Shares Of BUA Cement Drop, Costing The Company and shareholders N162 Billion In One Week

The second-largest cement company in Nigeria, BUA Cement, lost a total of N162.55 billion in the past week as its shares dropped by 4.8% on the Nigerian Stock Exchange.

This saw the market capitalization decline from N2.531 trillion to N2.389 trillion.

The data followed from last week's trading week Monday,15th to Friday,19th disclosed that shares of BUA Cement declined by 6.42% or N4.8 to close lower at N69.95 per share.  However, on Monday the 22nd, the shares rose by 5.08% over last week's closing price of N69.55 to stand at N73.50.  The company started the year with its shares at N77.35 but has lost close to 5% off that price valuation, bringing it to number 113 on the Nigerian Stock Exchange.

Formed in 2008, BUA Cement is a subsidiary of the BUA Group, a Nigerian conglomerate focused on manufacturing, agriculture, and infrastructure which amasses an annual revenue of over $2.5 billion.

It is a result of the Cement Company of Northern Nigeria and the Obu Cement Company being merged in a move calculated to produce the second-biggest cement company in Nigeria, after Dangote Cement. By January 2020, BUA Cement was listed on the Nigerian Stock Exchange with a market cap of $3.3 billion.

While Dangote Cement might hold 93% of the cement market in Nigeria, BUA is a money-maker in its own right as the company dominates the market in Northern Nigeria. Most of the demand for the Dangote Cement is towards the Southern and Western parts of the country, leaving BUA Cement in charge of supplying the North's cement demands.

Last year, BUA Cement struck a deal with Sinoma CBMI of China for the construction of three cement plants in Edo, Sokoto, and Adamawa states which are said to be completed before the end of 2022. These plants are to enable the creation of an additional 3 million tons of cement yearly.

This will bring BUA Cement’s capacity to a total of 20 million metrics, making it the largest contract to ever be awarded in the Cement Industry for the construction of new cement plants at the same time and executed by a single company in the country.