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BUA Cement Plc declared a dividend payout of N70 billion ($170 million) at N2.067k ($0.0050) per ordinary share for stakeholders during its annual general meeting on July 8 for the period ending Dec. 31, 2020.
Shareholders applauded the move.
BUA Cement is Nigeria’s second-largest cement producer and one of Africa’s biggest cement companies. The declaration follows a strong year for BUA Cement.
The company recorded a turnover of N204 billion ($495.76 million) and declared profits after tax of N72.3billion ($175.70 million) in the year under review.
During the meeting, BUA Cement Chairman Abdul Samad Rabiu praised management, staff and consumers for ensuring that the company remained a leader in Nigeria.
He also called for more investments in the cement industry as national production levels in the sector do not suffice to meet current demand. Demand is increasing at more than 3 million metric tons per year, Rabiu said. He encouraged investors to open more cement plants throughout the country.
Rabiu, who was recently made the inaugural president of the France-Nigeria Business Council, will earn a dividend of N64.53 billion ($157.02 million) from BUA Cement from its 2020 profits. He holds a 92-percent stake in the company, which he founded in 1988.
Meanwhile, BUA Cement Managing Director Yusuf Binji said the cement maker is committed to remaining a value-driven-oriented company that prioritizes excellence and product quality.
“Our value proposition, in terms of product and service support offerings, has positioned BUA Cement as a market leader,” he said. “In addition, we continue to prioritize innovation and continuous improvement, thereby ensuring the continued ‘fit’ of our products to ever-changing customer demands and needs.”
BUA Cement is presently constructing a 3-million-metric-tonne cement factory in Sokoto. It is expected to come on stream by the end of 2021.
“We are also investing in the latest plant designs that drive efficiency and translate into value addition to our customers through the cost savings derived,” Binji said.
BUA Cement is the largest cement producer in Nigeria’s northwestern, southern and southeastern regions. It is the second most capitalized manufacturing company on the Nigerian Stock Exchange, behind Dangote Cement.
