BUA Foods Plc, one of Nigeria’s leading food manufacturers, has announced its unaudited full-year 2024 financial results, reporting record-breaking revenue and profit growth despite significant economic challenges.

The company achieved a 109.3% increase in revenue, reaching N1.53 trillion, reflecting its robust expansion strategy, volume growth, and strong pricing execution.

BUA Food’s gross profit grew by 107.9% to N541.71 billion, while profit after tax surged by 145.3% to N274.95 billion, demonstrating its resilience in a challenging macroeconomic environment. Earnings per share (EPS) rose by 145.3% to N15.27, further cementing the company’s strong financial position.

BUA Foods’ exceptional performance in 2024 was driven by expansion across all product lines, strategic investments, and effective cost management. The company successfully navigated supply chain disruptions, inflationary pressures, and foreign exchange fluctuations, which affected businesses across Nigeria’s manufacturing sector.

Revenue increased by 109.29% to N1.53 trillion, compared to N729.4 billion in 2023, reflecting higher demand, increased production capacity, and improved distribution efficiency. Gross profit surged to N541.71 billion, from N260.5 billion, indicating strong cost controls and pricing power.

Profit after tax recorded a significant 145.3% growth, rising from N112.1 billion in 2023 to N274.95 billion, reinforcing the company’s market leadership. Additionally, EBITDA increased by 131.5% to N499.4 billion, reflecting improved operating efficiencies.

Despite inflationary pressures, BUA Foods kept operating costs in check, although selling and distribution expenses increased by 27.7% to N60.11 billion, due to higher logistics and supply chain costs.

Strong Growth Across Key Product Segments

BUA Foods experienced significant growth across its major product lines, indicating increasing consumer demand and market expansion.

• Sugar sales rose by 74% to N733.8 billion, reinforcing BUA Foods’ dominant position in the sugar market.
• Flour sales surged 172% to N589.5 billion, driven by increased industrial and retail demand.
• Pasta sales jumped by 125% to N197.6 billion, benefiting from a growing consumer preference for locally produced pasta.

This broad-based revenue expansion highlights the effectiveness of BUA Foods’ product diversification strategy and investment in production capacity.

Speaking on the company’s performance, Managing Director, Engr. (Dr.) Ayodele Abioye described the results as a testament to BUA Foods’ ability to navigate economic challenges and create sustained value for stakeholders.

“We are delighted to report an exceptional performance in FY 2024. Despite significant macroeconomic challenges, our business effectively managed supply chain costs and foreign exchange losses, ensuring uninterrupted operations.

“The cumulative impact of our expansion strategy has strengthened our ability to meet growing consumer demand while improving internal operational efficiencies. BUA Foods achieved an aggregate volume growth of 18% across our divisions.

“We hit a milestone revenue of N1.53 trillion, reflecting a 109% increase, while profit after tax surged 145% to N274.95 billion. This performance has reinforced our market leadership and competitive position in the industry,” he said.

Looking ahead, Engr. Abioye expressed optimism about future growth, stating that stability in the macroeconomic environment would further enhance the company’s operations.

“With the concerted efforts of our board, management, and frontline associates, we remain focused on addressing food supply challenges in Nigeria and across Africa. Our strategic investments and expansion initiatives will continue to drive strong performance and long-term value creation for all stakeholders,” he added.

BUA Foods has consistently outperformed the industry, leveraging its integrated supply chain, innovative product portfolio, and efficient distribution network.

Food Inflation and Policy Changes Drive BUA Foods’ Growth

While the company’s expansion strategy and operational efficiency have played a major role in this stellar performance, Nigeria’s deepening food insecurity crisis and soaring inflation have significantly contributed, making the unprecedented growth entirely not surprising.

The country has been grappling with one of the worst food inflation rates in its history, hitting 39.84% as of December 2024, according to the National Bureau of Statistics (NBS). As food prices continue to skyrocket, food manufacturers and agricultural producers are seeing record earnings, making the sector one of the most lucrative industries in Nigeria today. BUA Foods, being a dominant force in the food production and distribution industry, has directly benefited from this economic reality.

