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More hardship for Nigerians as BUA joins Dangote to increase cement price

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3 years ago

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BUA, which reported a profit of N72.3 billion last year, pledged to maintain its price amid an economic decline, but marketers say that has since changed.

Cement makers in Nigeria are adding more burden to prospective homeowners in the country amid high inflation by increasing cement prices in response to overwhelming demand.

BUA Cement, which at N2.421 trillion is Nigeria’s fourth-biggest company by market value, is the latest in the fray having chosen to up the factory price of the product by about N200 per bag, contrary from an earlier vow not to raise prices.

The product now sells anywhere between N3000 and N4000, marketers have told PREMIUM TIMES.

BUA Cement reported a profit after tax of N72.3 billion last year. The firm assured Nigerians in April that it would not scale up the factory price of its product.

“BUA Cement Plc, in the past two days, has been inundated with calls seeking clarification as to whether it is part of a purported price increase of N300 per bag,” its management said in a Twitter statement.

“BUA Cement wishes to inform the public, its distributors, and stakeholders that it has not and does not intend to increase its price of cement now or in the near future, barring any material unforeseen circumstances.

“Whilst we are aware that demand for cement is high with current supply levels not sufficient to meet this increased demand, we do not believe the solution lies in an increase in ex-factory price of cement, especially not at this period.”

In June, the cement maker in a statement to distributors reassured Nigerians of its fidelity to easing the economic meltdown by giving its due in the form of retaining cement price at its pre-July level as the country rebalances from its second recession in four years.

“BUA is also of the firm belief that the current retail prices of cement are higher than normal, hence our earlier communication not to increase ex-factory prices in the foreseeable future,” the document said.

 

“As a responsible corporate entity, we refuse and reject associations with any actions that are deemed capable of projecting any industry we operate as a cartel…

“The timing is not right for any increase on BUA’s part, and we do not have any justifiable business reason to increase our prices (ex-factory) anytime soon. We, therefore, urge our distributors not to panic as well as not engage in any arbitrary hike in the retail price of BUA Cement.”

New price

But a market survey by PREMIUM TIMES shows BUA cement prices have risen in the retail market, and marketers blame the increase on their depot price.

A dealer of the product at Lugbe Airport Road, Abuja, who identified himself as Mr Great said, “the fact is that they are not telling the public the truth. They increase the price literally from time to time.”

“Previously we have been getting at the rate of N3,000 and later N3,300 from the depot. That is the situation now.

“We sold at the rate of N3,200, later N3,300 and presently it is N3,400. So, anyone that is telling you that the price of cement is stable, that person is not telling the truth.”

Two other dealers in Abuja confirmed to PREMIUM TIMES the current price at N3,400, while another put the price at N3,500.

When contacted for clarification, Ortega Ogra, a representative of BUA Cement, ended the call and did not respond to a text message seeking comment.

The chairman of BUA Cement Company, Abdul-Samad Rabiu, said in Abuja on Thursday that cement prices will crash if Nigeria has more producers to meet local demand, according to the News Agency of Nigeria.

 “The high price of cement is of great concern for me; the price is actually high. We are 210 million or 220 million people, 30 million tonnes of cement per annum is actually low for us,” Mr Rabiu said at the annual general meeting of his company.

“No one can really control the price because it depends on demand and supply. We are trying hard to ensure the price is not as high as it is now. Nigeria is growing with a huge economy; we need more plants on stream to cater to the rising demand of cement in the country. Egypt produces 85 tonnes of cement per annum and the demand of cement in that country is just 50 million tonnes per annum. And that is why prices of cement in Egypt are the lowest on the African continent,’’ Mr Rabiu said.

Nigeria’s Cement Pricing trends in Recent Years

Cement firms, like many other producers in Africa’s biggest economy, have the habit of raising prices during an economic recession to cushion the impact of contracting sales. That often comes at a cost to end-users, with dire implications for disposable income and cost of living in a country that has some of the world’s worst unemployment and poverty levels.

Cement prices rose in the midst of the 2006 recession and, as Nigeria slid into another recession in November 2020, the cost of a 50kg cement bag spiralled by one-third from N2,500 to N3,600 within a month.

Cement costs in South Eastern states including Abia, Anambra, Ebonyi, Enugu and Imo quickened by 67 per cent, compared with the prices in 2020, a News Agency of Nigeria market survey showed in April.

“The prices change on daily basis, so as we are talking now, I cannot guarantee the prices it will be sold tomorrow,” Ifeanyi Amadi, a cement trader told NAN, noting a trailer load of Dangote Cement containing 600 bags cost N1.5 million last year but was going for N2.3 million in April.

“The prices change on daily basis, so as we are talking now, I cannot guarantee the prices it will be sold tomorrow,” he said.
“It (the last recession) has a large effect on what the price of building development will be,” Olawale Ayilara, CEO of LandWey Investments, a real estate firm based in Lagos said in a Reuters report in May. “There is nothing the developers can do.”

According to a 2016 World Bank report, final cement prices on the continent are almost twice the global average.

