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Cement: How dealers frustrated our N3,500/ bag policy – BUA

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The Chairman of BUA Cement, Alh. Abdul Samad Rabiu, yesterday recounted how cement dealers frustrated his company’s N3, 500/bag policy, last year.

He spoke at the 8th Annual General Meeting of the company in Abuja.

He said that while his company sold over a million tones 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 as high as N7000 and N8,000.

A ton is equal to 20 bags of 50 kg weight.

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He said the company had to discontinue 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.

Alh Rabiu said, “We were selling cement at N3,500 with the expectation that the dealers and the retailers would pass the benefits of the low price to the end-user customers.

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“It’s such that whatever price you sell cement at, you pay. It doesn’t matter what happens if the price doubles or triples if it’s less than that. So, we didn’t actually have that price.

“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 from.the very high margin. I think we had sold more than a million tons, yes 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.

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“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. We are subsidizing the dealers.

“So, I’m referring to the point where the FX rates, the exchange rates, from when we decided to sell it at N3,500, the rate was about N600 to maybe N1,800, N1,900 to the US Dollar. So, it became even more challenging and more difficult for us to actually sustain that price.”

The Chairman said, however, that the company had continued to work towards making 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, we see that cement is actually cheaper today than what it was last year.

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“The reason being that if the dollar was up, so we see there is, the price of cement should actually be maybe N10,000 Naira per bag. The dollar exchange rate has actually been goin up you know. 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. You know, it’s not correct.

“And our energy today is denominated in dollars. We buy gas to power our plants mainly. And gas is priced in dollars.”

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The Chairman revealed that one of BUA’s plants monthly invoice, NGKW is about N15 billion Naira for one plant, one factory.

Maybe N16 billion monthly. It used to be N3 or N4 billion Naira. That is just one example.”

According to the financial report presented by the Board of the company, the company recorded a strong revenue growth of 27.4% to N460 billion (2022: N361 billion), resulting from its increasing market share.

However, with the devaluation of the Naira in June 2023, and its continued depreciation, as well as growing inflation, the Company experienced increasing price pressures which affected production costs, which increased by 39.5% to N276 billion (2022: N197.9 billion).

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Within this period under review, a net foreign exchange loss of N70 billion (2022: N5.5 billion) was recorded, with N52.5 billion attributed to finance costs.

This was associated with the construction of an additional 3mmtpa lines at Obu and Sokoto, and the sum of N17.5 billion was attributed to foreign trade payables.

Despite these challenges, the Company reported a net profit after tax of N69.5 billion and declared a N2 dividend per share.

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59 Traff!cked Kids, Aged 4 To 12, Found In Bus In FCT

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By Kayode Sanni-Arewa

The Federal Capital Territory (FCT) Police Command says its patrol and guard unit intercepted 59 male children suspected to be victims of human trafficking

According to the FCT Police Commissioner, Olatunji Disu, the children are aged between 4 and 12.

Disu, at a press briefing on Wednesday, said the incident has been classified as a case of suspected child abuse and trafficking, given the absence of proper documentation or parental consent for the movement of the minors.

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Disu said a preliminary investigation revealed that the children, who came from different families, were being transported by one Idris Usman, a male resident of Nasarawa State.

He said Usman allegedly travelled to Kano State to convene the children en route to Nasarawa State under the pretext of training them.

The statement reads in part, “On 6th January 2025, at about 1530 hours, a team led by Deputy Superintendent of Police (DSP) Sarki Umar intercepted a white Peugeot 15 bus with Reg. No. KMC 283 ZJ along the Abuja-Kano route.

“The vehicle was driven by Ali Ibrahim, a male resident of Kano State, accompanied by his motor boy, Al Hassan Ibrahim, also of Kano State.

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“The bus was found to be transporting 59 male children aged between 4 and 12 years. Preliminary investigations revealed that the children, who came from different families, were being transported by one Idris Usman, a male resident of Nasarawa State. He allegedly traveled to Kano State to convene the children en route to Nasarawa State under the pretext of training them.”

“At present, the suspects, the vehicle, and all the children are in custody while a thorough investigation is underway. The Police Command is working closely with FCT Social Development Secretariat (SDS), to ensure that the children are safely reunited with their families and to bring all those involved in this act to justice,” he added.

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Just in: FG Endorses Telcos Tariff Increase

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By Kayode Sanni-Arewa

The Minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani, says that telecom tariffs will soon increase but assures Nigerians that it will not be the 100 per cent that telecom operators are pushing for at the moment.

