BUA Cement has blamed intensified competition, driven by the entry of a new player and the acquisition of another, as some of the reasons the price of cement has kept an upward trajectory in the last few months.

According to the market risks segment of its 2025 annual report and accounts, BUA Cement noted: “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.”

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 yesterday 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.

BUA Cement recorded revenue of N1.2 trillion, up from N876.5 billion in 2024.
Profit before tax rose by 367 per cent to N465.3 billion from N99.6 billion, while profit for the year increased by 381.7 per cent to N356 billion from N73.9 billion in 2024.

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.

He added: “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 binged that BUA Cement delivered 500 bulk cement tankers to construction firms across the country.