Joachim MacEbong, analyst at consultancy SBM Intelligence said Nigeria’s prices are high when set beside those of other African nations.

Seeking Legislation to Curb Superpowers’ Dominance

Legislators in April demanded an end to the control of the market by three firms: Dangote Cement, (which owns 60.6% market share), Lafarge (which owns 21.8%) and BUA Cement (which owns 17.6%), noting price increase at the whims and caprices of the three could handicap construction needed to spur economic recovery.
Nigeria’s combined cement production capacity is in the neighbourhood of 48 million tonnes and annual demand roughly 21 million tonnes. Yet, the product’s prices now tower above global average of 240 per cent, senators said.

That makes the market “susceptible to price-fixing practices,” they said.

The Senate in a motion requested the loosening of rules on cement manufacturing permits to open up the market to new players in hopes that the policy shift will engender the competition required to lower prices.

Nigeria’s emergence from coronavirus-induced lockdowns has spurred a construction boom, fed by government housing construction, large-scale road and railway construction, real estate development, and the building of private homes.

That is leading Dangote Cement to ramp up capacity by one-third. Its current production capacity is 48.6 metric tonnes per annum (mtpa). Rival BUA Cement expects to add 3 million mtpa to its current 6 million mtpa come year-end.

Culled from the Premium Times News Nigeria

 

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Black Family Loses Out on Discrimination Lawsuit Over Investment Property 

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2 months ago

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March 8, 2024

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The Houstonian black real estate investors filed the federal lawsuit after they said they were prohibited from buying condos in a community advertised to Asian buyers.

Last Wednesday, the racial discrimination lawsuit filed by three Black real estate investors in Texas was dismissed “without the option to refile.”

“The decision hinged less on whether the family had been discriminated against than whether the Fair Housing Act, which prohibits discriminating in the ‘sale or rental of a dwelling,’ had been violated,” the Houston Chronicle reports.

In 2022, James Ra-Amari and his wife Misty Ra-Amari, and Misty’s sister Rosemary Afful filed a civil lawsuit in federal court against realtor Josie Lin, “Lin’s company, UMRE; Grand West Condominiums; Grand West Residential Condominium Association, Inc.; United Property Management; and RE/MAX and EXP Reality, two real estate brokerages.”

The three investors purported that Lin “refused them the option to purchase three condominiums in a newly constructed community. They say that they were denied the units because of their race.”

The Ra-Amaris and Afful sought “compensatory, special, and punitive damages, economic damages for alleged violation of the Fair Housing Act, and infliction of emotional distress.”

According to the civil lawsuit, the condos’ marketing materials were “advertised as ‘…a new option for a safe and simple Asian life’ and [said], ‘Katy Asian town is within walking distance.’”

In addition, there was allegedly an “information packet [that] marketed the complex as a ‘new option for Chinese and Asian communities.’”

The suit also claimed that Lin told the three real estate investors that “all the current owners were personal friends and knew each other.”

The Black family’s argument: Lin’s comments in concert with the promotional materials explicitly targeting “‘Asian communities’ established discrimination.”

But the judge dismissed many of the defendants from the suit, citing that the Ra-Amaris and Afful failed to establish a business relationship between themselves and Lin or that Lin was an agent “acting on their behalf.”

The defendants filed a motion to dismiss the case in its entirety, arguing semantics, pointing out that “a condo is only a ‘dwelling’ if the buyer planned to occupy it, and the family had identified themselves instead as investors in court documents. Additionally, they argued that the family had never indicated in court documents that they had actually made an offer.”

United States District Judge David Hittner largely sided with the defendant’s assertions that the Black family had failed to demonstrate they even “had a case.”

In a written statement, the plaintiffs’ attorney Justin Moore said “This case highlights the ongoing challenges and importance of the Fair Housing Act.”

“Our stance is that real estate investment has historically been a pathway for many Americans to build wealth, and our clients’ endeavors align with this tradition,” Moore continued. “Property at its essence is an investment…Your home is an investment whether you live in it or not.”

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Empowerment Conference ULTRA 2024 Returns to Houston February 3rd

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3 months ago

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January 28, 2024

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HOUSTON, Texas (January 22nd, 2024) – This coming February, Houstonians are invited to ring in the second month of the year with an empowerment conference that aims to keep attendees on track, accountable, and fully engaged to exceed their personal goals in 2024. The ULTRA Conference 2024 (presented by Ultrashift, Inc., a Houston-area based non-profit organization, and hosted by leadership practitioner and author Dr. Harry Akintola) will take place on Saturday, February 3rd at ACF Center (2204 Sharpview Drive) in west Houston.

As citizens worldwide continue to merge into the new year and prepare for February, their hopes of maintaining new resolutions and goals for career, financial, spiritual, and physical advancement often begin to see signs of inconsistency and shakiness. For Dr. Akinola, that is often the sweet spot and perfect timing to teach individuals and organizations how to master their minds and consciousness to yield prosperity. Since its inception in 2009, ULTRA Conference has impacted the lives of thousands and has hosted this event in many cities around the world, including South Africa (Johannesburg and Cape Town), the United Kingdom (London), Nigeria (Lagos), and Tanzania (Dar es Salaam).