The Minister disclosed this at a stakeholders’ meeting with Mobile Network Operators (MNOs) on Wednesday in Abuja. He said consultations and engagements were ongoing to arrive at an acceptable rate, assuring that the Nigerian Communications Commission (NCC), would soon approve the new tariffs and make it public to Nigerians.

“You have seen over the past weeks that there has been agitation from some of these companies to increase tariff. They are requesting for 100 per cent tariff increase

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“But it will not be by 100 per cent. We are still looking at that study and NCC will come up with a clear directive on how we will go about it.

“We want to strike the balance as a government to protect our people, but also protect and ensure that these companies can continue to invest significantly.

“We need to ensure that as a sector, we get our acts together, ensure that from the regulation side, we put the right regulations in place that can ensure the growth of this sector.”

The Minister also noted that the Federal Government would no longer leave investments on infrastructure in the sector to private companies alone

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As a country, over time, we have left this investments in the hands of the private sector. They typically invest where they can see returns in the short to medium term.

“We will not want this conversation to just be about tariff increase. I think what the world is talking about today is meaningful connectivity.

“You want to have access to very good quality service.

“A part of it that the consumers may not be aware of is the investment that needs to go into the infrastructure that is used to deliver these services,” he said.

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The Executive Vice-Chairman (EVC), of the NCC Dr Aminu Maida said that the meeting with stakeholders was about the sustainability of the industry.

“We have looked at all of these factors, and that is why, like the Minister said, it is not likely that we are going to approve 100 per cent tariff increase.

“I know that Nigerians are agitated to hear the exact percentage approved. There is still some stakeholder engagements that we are going through, but you will hear from us within a week or two.”

He said that the NCC had put a number of tools and instruments into place by revising its quality of service regulations for compliance service quality.

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He said that the MNOs must comply simplified templates to show Nigerians charges per minute for voice calls, SMS and a megabyte of data.

“We are moving away from the regime where you will have a main rate, then you will now have a bonus which is at a different rate.

“It makes it often complicated and difficult for Nigerians to actually understand what they are being charged for.

“This is one of the things when we took a lot of time over the past year looking at data there is this agitation that the MNOs are stealing our data,” he said.

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The CEO of Airtel Nigeria, Dinesh Balsingh, represented by Femi Adeniran, Airtel media spokes person, noted that for the telecoms commitment to delivering superior connectivity and fostering digital inclusion, there is need for tariff increments.

“The economic realities of rising operational and capital costs, necessitated the proposed tariff adjustments.

This is aimed to ensure the long-term sustainability of the sector while unlocking significant benefits for Nigerian consumers,” he said.

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Two Nigerian Catholic Sisters Abducted In Anambra

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By Kayode Sanni-Arewa

Two Catholic reverend sisters, Vincentia Maria Nwankwo and Grace Mariette Okoli, were abducted by unknown gunmen on Tuesday evening in Anmbra State.

The nuns were returning from a vocational association meeting in Ogboji when they were taken along Ufuma Road in the Orumba South local government area.

Sr. Vincentia Maria Nwankwo is the Principal of Archbishop Charles Heerey Memorial Model Secondary School, Ufuma, while Sr. Grace Mariette Okoli is a teacher at Immaculata Girls Model Secondary School, Nnewi.

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Their abduction was announced on Wednesday in Awka, in a statement signed by Sister Maria Sobenna Ikeotuonye, IHM Secretary General, on behalf of the Sisters of the Immaculate Heart of Mary, Mother of Christ.

Although the statement did not say whether the abductors had established contact with any of the victims’ families or groups, it enjoined all priests, religious, and lay faithful to offer fervent prayers and supplications to God for the unconditional release of the sisters.

The Anambra State Police Command has confirmed the incident and launched a joint operation to rescue the kidnapped sisters.

Commissioner of Police Nnaghe Obono Itam visited the scene and assured that the command is working with clues to arrest the suspects and rescue the victims.

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A statement issued by the spokesperson for the state police command, SP Tochukwu Ikenga, on Wednesday, said, “Police-led Joint Operation is already ongoing for the possible rescue of two catholic nuns allegedly kidnapped along Ufuma Road, Orumba North Local Government.

“The sad incident occurred in the evening of yesterday 7/1/2025 when the nuns were returning from a Vocational service meeting in Ogboji.”

Unfortunately, insecurity has become a major concern in Anambra State, with frequent abductions.

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