Chairman of BUA Cement Plc, Dr. Abdul Samad Rabiu, has credited the Central Bank of Nigeria’s (CBN) recent foreign exchange reforms with eliminating the need for companies to lobby for access to forex.
Rabiu made the remarks in Abuja on Monday during a media briefing following the 9th Annual General Meeting of BUA Cement Plc. He described the current FX system as more transparent and market-driven, in contrast to past practices which, according to him, created artificial scarcity and forced companies to rely on connections.
“I joked recently that I’ve only seen the current CBN Governor maybe twice since his appointment—and that’s because I don’t need him. In the past, I used to go to the CBN every two weeks just to lobby for FX. That was the only way to survive,” Rabiu said.
He criticised the former FX regime, noting that while the official rate was pegged at around ₦500–₦600 per dollar, most businesses had no access to it. “The real rate on the street was close to ₦1,000. It was an artificial rate,” he added.
Rabiu praised the reforms for unifying the exchange market, saying, “Now, everyone gets FX at the same market rate through the banks. It's fair and open.”
He projected a continued strengthening of the naira, expressing optimism that the exchange rate could settle at around ₦1,200/$ in the coming months—significantly down from nearly ₦2,000 earlier in the year. According to him, this appreciation is already leading to reductions in the prices of goods, including food and cement.
On the issue of cement pricing, Rabiu acknowledged the impact of FX volatility, rising energy costs, and imported machinery on production costs. Despite these challenges, he said BUA Cement had made efforts to keep prices stable.
Presenting the company’s financial performance, Rabiu revealed that BUA Cement's revenue rose to ₦877 billion in 2024 from ₦460 billion in 2023, despite incurring FX losses of ₦93.9 billion. Profit before tax grew by 48.2% to ₦99.63 billion, while return on average capital employed increased from 10% to 15%.
Earnings per share also rose from ₦2.05 in 2023 to ₦2.18 in 2024, a 6.3% improvement.
“This performance was driven by increased dispatch volumes and disciplined pricing, even as we absorbed higher input costs,” Rabiu said. “We also significantly improved cash generation, which allowed for more capital expenditure and helped reduce foreign currency liabilities.”
He added that profit after tax for Q1 2025 stood at ₦81 billion—already surpassing full-year 2024 earnings. He projected that 2025 profits could reach ₦250 billion, driven by greater operational efficiency, reduced FX losses, and expanded production capacity.
Rabiu confirmed that BUA Cement had no immediate plans to increase its current 20 million metric tonnes capacity, having recently commissioned two new production lines in Sokoto and Edo States.
The company also announced a dividend of ₦2.05 per share, representing a 94% payout ratio to shareholders.
Speaking at the event, Managing Director and CEO of BUA Cement, Yusuf Binji, lauded the company’s resilience and financial strength in a challenging operating environment. He said efforts were underway to tackle energy costs—the largest component of production—by building a 700-tonne-per-day LNG regasification plant to ensure consistent supply and reduce costs.
Binji also disclosed that BUA had renegotiated several service contracts to favour local content, reducing FX exposure and driving down operational expenses.
ADEOLA KUNLE
