‘Instead of transferring the savings to the consumers, dealers opted to capitalize on the opportunity. They sold each bag at exorbitant prices, between N7,000 and N8,000—nearly double what BUA Cement had charged them’
In a poignant revelation at BUA Cement’s 8th Annual General Meeting in Abuja, AbdulSamad Rabiu, the company’s Chairman, shared a sobering account of how noble intentions to alleviate the burden on Nigerian consumers were thwarted by those entrusted to implement them.
Rabiu’s aspiration was clear: sell cement at N3,500 per bag, aiming to pass on substantial savings directly to consumers. Last year, the company successfully offloaded over a million tons of cement at this price to dealers, envisioning a trickle-down effect that would ease the financial strain on everyday Nigerians. Yet, in a disheartening twist, these dealers chose not to fulfill this vision.
Instead of transferring the savings to the consumers, dealers opted to capitalize on the opportunity. They sold each bag at exorbitant prices, between N7,000 and N8,000—nearly double what BUA Cement had charged them. This exploitation of a well-meaning policy not only defeated its purpose but also led BUA Cement to reconsider their strategy.
Rabiu’s reflections underscore a painful truth: even with the best intentions, the company found itself in a vulnerable position. The inability to regulate dealers or influence market pricing left BUA Cement in a precarious situation, where their efforts inadvertently subsidized the profits of others rather than the relief of the end consumer.
The challenges were compounded by Nigeria’s economic turbulence—the devaluation of the Naira and the removal of fuel subsidies further strained the company’s capacity to sustain the discounted pricing. From a foreign exchange rate of N600 to an alarming N1,800 to the US Dollar, the economic landscape shifted dramatically, intensifying the company’s struggle to uphold their pricing policy.
Rabiu’s candid disclosure serves as a testament to the complexities of business ethics and the harsh realities of market dynamics. His company’s experience is a stark reminder of the intricate balance between corporate intentions and market forces. It also highlights the broader issue of how systemic issues can undermine even the most altruistic initiatives.
In the end, the disillusionment expressed by Rabiu reflects a deeper societal challenge: ensuring that goodwill & financial relief reach those who need it most, despite the obstacles posed by those in the supply chain. It is a call to rethink how policies are implemented and monitored, ensuring that the intended beneficiaries are not left behind.
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