BUA Foods Unveils Expansion Plans to Boost Local Food Production
BUA Foods Plc has announced an ambitious expansion initiative designed to enhance local food production, improve the availability of staple items, and strengthen food security across Nigeria. This announcement was made during the company’s fifth annual general meeting (AGM) held in Abuja, where shareholders approved a record N504 billion dividend for the 2025 financial year.
During the meeting, shareholders also ratified the audited financial statements, supported the re-election of outgoing directors, and agreed on various statutory resolutions. The approved dividend, amounting to N28 per common share, comes on the heels of a remarkable financial performance this year.
Abdulsamad Rabiu, chairman of BUA Foods, outlined plans to significantly expand the company’s flour milling and pasta production capabilities, establish a noodle manufacturing unit, finalize the edible oil business, and develop an integrated feed mill. He emphasized that these projects are geared toward positioning BUA Foods as Nigeria’s largest indigenous food manufacturing entity by next year.
Rabiu clarified that the focus on growth is not merely to increase scale but to improve efficiency within the industry’s competitive landscape. He articulated that the expansion strategy aims to strengthen Nigeria’s manufacturing sector, delivering substantial value to both consumers and shareholders. Recognizing the pivotal role of the food industry in national development, Rabiu asserted the company’s responsibility to create shareholder value while contributing to a stronger, more competitive industry in Nigeria.
Addressing Competition in the Food Manufacturing Sector
Rabiu pointed out the high concentration within Nigeria’s food manufacturing industry, where a small number of companies dominate the market. He argued that fostering increased competition among local manufacturers would drive efficiency and innovation, ultimately benefiting consumers through superior products and pricing.
He added, “Our goal is straightforward: build enough scale to effectively compete with all market players.” He expressed that the presence of robust indigenous companies is essential for long-term investment and competitive market positioning.
BUA Foods highlighted that the expansion plans will significantly bolster local production capacity, diversify consumer options, enhance the supply chain, and reduce reliance on imported food products. This proactive approach aligns with the company’s commitment to addressing food affordability amidst economic challenges.
Strategies to Maintain Affordability Despite Economic Pressures
Despite the pressures arising from inflation, fluctuating exchange rates, and rising production costs, BUA Foods remains committed to keeping food prices affordable. Instead of relying primarily on price increases, the company is concentrating on operational efficiency, local sourcing, diversifying energy inputs, streamlining procurement processes, and utilizing economies of scale to mitigate cost pressures.
While recognizing recent economic reforms that have stabilized currency fluctuations and enhanced business predictability, BUA Foods acknowledged the ongoing disruptions to global supply chains that continue to affect input costs. The company aims to double its overall production capacity for wheat-based products in the next 12 to 24 months while simultaneously expanding into the noodle and edible oil sectors to meet increasing consumer demands.
Call for Collaborative Agricultural Investment
In a post-meeting address, Mr. Kabiru Rabiu, Non-Executive Director of BUA Foods, urged a stronger partnership between government and private sectors to bolster agricultural productivity and fortify food security in Nigeria. He called for initiatives that make essential agricultural inputs, like fertilizers and herbicides, more affordable for farmers.
Mr. Rabiu highlighted the issue of insecurity as a major obstacle to agricultural production but acknowledged the government’s ongoing efforts to combat this challenge. He also advocated for significant investment in irrigation infrastructure to facilitate year-round agriculture and lessen dependency on seasonal rainfall.
Nigeria has faced sustained food inflation over the past two years, driven by insecurity in rural areas, high transportation and energy costs, currency instability, and climate-induced agricultural disruptions. In response, both the federal government and prominent food manufacturers have begun implementing measures to bolster domestic production, enhance local value chains, and lessen reliance on food imports.
BUA Foods has positioned itself as one of Nigeria’s leading food processing companies, with diversified operations spanning refined sugar, flour milling, and pasta production. The company recently reported a 16% year-on-year increase in sales for the 2025 fiscal year, amounting to NOK 1.77 trillion, alongside a striking 95% surge in profit after tax to NOK 518.4 billion. This growth reflects robust operational results and escalating product demand within the Nigerian market.
