The Chairman of BUA Cement Plc, Dr Abdul Samad Rabiu, says the Central Bank of Nigeria’s (CBN) ongoing foreign exchange reforms have effectively eliminated the era of lobbying for dollars—a practice he admitted was once routine for Nigerian businesses under the previous FX regime.
Rabiu, who spoke in Abuja on Monday during a media briefing following the company’s 9th Annual General Meeting, said the new FX framework has brought transparency and fairness to currency access, allowing businesses to plan with more confidence and less political maneuvering.
“I was making a joke a few weeks ago that 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.”
The billionaire businessman described the previous system as a distortion that created artificial scarcity and privilege. “The rate was N500 or N600 officially, but nobody could get it. On the street, it was closer to N1,000. It was an artificial rate,” he said.
In contrast, Rabiu praised the new FX system for unifying the market and closing the gap between the official and parallel rates.
“Now, the rate you get is what everyone else gets. You go to the bank, you get FX at the market rate,” he said, adding that the current policy environment fosters a level playing field for all businesses.
Naira Could Strengthen Further
Rabiu expressed optimism that the naira would continue its upward trajectory, predicting that the exchange rate could appreciate to around N1,200/$ in the coming months, down from highs of nearly N2,000/$ earlier in the year. He linked this optimism to increased transparency in FX flows and the market-driven approach adopted by the CBN.
The BUA chairman said this trend is already translating into lower commodity prices.
“We are beginning to see a decline in the cost of goods—cement prices are coming down, food prices too,” he noted.
FX Reforms Offset by Soaring Input Costs
However, Rabiu acknowledged that cement prices had earlier risen sharply due to cost pressures tied to FX volatility, imported machinery, and high energy costs.
“Despite these challenges, we’ve tried to keep our prices stable and fair. But energy and imported components really drove production costs up,” he explained.
BUA Cement’s Financials Defy Volatility
Despite macroeconomic headwinds, BUA Cement posted a remarkable 90.6 per cent revenue growth in 2024, reaching N877 billion—up from N460 billion in 2023. The company, however, reported FX-related losses of N93.9 billion in the same period, underscoring the lingering impact of currency depreciation earlier in the year.
Profit before tax rose 48.2 per cent to N99.63 billion, while profit after tax for the first quarter of 2025 alone stood at N81 billion—more than the entire earnings for the full year 2024. Rabiu projected that full-year 2025 earnings could hit N250 billion if current performance trends continue, buoyed by increased output, better FX conditions, and operational efficiencies.
Return on average capital employed rose to 15 per cent in 2024 from 10 per cent the previous year, while earnings per share grew to N2.18 from N2.05, representing a 6.3 per cent increase.
“This performance was driven by a combination of increased dispatch volumes and prudent pricing strategies, even as the Company absorbed rising input costs,” Rabiu said. He added that cash generation had also improved significantly, allowing BUA Cement to pay down import finance facilities and reduce its exposure to dollar-denominated obligations.
Having recently commissioned two new cement lines in Sokoto and Edo states, Rabiu disclosed that the company has reached its production target of 20 million metric tonnes per year and will not be pursuing further expansion in the short term.
“Our focus now is on consolidating operations, cutting costs, and improving efficiency,” he said.
BUA Bets on Local Content and LNG to Tame Energy Costs
Managing Director and CEO of BUA Cement, Yusuf Binji, also spoke at the AGM and emphasized that energy remains the company’s largest cost driver. He revealed that BUA is investing in a 700-tonnes-per-day liquefied natural gas (LNG) regasification plant to stabilize energy supply and cut costs.
Binji said the company had renegotiated existing service contracts to increase local content participation, which has helped in reducing FX exposure and improving cost efficiency. “We are focused on resilience, strategic agility, and delivering value in a volatile macroeconomic environment,” he said.
Rabiu reaffirmed the company’s commitment to rewarding shareholders, announcing a N2.05 dividend per share—a 94 per cent payout ratio.
“We remain committed to shareholder value and long-term sustainability,” he said.
The financial turnaround, strategic investments, and FX reforms have all contributed to a more stable outlook for BUA Cement in 2025, reinforcing the group’s position as one of Nigeria’s most formidable industrial players.