Nigeria’s food crisis is fueled by a combination of supply chain disruptions, insecurity in farming regions, foreign exchange volatility, and policy-driven import bans. The government’s strict restrictions on food imports, aimed at boosting local production, have inadvertently created a protected market for local producers. This policy, while intended to promote self-sufficiency, has also led to higher food prices, as demand outstrips supply.

With limited competition from imported goods, local food manufacturers like BUA Foods have gained a significant advantage, enabling them to set prices that reflect the prevailing market conditions. This pricing power, combined with strong demand for staple foods, has allowed the company to dramatically increase its revenue and profitability.

With ongoing investments in new production facilities, enhanced logistics, and backward integration, BUA Foods is well-positioned for sustained growth.

An African proverb is clear – “no man, no matter how wealthy, can prepare enough food for his kinsmen, but if those kinsmen make food for him, he is largely finished”. I drop that as Trump goes after BRICS countries:

‘The United States is escalating tensions with the BRICS economic alliance, with President Donald Trump issuing a stern warning against the bloc’s efforts to create an alternative global currency. In a statement posted on Truth Social, Trump threatened 100% tariffs and restricted market access for BRICS nations if they continued their push to move away from the U.S. dollar in global trade. “The idea that the BRICS countries are trying to move away from the dollar, while we stand by and watch, is over,”‘

Sure, we can understand Trump’s position since he has not sanctioned countries in the same way Biden did. Because if you have a habit of sanctioning countries, you are simply telling them to go and get an alternate currency to the US dollars. With the US dollar as a political and economic weapon, most countries are looking for refuge, and that is why the idea of BRICs currency seems exciting. And they’re trying to cook for America!

If Trump updates the US Constitution that the US dollars will not be used as a weapon of sanctions, all the meetings on BRICS currency will fade! But where he does not do that, he should not expect the sanctioned Russia, Iraq, etc to stop existing as nations.

Yet, I am not sure the real issue is the BRICS currency. I think the biggest competitor against the US dollars is the stablecoin ecosystem. Mr. President should put more energy there because if the stablecoin adoption continues, the US Treasury may not even see anything to sanction because stablecoins have disintermediated the role of the US dollar! Sure – it will take years for that to happen at scale, well after Trump has left the Oval Office.

Again, Trump Threatens Trade War Against BRICS Nations Over De-Dollarization Push

Tax Revenues Reach Historic Highs as Non-Oil Contributions Dominate
The Federal Inland Revenue Service (FIRS) has announced that Nigeria’s Value Added Tax (VAT) collections surged to N6.72 trillion in 2024, marking a remarkable 84.62% year-on-year increase from the N3.64 trillion recorded in 2023.

This unprecedented rise highlights the growing role of non-oil revenue in Nigeria’s fiscal strategy, as the federal government aggressively broadens its tax base to reduce dependency on oil earnings. The figures were disclosed at the 2025 FIRS Management Retreat, where tax officials reviewed the agency’s revenue performance and outlined projections for the coming year.

The surge in VAT collection underlines not just improved tax administration and enforcement but also rising consumer spending on essential goods amid soaring inflation.

In addition to VAT, other tax categories recorded significant growth. Non-import VAT, which stood at N2.93 trillion in 2023, rose by 75.09% to N5.13 trillion in 2024. Import VAT more than doubled, increasing from N715 billion to N1.59 trillion, reflecting a 122.38% growth. The depreciation of the naira played a major role in this surge, as imported goods became more expensive, increasing the amount of VAT collected on them.

Company Income Tax (CIT) also saw a substantial rise, growing by 102.5% from N3.35 trillion in 2023 to N6.78 trillion in 2024. This increase was driven by inflationary pricing, which boosted nominal corporate earnings and, in turn, raised taxable income.

Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), and Upstream CIT recorded a 35.2% growth, increasing from N4.26 trillion to N5.76 trillion. However, this segment failed to meet internal revenue projections due to lower-than-expected crude oil production, which averaged 1.55 million barrels per day (mbpd) instead of the projected 1.78 mbpd.

Education Tax (EDT) posted the highest year-on-year percentage growth, surging by 127.8% from N719 billion in 2023 to N1.64 trillion in 2024. The government’s intensified efforts to enforce tax compliance among businesses contributed significantly to this increase. Overall, non-oil tax revenue rose by 97% compared to 2023, reflecting the government’s push to diversify revenue sources amid declining oil income.

Oil Revenue Falls Short Despite Gains in Other Sectors

Despite strong growth in tax revenues across the board, oil-related tax revenue fell short of expectations. The Petroleum Profit Tax, Hydrocarbon Tax, and Upstream CIT segment, projected to generate N7 trillion, only delivered N5.76 trillion, achieving 82.3% of its target. This shortfall was attributed to lower-than-expected crude oil production, hindered by ongoing challenges such as oil theft, underinvestment in production infrastructure, and OPEC-imposed production quotas.

To mitigate the impact of the shortfall, FIRS intensified its debt collection efforts, recovering outstanding tax liabilities from oil companies and other corporations. While these measures helped cushion the revenue gap, the underperformance in oil tax collections underscores Nigeria’s vulnerability to fluctuations in the global oil market and production challenges.

VAT and CIT Collections Surpass Projections

VAT and CIT collections exceeded initial projections, highlighting the growing role of domestic taxation in Nigeria’s revenue framework. Import VAT, initially projected at N1.1 trillion, significantly outperformed expectations, reaching N1.59 trillion and achieving 144.3% of its target. Non-import VAT also surpassed expectations, reaching N5.13 trillion instead of the projected N4.25 trillion, exceeding the target by 20.7%.

Company Income Tax collections followed a similar trend, outperforming projections by a wide margin. The tax, expected to generate N5.7 trillion, closed the year at N6.78 trillion, achieving 118.9% of its target. The increase in CIT collections reflects improved enforcement of tax compliance, as well as the impact of inflation on corporate revenues.

2025 Revenue Target Set at N25.2 Trillion Amid VAT Sharing Dispute

Following the strong revenue performance in 2024, FIRS has set an ambitious target of N25.2 trillion for 2025, representing a significant increase from the N21.6 trillion collected in 2024. However, this target comes at a time of intense debate over the sharing formula for VAT revenue, as state governments push for a larger share of the tax proceeds.

Under the current VAT Act, revenue is allocated as follows: 15% to the Federal Government, 50% to States and the Federal Capital Territory (FCT), and 35% to Local Governments. Additionally, 4% of VAT collections are allocated to FIRS as a collection fee, while 2% goes to the Nigeria Customs Service for import VAT collection.

The Nigeria Governors’ Forum (NGF) has endorsed a revised VAT-sharing formula that would allocate 50% of VAT revenue based on equality among states, 30% based on derivation (i.e., the amount generated by each state), and 20% based on population. The governors argue that this formula would ensure a more equitable distribution of resources, particularly for states that contribute significantly to VAT revenue. However, economic experts warn that such a revision could create disparities between wealthier and poorer states, potentially leading to new fiscal tensions.

While the federal government celebrates the record-breaking tax collections, many believe that higher VAT revenue means a greater tax burden on Nigerian consumers. With inflation worsening and the cost of living soaring, many households and businesses are feeling the strain of increased taxation.

The government maintains that expanding the tax base is necessary to reduce Nigeria’s reliance on borrowing, but there are concerns that aggressive tax policies could stifle economic growth and worsen poverty.

FIRS Chairman Zacch Adedeji has reassured Nigerians that the agency will continue to improve tax compliance while avoiding excessive tax increases. However, as Nigeria targets N25.2 trillion in tax revenue for 2025, the challenge will be to sustain revenue growth without exacerbating economic hardship.