BUA Cement projects that its net income could rise to as much as N250 billion at the end of 2025 on reduced foreign exchange losses and improved production capacity.
This is according to Abdul Samad Rabiu, the chairman of BUA Cement Plc, during the 9th Annual General Meeting of the company on Monday.`
BUA Cement nearly doubled its revenue in 2024 with top-line growth rising to N877 billion, from N460 billion in 2023, despite foreign exchange losses of N93.9 billion.
This is as the cement maker’s profit before tax rose by 48.2 percent to N99.63 billion. Earnings per share increased to N2.18 in 2024 from N2.05 in 2023, representing a 6.3 per cent increase.
As the country’s economic fundamentals increase, BUA Cement’s profit after tax in the first quarter of 2025 stood at N81 billion, higher than its entire earnings for 2024.
Read also: Five things to note from BUA Cement’s Q1 performance
CBN’s reforms stopped lobbying for FX
The various foreign exchange reforms implemented by the Central Bank of Nigeria have helped abolish the need for companies to lobby for FX, according to Abdul Samad Rabiu, the chairman of BUA Cement Plc.
Rabiu, one of the richest men in Nigeria, said the new FX regime is more market-driven and transparent as against the former FX rules which created artificial dollar shortage and widened the gap between the official and parallel market.
“I’ve only seen the current CBN governor maybe twice since his appointment. That’s because I don’t need him,” Rabiu said. “Before now, I used to visit the CBN every two weeks to lobby for FX. That was the only way to survive.”
In his remarks, Rabiu expressed optimism that the naira would continue to strengthen, projecting that the exchange rate could fall to around N1,200/$ in the coming months, down from highs of nearly N2,000 earlier in the year.
Read also: BUA Cement, others fuel market’s N275bn loss ahead of T-Bills auction
According to him, the stability of the naira has begun to ease prices of commodities, including cement and food items, emphasising that prices are set to moderate.
Addressing concerns over cement prices, Rabiu explained that the high cost of production—driven by FX volatility, energy costs, and imported equipment—contributed to recent price hikes. He said that despite these challenges, BUA had tried to keep prices stable.
Rabiu confirmed that the company had no immediate plans to expand beyond its current 20 million metric tonne capacity, following the recent commissioning of two additional cement lines in Sokoto and Edo States.
Rabiu also reaffirmed BUA’s commitment to shareholder value, noting that a N2.05 dividend per share, representing a 94 percent payout ratio, would be distributed.
