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Abdul Samad Rabiu, the chairman of BUA Group, a rapidly expanding industrial and manufacturing conglomerate in Africa, has reached a new milestone, as his net worth soared to an impressive $7 billion. This solidifies his position among the wealthiest individuals on the African continent.
According to Forbes, Rabiu, presently ranked as Nigeria’s second-richest individual and the fifth-richest in Africa, has seen his net worth increase by $500 million over the past month, from $6.5 billion on Sept. 11 to $7 billion.
It’s worth noting, however, that Bloomberg estimates Rabiu’s net worth slightly lower, at $5.91 billion, taking into account approximately $2.98 billion in miscellaneous liabilities.
The primary driver behind this surge in Rabiu’s wealth is the performance of his 96.29-percent stake in BUA Cement, the flagship company of the BUA Group. Shares in the leading cement manufacturing company have experienced a significant increase, rising from N96.15 ($0.125) on September 11 to N105.8 ($0.137) at the time of this report.
This notable increase in BUA Cement’s shares closely follows the company’s announcement of a significant reduction in ex-factory cement prices. This strategic pricing shift is anticipated to have far-reaching effects on the competitive landscape within the industry, benefiting consumers and potentially reshaping market dynamics.
The price cut brings the ex-factory cement price for a bag of BUA Cement down to N3,500 ($4.55), underscoring the company’s commitment to offering competitive pricing. While this move may impact the company’s revenue per tonne, it is expected to bolster BUA Cement’s market share.
BUA Cement is positioned to capture a more substantial share of the cement market by leveraging its expanded production capacity. This increased market presence could result in a significant surge in the group’s revenue and earnings. Market sentiment around these prospects has contributed to the recent surge in BUA Cement’s share price on the Nigerian Exchange.
Furthermore, BUA Cement disclosed that, upon the completion of its ongoing plant construction projects, which are set to increase production volumes to 17 million metric tonnes per annum, the company would conduct another pricing review in line with its earlier announcements. This review is expected to take place in the first quarter of 2024.