According to event organizers, “Ultra 2024 promises to be an immersive ‘inspiritainment’ experience, driving home the point that the future is not something to be passively anticipated but actively shaped.” All of this year’s conference speakers and panelists are award-winning presenters and specialists from across various industries. Presenters and panelists for this year’s conference include keynote speaker and host Dr. Harry Akinola, JP Morgan Chase Head of CCB Talent Roti Balogun, Zeitios AI/ML Consulting CEO Iyanuoluwa Odebode, Ph.D, Wazobia Market Founder & CEO Tunde Fasina, Hampton HGDS Real Estate Investment Trust CEO Candra Brown, Fairdale Realty & Gazette Mortgage President & CEO Victor Lofinmakin, and Transformational Coach Jimi Tewe.

The conference will be sanctioned into a five-part session each dedicated to a range of topics and interactive activities, including Future-Ready Skills (exploring the critical skills necessary for thriving in tomorrow’s job market and how to acquire them), Embracing AI (a deep dive into practical strategies for integrating artificial intelligence into your business model and career, ensuring you stay ahead of the technological curve), Local & Global Business Strategies (gaining  invaluable insights into Houston’s dynamic business environment as a model for development and learning how to leverage  these strategies on a global scale), Citizenry in Action (learning how civic engagement and personal discipline can become powerful tools for societal change and individual success), Diverse Intelligence (discover how balancing the four intelligences can lead to a more satisfying and successful life), with strategic interactive breakout and networking sessions integrated into all  phases of the conference experience.

As an accomplished corporate executive who has headed up several learning and leadership development organizations in many multinational firms (including Standard Bank, Puma Energy and Chase Bank where he currently serves as Executive Director – Head of Talent, Business Banking), Dr. Akinola hopes that individuals will gain momentum and discipline to follow through on every endeavor set for their lives. “Like a butterfly’s journey from larva to flight, you cannot attain or achieve without first transforming. Ultra 2024 – Re-Imagine Your Future is more than an inspirational and educational conference,” said Dr. Akinola. “It’s an experience, a catalyst for introspection, a reawakening of thought, and a reset of aspirations, guiding you to become, empowering you to do, to have, and to soar towards your envisioned future.” Registration for this year’s conference is now open to the general public. To learn more about the ULTRA Conference 2024 and to register, please visit the official website online at www.theultrashift.org, or follow Dr. Harry Akinola on Instagram at Harry Akinola (@HarryAkinola)

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Oil prices edge higher amid mixed US cues, Red Sea strikes continue

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4 months ago

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January 17, 2024

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Investing.com– Oil prices rose slightly in Asian trade on Thursday as severe cold weather appeared to have spurred some disruptions in U.S. production, while military action in the Middle East raged on.

But gains in crude were limited by industry data showing an unexpected build in U.S. inventories. While the cold weather caused some production stoppages, it also appeared to have dissuaded travel, which is a key driver of U.S. fuel demand.

Strength in the dollar weighed on oil prices, as traders priced in a smaller chance of early interest rate cuts by the Federal Reserve, following stronger-than-expected retail sales data.

Oil prices were also reeling from steep intraday losses on Wednesday, after gross domestic product data from top importer China missed expectations for the fourth quarter. Overall growth in 2023 also barely edged past a government target, indicating sustained economic weakness in the world’s largest oil importer.

Brent oil futures expiring in March rose 0.5% to $78.23 a barrel, while West Texas Intermediate crude futures rose 0.6% to $72.90 a barrel by 20:25 ET (01:25 GMT).

Both contracts were trading largely flat so far in 2024, as markets weighed expectations of worsening demand against fears of tighter Middle Eastern supplies. U.S. and UK forces carried out a fresh wave of strikes against the Iran-aligned, Yemen-based Houthi group this week, as the group continued with its attacks on vessels in the Red Sea.

Oil prices had sharply pared intraday losses on Wednesday after top U.S. oil producing state North Dakota said severely cold weather would see output fall by over 50%- a trend that is likely to dent overall U.S. production, which hit record highs over the past two months.

US oil inventories unexpectedly rise, product stockpiles see sustained builds- API

But severe cold weather in the U.S. appeared to also be eating into demand. Data from the American Petroleum Institute (API) showed an unexpected build in U.S. inventories over the week to January 12.

A particular point of contention was gasoline and distillate inventories logging a third consecutive week of strong gains, highlighting weaker demand in the world’s largest fuel consumer. Cold weather shut down travel across vast swathes of the U.S. over the past two weeks.

The API data usually heralds a similar reading from official inventory data, which is due later on Thursday.

Elsewhere, the Organization of Petroleum Exporting Countries released its first monthly report for 2024, slightly earlier than usual amid increased market uncertainty.

The cartel maintained its global oil demand forecast for 2024, and said demand will grow by 1.85 million barrels per day in 2025.

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