Abdul Samad Rabiu, one of Nigeria’s richest billionaires and leading industrialists, is set to receive a dividend of N86.5 billion ($208 million) from his stake in BUA Cement Plc after the cement company posted its highest-ever profit at the end of 2021.
BUA Cement, Nigeria’s second-largest cement producer, operates with a combined installed capacity of 8 million tonnes per annum under the leadership of Rabiu, who owns 92.2 percent of the company.
The $208-million dividend that Rabiu is set to receive from his stake in the fast-growing cement company is part of a cash distribution approved by the board of directors. The dividend payout will come from the group’s retained earnings of approximately N181.9 billion ($437.5 million).
According to the firm’s corporate announcement, Rabiu’s multimillion-dollar dividend, which will be disbursed alongside other shareholders’ payout, will be paid electronically into his account on July 21, representing a 32.5 percent increase over the $157-million dividend he received last year.
The 32.5-percent increase in the dividend payout can be attributed to BUA Cement’s impressive financial performance at the end of 2021, despite the impact of the COVID-19 pandemic on its operations in 2021.
The cement tiger’s profit increased by 24.5 percent in 2021, from N72.3 billion ($174 million) at the end of 2020 to N90.08 billion ($216.7 billion) in 2021: This is the cement company’s highest profit since its founding in 2008.
The double-digit earnings growth can be linked to a surge in cement demand, which was driven by renewed interest in real estate assets and an increase in government spending on infrastructure.
As a result of the strong performance, the Board of Directors approved a dividend of N2.6 ($0.0063) per share to its shareholders, an increase from the N2.067 ($0.0050) dividend paid last year.