BUA Cement Plc, owned by Nigeria’s third-richest man Abdul Samad Rabiu, recorded a strong financial performance in 2024, with revenue surging to N876.5 billion ($584.6 million), a 90.3 percent increase from N460 billion ($306.8 million) in 2023. Despite rising finance and operational costs, the company’s net income rose 6.4 percent to N73.91 billion ($49.3 million) from N69.45 billion ($46.3 million) in the previous year.
According to its recently published annual report, BUA Cement’s growth was driven by higher domestic cement sales, while sales outside Nigeria fell from N3.92 billion ($2.61 million) to N631.64 million ($425,000), reflecting weaker international demand.
Rising Costs and Financial Strength
Despite the revenue boost, the company faced significant cost increases. Finance costs jumped to N60.04 billion ($40 million) from N19.94 billion ($13.3 million), with additional pressure from higher administrative expenses, foreign exchange losses, and distribution costs.
Still, BUA Cement maintained a strong market position, operating as Nigeria’s second-largest cement producer with an annual production capacity of 11 million tonnes. The company, a key subsidiary of BUA Group, remains a major player in West Africa’s construction industry.
Under Rabiu’s leadership, retained earnings rose from N169.52 billion ($113 million) to N175.7 billion ($117.2 million), while total assets grew from N1.215 trillion ($810.4 million) to N1.57 trillion ($1.04 billion). Total equity also increased slightly from N385.22 billion ($256.9 million) to N388.55 billion ($259.2 million).
Dividend and Future Outlook
BUA Cement’s Board of Directors has proposed a N2.05 ($0.00136) per share dividend for shareholders, slightly up from N2 ($0.00133) in 2023. This reflects the company’s continued commitment to rewarding investors despite macroeconomic challenges.
Looking ahead to 2025, BUA Cement aims to increase revenue, manage rising costs, and expand its market share in Nigeria’s construction sector. Under Abdul Samad Rabiu’s leadership, the company remains a key player in Africa’s industrial and infrastructural development.
