BUA Chairman Applauds CBN FX Reforms, Predicts Stronger Naira and Lower Commodity Prices
BUA Chairman Rabiu hails CBN forex reforms, says businesses no longer lobby for dollar access.
He forecasts stronger naira, reports major profit growth, and announces N2.05 dividend for shareholders.
Chairman of BUA Cement Plc, Dr Abdul Samad Rabiu, has praised recent foreign exchange reforms by the Central Bank of Nigeria (CBN), saying they have brought transparency to the market and removed the need for companies to lobby for forex.
Speaking in Abuja on Monday during a media briefing after the company’s 9th Annual General Meeting, Rabiu said the new system contrasts sharply with past practices that made businesses struggle to access foreign exchange.
“I was making a joke a few weeks ago that I’ve only seen the current CBN Governor maybe twice since his appointment. That’s because I don’t need him. Before now, I used to visit the CBN every two weeks to lobby for FX. That was the only way to survive,” he said.
Rabiu criticized the former system where official rates were significantly lower than black market rates, which, he said, created artificial scarcity and inequality.
“The rate was N500 or N600 officially, but nobody could get it. On the street, it was closer to N1,000. It was an artificial rate,” he added.
According to him, the unified market now ensures equal access for all players. “Now, the rate you get is what everyone else gets. You go to the bank, you get FX at the market rate.”
Rabiu predicted a further strengthening of the naira, estimating it could settle around N1,200 to the dollar in the coming months down from nearly N2,000 earlier this year. He said the stronger naira is already reducing prices of goods, including cement and food.
On cement prices, Rabiu noted that fluctuations in FX, high energy costs, and import expenses have driven recent increases. However, he said BUA has tried to keep prices stable despite the challenges.
Reviewing the company’s financials, Rabiu reported a significant revenue rise from N460 billion in 2023 to N877 billion in 2024 despite FX-related losses of N93.9 billion. Profit before tax rose by 48.2% to N99.63 billion, and return on capital increased to 15%, up from 10% in 2023. Earnings per share grew by 6.3%, reaching N2.18.
He attributed the improved performance to increased dispatch volumes, cost control, and better pricing strategies. “Cash generation grew significantly, enabling increased capital expenditure financing and supporting our strategic efforts to reduce exposure to foreign currency obligations,” he said.
Rabiu added that profit after tax in Q1 2025 already stood at N81 billion surpassing 2024’s full-year earnings. He projected profits could reach N250 billion by the end of 2025, thanks to efficiency, reduced FX losses, and higher output.
He confirmed that BUA has no plans for further expansion beyond its current 20 million metric tonnes capacity, after recently launching two new cement lines in Sokoto and Edo States.
Rabiu also announced a N2.05 dividend per share, representing a 94% payout ratio, to reward shareholders.
In his remarks, BUA Cement CEO Yusuf Binji described the company’s performance as resilient and growth-driven. He said a 700-tonnes-per-day LNG regasification plant was underway to reduce energy costs, which remain the company’s biggest expense.
Binji also revealed that BUA has renegotiated service contracts to favor local content, helping reduce FX exposure and operational expenses.
