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BUA Cement, led by Nigeria’s second-richest man Abdul Samad Rabiu, has commenced production at its state-of-the-art Sokoto cement plant Line 5. The multimillion-dollar expansion project, with a 3-million-metric-tonne capacity per annum, marks a significant milestone in the company’s strategic expansion plans.
The recent production commencement follows the recent reduction in ex-factory cement prices on Oct. 2, 2023. The move, aimed at leveraging the efficiency of the new cement production plants, lowered BUA Cement’s ex-factory prices to N3,500 ($4.55) per bag. This shift is part of the company’s commitment to providing quality cement at more affordable rates.
BUA Cement’s decisive move: Sokoto plant’s latest power play
Under Rabiu, BUA Cement has solidified its position as Nigeria’s second-largest cement producer, boasting a total installed capacity of 11 million metric tonnes per annum as of Dec. 31, 2022. Despite the growth, the company continues to trail behind Dangote Cement, which maintains a production capacity of 51.55 million tonnes annually across ten countries.
The Sokoto cement plant Line 5 — which commenced production today Mon., Dec. 18, 2023 — reflects BUA Cement’s commitment to its expansion plans, bringing the company’s installed capacity closer to the projected 17 million metric tonnes per annum. The company had announced plans for a price review in Q1 2024 upon the completion of ongoing projects.
From strength to strength: BUA Cement’s revenue skyrockets to $422 million
In the first nine months of 2023, BUA Cement, under the leadership of Rabiu, reported robust financial performance. The company witnessed a surge in revenue from N262.6 billion ($330.6 million) in the first nine months of 2022 to N335.86 billion ($422.9 million).
Simultaneously, the profit after tax increased from N74.01 billion ($93.2 million) to N76.06 billion ($95.7 million), solidifying its position not only as one of Nigeria’s leading cement makers but also as one of Africa’s prominent cement producers.
The new Sokoto cement plant Line 5 underscores the company’s commitment to meeting the growing demand for quality cement while maintaining a competitive edge in the market. With the expanded production capacity, BUA Cement is poised to play a more significant role in Nigeria’s construction and infrastructure development.
