Home » Nigerian billionaire’s cement firm commences operations at multimillion-dollar plant line

Nigerian billionaire’s cement firm commences operations at multimillion-dollar plant line

BUA Cement's decisive move: Sokoto plant's latest power play

by Omokolade Ajayi
Abdul Samad Rabiu

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.

You may also like


The world’s premier source of news on Africa’s billionaires and UHNWIs.


Get the daily email to stay informed about African billionaires and UHNWIs. Get informed and entertained, for free.

Latest News

@2024 – Billionaires.Africa. All Rights Reserved.