Nigerian billionaire businessman and leading industrialist Abdul Samad Rabiu has received a N86.5-billion ($208 million) dividend from his stake in BUA Cement Plc as part of the cash rewards paid to the company’s shareholders on Thurs., July 21.
Much like Africa’s richest man Aliko Dangote, Rabiu is one of the few billionaires on the continent who receive more than $150 million per year in dividends from the companies that they helped found. Also like Dangote, he derives the majority of his net worth from his stake in his cement company.
The massive $208-million dividend, which was paid electronically into Rabiu’s bank account, is 32.5-percent higher than the N64.53 billion ($157.02 million) that he received last year.
This represents the majority of the N88.05-billion ($212 million) final dividend distribution approved by shareholders at the group’s annual general meeting on Thursday.
The billionaire is also on track to earn another N62.88 billion ($151.66 million) in dividends from his newly consolidated food business BUA Foods Plc, following a profit of N69.76 billion ($167.84 million) at the end of 2021.
While commenting on the performance of his cement business, Rabiu, the chairman of the board of BUA Cement, said the group’s performance in 2021 demonstrates its sound business model, value proposition, and the excellent team that responded to the challenges and opportunities faced in the year under review.
He also stated that, as the cement brand grows in the market, the group will continue to invest in the industry until Nigeria is self-sufficient and cement is readily available, accessible, and affordable for all Nigerians.
In response to questions about BUA Cement’s expansion plans, he reaffirmed that the group is committed to maintaining its excellent performance as a going concern, and that several capacity-building projects are in the works to increase the group’s installed production capacity.
He added that some of the company’s continuing projects will be completed by 2023, increasing its installed cement production capacity to 17 million metric tonnes per year and solidifying BUA Cement’s position as a leader in the Nigerian cement industry.
Despite operational disruptions, BUA Cement delivered an impressive financial performance at the end of 2021.
The cement tiger’s profit rose by 24.5 percent in 2021, from N72.3 billion ($174 million) at the end of 2020 to N90.08 billion ($216.7 billion).
This is the cement company’s highest profit since its founding in 2008.
The double-digit earnings growth can be attributed to a surge in cement demand fueled by renewed interest in real estate assets and increased government infrastructure spending.
