cement to consumers at between N7000 and N8,000.
He said the company had to abandon the policy as its intervention was not to subsidise dealers.
According to him, BUA Cement could not stop the dealers whom he said made huge profits from the high margin because the company had no control over prices in the open market.
He added that the Naira devaluation last year and the fuel subsidy removal also played roles in making the policy unsustainable.
Rabiu stated: “So, a lot of the dealers took advantage of that policy. Rather than pass the low prices to the customers, they were selling at even double the price we sold to them.
“Some were selling at N7, 000 and 8 000 per bag. They made a lot of money with the very high margin. I think we had sold more than a million tons at N3,500 before we realised what the dealers were doing.
“And then, because of the issues that Nigeria faced at the time about devaluation of the Naira last year and the removal of fuel subsidy, we could not continue that policy.
“We wanted that price to stay at that level but dealers refused. So, we could not sustain that simply because we did not want to be in a situation where we are subsidizing dealers.
“I’m referring to the point when the foreign exchange rate moved from about N600 to maybe N1,800 to the US Dollar. So, it became even more challenging and more difficult for us to actually sustain that price policy.”
He said, however, that the company had continued to work towards making sure that prices did not escalate at levels of the percentage increase of the Naira devaluation.
His words, “If you see the exchange rate then, and the exchange rate today, you will see that cement is actually cheaper today than what it was last year, the reason being that if the dollar was up the costs go up by same margin and the price of cement should actually be, maybe, N10,000 Naira per bag.
The price of cement, if you take the N4,000 that it was in the beginning of last year, at 4,000 and today’s N6,000, it’s only 50% increase.
“So, we directly pushed to ensure that the price of cement is not getting higher than what it is today.
“But then again, you have areas where everything is dollar-dominated. Energy is the biggest cost. And our energy today is denominated in dollars. We buy gas to power our plants mainly. And gas is priced in dollars.”
Rabiu disclosed that one of BUA’s plants’ monthly invoice is about N15 billion or maybe N16 billion monthly. It used to be N3 or N4 billion. That is just one example.”
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Petrol price to drop by N50 as independent marketers load at N990/litre at Dangote
The Independent Petroleum Marketers Association of Nigeria, IPMAN has disclosed that over 30,000 of its members are set to buy Premium Motor Spirit, popularly called petrol, from the Dangote Petroleum Refinery in bulk.
IPMAN also revealed that the price of petrol from the refinery was N940/litre and N990/litre when purchased using ships and trucks, respectively.
Speaking on Channels Television on Tuesday, IPMAN President, Abubakar Garima, said the pump prices of petrol at its retail outlets will drop following the agreement with the Dangote refinery to lift products directly from the plant.
On Monday, IPMAN agreed with the Dangote refinery to directly lift petrol, diesel, and other petroleum products.
This agreement follows months after the Nigerian National Petroleum Corporation suspended its plan to serve as the sole off-taker of petroleum products from the 650,000 barrels per day refinery.
The IPMAN president explained that the Dangote refinery had been obliged to allow marketers to lift PMS, AGO, and DPK directly for onward supply to their depots and retail outlets but didn’t reveal the price.
Giving an update on pricing during the interview, the IPMAN national officer said the Refinery has provided two different rates for marketers based on their preferences.
He said marketers can load at the gantry at a price of N990 per litre or N940 through vessel transportation.
Garima said, “Presently, we have been given two different arrangments on how to buy fuel from the refinery. There is the one that we can load the vessels and carry to our various depots at the rate of N940 per litre. Then for the depots, it is at the rate of N990 per litre.
“The difference is because we have to load it and carry it to another part of the state. We use vessels to carry these products and there is another one to load from the gantry.
“For Port Harcourt, Warri, Calabar, we have to use vessels because there is no Dangote loading gantry there, we have to carry it to our private depot and discharge and distribute it to our members.”
News
Zulum reinstates 23 suspended health workers, deploys others
Borno State Governor, Professor Babagana Umara Zulum, has approved the reinstatement of 23 health workers previously suspended for absence from their duty posts at Gwoza General Hospital.
This decision was announced during the Governor’s inspection of the hospital’s newly renovated maternity and child center, as well as other ongoing projects.
Dauda Iliya, Spokesperson and Special Adviser to the Governor on Media, in a statement Tuesday, said the health workers had initially been suspended after Zulum’s earlier visit, where he found them absent from their duties.
Addressing the staff, Governor Zulum emphasized the importance of dedication to work and assured them of improved working conditions and other incentives.
“Complaints were made about the 23 medical workers who were absent during my last visit,” he noted. “No one is perfect, so the government has pardoned them, although no arrears will be paid.”
In response to a staff shortage raised by the Principal Medical Officer of Gwoza General Hospital, Dr Nuhu Nasiru Wakawa, Governor Zulum directed the immediate deployment of four additional doctors and ten nurses to the facility.
He further announced that Gwoza General Hospital will be upgraded to support training for nursing students from the new school of nursing under construction.
“The Commissioner of Health, together with the Chief Medical Director of the Hospitals Management Board, will work on this deployment,” Zulum added. “We will also recruit community health workers from Gwoza to strengthen local healthcare services.”
In addition to his healthcare initiatives, Governor Zulum inspected the crusher plant base under construction in Pulka, which will produce up to 300 tonnes of stones per hour.
He said the completion of the crushing and asphalt plants is expected to facilitate new road networks across Borno State.
The Governor also visited other development sites, including the 500-unit mass housing project in Wala B, Gwoza Local Government Area, and a proposed site for a high Islamic school in Bama, underscoring his administration’s commitment to infrastructure and educational advancement.
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Dangote to begin direct supply of petroleum products to marketers
Independent Petroleum Marketers Association of Nigeria has secured an agreement with Dangote Refinery to lift products directly.
IPMAN’s National President, Abubakar Garima, announced this at an ongoing press briefing on Monday in Abuja, following a meeting of the National Working Committee of the Association.
He said the partnership would ensure a steady, affordable supply of PMS products nationwide.
“After meeting with Aliko Dangote and his management team in Lagos, we are pleased to announce that Dangote Refinery has agreed to supply IPMAN with PMS, AGO, and DPK directly for distribution to our depots and retail outlets.”
Garima urged IPMAN members to support Dangote Refinery, citing the benefits of backward integration and its positive impact on Nigeria’s foreign exchange market.
“IPMAN members should rely on Dangote Refinery and Nigerian refineries for white products, creating more job opportunities and supporting President Bola Tinubu’s renewed hope agenda.”
The latest development concludes several months of negotiations between both parties and is expected to increase efficiency, affordability, and economic growth.
The Dangote Refinery, the largest in Africa and Europe, has already commenced the production of petrol, diesel, and aviation fuel, with plans to supply products to over 30,000 IPMAN members and 150,000 retail outlets nationwide.
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