BUA Group's Abdulsamad Rabiu talks on new plant, expansion plans

The Chairman and CEO of BUA Group, Abdulsamad Rabiu, recently discussed the commissioning of the group's Obu line-one cement factory and the groundbreaking of its second line in a television interview with CNBC Africa. Describing this significant event as a milestone for both the company and the country, Rabiu highlighted the crucial role it plays in line with BUA's expansion plans. Not only is it a momentous occasion for BUA, but it also holds great importance for the Nigerian cement industry and the economy at large. The journey of integrated cement manufacturing in Nigeria, which began just over a decade ago, has seen remarkable growth. Nigeria has transitioned from a nation with under 3 million tons of production capacity to a country poised to have approximately 45 million tons of cement manufacturing capacity by next year – signifying a fifteenfold increase in capacities. This expansion has not only ensured Nigeria's self-sufficiency in cement production but has also positioned the country as a notable exporter of cement. The cement subsector currently represents over 90 percent of Nigeria's mining sector, providing direct employment for around 30,000 individuals and indirectly supporting over 2 million people. Additionally, the sector contributes significantly to the Nigerian economy, generating an estimated $2 billion in foreign exchange annually. The success story of BUA Group's ventures within the cement industry started in 2008 with the acquisition of BUA Cement One, a 2 million tons floating cement terminal capable of processing bulk cement into bags on a vessel. Subsequently, BUA embarked on a series of strategic initiatives, including obtaining a controlling stake in the publicly listed Cement Company of Northern Nigeria PLC in Sokoto and a Dangote Cement in 2009. The company then proceeded to invest in the construction of a greenfield 3 million tons plant in Obu, officially commissioned recently by the Vice President. Amidst the acclaim for the first line's success and impressive efficiency, operating at over 90 percent capacity utilization in its inaugural year – a standout achievement given the industry average of 60 percent efficiency – BUA Group commenced the construction of a second cement plant line of 3 million tons. In addition to this expansion, BUA Group is nearing the completion of another significant project in Sokoto – a greenfield plant with a capacity of 1.5 million tons per annum, representing an investment of over $300 million. Upon completion, the combined capacities of the plants in Edo and Sokoto are expected to reach about 8 million tons. Collectively, these investments, including the Sokoto project and the BUA floating terminal, are projected to surpass $2 billion by next year. The Sokoto cement project, slated for completion by early next year, will have a combined capacity of 2 million tons across both the old and new plants, while the two plants in Edo will total over 6 million tons. Notably, the Sokoto cement project positions BUA Group as the largest employer in the northwestern region of Nigeria, second only to the state government in terms of job creation. Similarly, the investments in Edo, with a projected total investment of over $1.2–1.3 billion upon completion, stand as the largest investment in the southern region, excluding the oil and gas sector. With a visionary approach to expansion and an unwavering commitment to the growth of Nigeria's cement industry, Abdulsamad Rabiu's leadership at BUA Group continues to shape the sector's landscape and contribute significantly to the nation's economic development.