BUA to expand production after N504bn dividend

BUA Foods Plc is set to significantly increase its local food production and enhance affordability of staple foods, following shareholder approval of a substantial N504 billion dividend. The company's next growth phase includes expanding flour milling and pasta production, introducing a noodles business, finalizing edible oils operations, and establishing an integrated feed mill. These initiatives are designed to position BUA Foods as Nigeria's largest indigenous food manufacturing company by next year.

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By next year, when our current projects are completed, BUA will become the largest player in our sector in Nigeria. We are not pursuing growth simply for the sake of becoming bigger. We are pursuing growth because scale matters in an industry like ours.

Abdul Samad Rabiu, Chairman of BUA Foods Plc, stated at the company's fifth Annual General Meeting in Abuja that the expansion is driven by a strategic imperative to strengthen Nigeria's food manufacturing sector, rather than merely increasing the company's size. "By next year, when our current projects are completed, BUA will become the largest player in our sector in Nigeria. We are not pursuing growth simply for the sake of becoming bigger. We are pursuing growth because scale matters in an industry like ours," Rabiu explained.

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While we are proud of our financial performance, we recognise that we operate in an industry that plays an important role in the development of our country. We therefore have a responsibility not only to create value for shareholders, but also to help build a stronger, more competitive industry that contributes to Nigeria’s long-term growth.

Shareholders endorsed all resolutions, including the N504 billion dividend payment and the audited financial statements for the year ending December 31, 2025. Rabiu highlighted BUA Foods' commitment beyond shareholder returns, emphasizing its role in supporting Nigeria's industrial development. "While we are proud of our financial performance, we recognise that we operate in an industry that plays an important role in the development of our country. We therefore have a responsibility not only to create value for shareholders, but also to help build a stronger, more competitive industry that contributes to Nigeria’s long-term growth," he said.

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In any concentrated market, the strongest force for efficiency, innovation and value creation is competition. The more competitive the market becomes, the stronger the industry becomes and the greater the benefits for consumers, investors and the wider economy.

Rabiu pointed out that Nigeria's food manufacturing industry is highly concentrated, with four companies controlling approximately 90% of the market, and BUA is the only indigenous Nigerian company among these major players. He stressed that increased competition is the strongest driver of efficiency, innovation, and value creation in such a market. BUA's long-term objective is to achieve sufficient scale to compete effectively with all major players, thereby fostering greater indigenous participation in Nigeria's industrial sector and ultimately benefiting consumers and the national economy.

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Our objective is straightforward: to build sufficient scale to compete effectively with every player in the market. We believe Nigeria benefits when there are strong indigenous companies capable of competing at the highest level, investing for the long term and challenging established market positions.