BUA Cement shareholders approve ₦338.64bn dividend payout

By Damilare Adeleye

Shareholders of BUA Cement Plc have approved a final dividend payout of ₦338.64 billion for the 2025 financial year, as the company projected that cement prices would moderate once production, energy, and logistics costs begin to ease.

The approved dividend of ₦10 per ordinary share will be paid to shareholders whose names appeared on the company’s register at the close of business on May 8, 2026.

Speaking at the company’s 10th Annual General Meeting held in Abuja on Thursday, the Chairman, Abdul Samad Rabiu, attributed the persistent rise in cement prices largely to foreign exchange volatility, escalating energy costs, and transportation expenses, rather than profiteering by manufacturers.

Rabiu said recent economic reforms, especially the stabilization of the foreign exchange market, were beginning to ease operational pressures on manufacturers and improve long-term business planning.

According to him, the cement industry remains highly vulnerable to exchange rate fluctuations because of its dependence on imported spare parts, energy inputs, and other production materials.

“The good news is that things are getting better because of the stability. You see, the price of certain commodities is coming down, especially shipping prices,” Rabiu said.

He noted that the recent reforms in the foreign exchange market, though initially painful, had introduced greater transparency and eliminated previous distortions that made access to foreign currency difficult for many businesses.

“Today, whatever rate I get, it’s the same rate anybody gets,” he stated.

Rabiu added that the relative stability of the naira in recent months had enabled manufacturers to project and plan operations over a six- to nine-month period with greater certainty.

He also maintained that cement produced in Nigeria remained competitively priced compared to products sold in several neighboring countries where Nigerian manufacturers export.
The Chairman said the company would continue to focus on operational efficiency through investments in energy infrastructure, logistics, and local production initiatives aimed at reducing costs over time.

He stated that the firm’s long-term growth strategy aligned with Nigeria’s industrialization agenda through capacity expansion, market diversification, and efficiency-driven operations.

Rabiu disclosed that the company recorded revenue of ₦1.2 trillion in 2025, compared to ₦876.5 billion in 2024. Profit before tax rose sharply by 367 percent to ₦465.3 billion from ₦99.6 billion, while profit after tax increased by 381.7 percent to ₦356 billion from the ₦73.9 billion recorded in the previous year.

He said the board remained optimistic about Nigeria’s infrastructure outlook and the company’s capacity to sustain growth while delivering long-term value to shareholders.

Providing further details on the company’s pricing structure during a question-and-answer session, the Managing Director and Chief Executive Officer of BUA Cement Plc, Yusuf Binji, said energy accounts for roughly 60 percent of cement production costs, exposing the industry to exchange rate and energy price shocks.

“As you know, the price of cement, rightly or wrongly, is a consequence of input costs,” Binji said.

He revealed that before the naira devaluation, the company spent about ₦4 billion monthly on natural gas for one of its plants in Edo State, but the cost later surged to about ₦16 billion monthly as exchange rate pressures intensified.

“We were paying close to about ₦4 billion for natural gas every month. At a point, it went up to ₦16 billion a month. It became very difficult to absorb all these costs,” he said.

Binji also blamed rising diesel prices on renewed tensions in the Middle East, noting that the cost of diesel supplied to the company’s factories jumped from about ₦930 per liter in early March to ₦1,850 per liter within two months.

According to him, the increase significantly raised distribution costs because the company delivers cement nationwide using diesel-powered trucks.

“If you consider that we have to deliver cement to our customers using our own trucks that are using diesel, even the price we are talking about, half of that price of a bag of cement is actually because of transportation,” he stated.

The BUA Cement boss dismissed claims that cement was selling between ₦13,000 and ₦15,000 per bag nationwide, insisting that prevailing prices in several markets were considerably lower.

“I have the prices from the northern region, and yesterday it was ₦11,100 a bag. So it is nowhere near the ₦13,000 or ₦15,000 a bag that was quoted,” he said.

Binji assured consumers that the company would continue adjusting prices in response to changes in production costs and broader economic conditions.

“As we have favorable economic conditions in Nigeria, especially costs that are related to our input costs, we will adjust accordingly. Whichever way it swings, we will try to make sure that we give prices that are fair and decent to Nigerians,” he said.

On expansion plans, Binji disclosed that the company was pushing ahead with major projects despite economic and security challenges. He said a new production line in Ososo, Edo State, was nearing completion, while another line had already been planned for Sokoto State.

According to him, the projects would add about six million tonnes annually to the company’s output and raise total installed production capacity to 23 million tonnes per annum by the end of next year.

“We are going to add about six million tonnes per annum to our capacity. That is going to bring us up to 23 million tonnes per annum,” Binji said.

He further noted that cement demand remained strong due to ongoing infrastructure and road construction projects across the country. Binji disclosed that the company had acquired 500 specialized trucks for bulk cement distribution to large-scale construction projects, with all the vehicles currently deployed.

“We are even thinking of buying another 500 more,” he said, citing rising demand from projects such as the Lagos-Calabar Coastal Highway and other major road developments nationwide.

He added that the company had scaled down exports temporarily to prioritize local supply amid growing domestic demand driven by infrastructure investments.

“Our major aim is to be able to deliver cement everywhere in Nigeria at affordable prices, and that is what we will continue to do,” he added.