How FX reforms stopped lobbying for dollars – BUA chairman

Chairman of BUA Cement Plc, Dr. Abdul Samad Rabiu, has praised recent foreign exchange (FX) reforms by the Central Bank of Nigeria (CBN), stating they have brought greater transparency to the market and eliminated the need for businesses to “lobby” for foreign currency.

Speaking at a media briefing in Abuja following the company’s 9th Annual General Meeting on Monday, Rabiu highlighted the contrast between the current FX regime and the opaque practices of the past.

“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,” Rabiu said.
“Before now, I used to visit the CBN every two weeks to lobby for FX. That was the only way to survive.”

He criticised the former dual exchange rate system, noting that while the official rate hovered around ₦500–₦600, most businesses were forced to source dollars at nearly ₦1,000 on the parallel market.

“It was an artificial rate that distorted the market. Now, you go to the bank and get FX at a market-driven rate—what you get is what everyone else gets,” he added.

Rabiu expressed optimism about the naira’s future, projecting that the exchange rate could strengthen to around ₦1,200/$ in the coming months—down from earlier peaks of ₦2,000/$.

Cement Prices and Cost Challenges

On rising cement prices, Rabiu cited high input costs, including energy expenses, foreign exchange volatility, and equipment imports as major drivers. Despite this, he said BUA Cement had made efforts to maintain price stability.

Strong Financial Performance in 2024 and 2025 Outlook

Despite macroeconomic headwinds, BUA Cement posted impressive results in 2024:

• Revenue: ₦877 billion (up from ₦460 billion in 2023)

• Profit before tax: ₦99.63 billion (up 48.2%)

• FX losses: ₦93.9 billion

• Earnings per share: ₦2.18 (6.3% increase)

• Return on average capital employed: 15% (from 10%)

Rabiu highlighted that performance was driven by a mix of increased dispatch volumes and strategic pricing, despite absorbing higher production costs.

He also revealed that profit after tax in Q1 2025 reached ₦81 billion, already surpassing the company’s full-year 2024 earnings, and projected that 2025 earnings could hit ₦250 billion, supported by:

• Operational efficiency

• Reduced FX losses

• Increased production capacity

Strategic Investments and Cost Optimisation

Rabiu confirmed that BUA Cement will not expand beyond its current 20 million metric tonnes of installed capacity in the short term, following the recent commissioning of new cement lines in Sokoto and Edo States.

On shareholder returns, he reaffirmed the company’s commitment to value creation, announcing a ₦2.05 dividend per share, representing a 94% payout ratio.

Energy and Local Content Initiatives

BUA Cement CEO, Yusuf Binji, described the company’s performance as a reflection of resilience, agility, and strategic focus. He said the company was tackling its biggest cost driver—energy—by building a 700-tonnes-per-day LNG regasification plant, aimed at reducing costs and guaranteeing supply.

Binji added that BUA Cement had renegotiated several service contracts to favour local content, helping to reduce FX exposure and further bring down operational expenses.

Conclusion

With solid fundamentals, strategic cost management, and a favorable FX regime, BUA Cement is positioned for continued growth, even amid macroeconomic uncertainties. The company’s performance signals strong investor confidence and sets the tone for further consolidation in Nigeria’s cement industry.