Cement Firm Owned By Nigeria's Third-richest Man Posts 49.3 Million Profit In 2024

BUA Cement Plc, a leading cement manufacturer led by Nigerias third-richest man Abdul Samad Rabiu, delivered a resilient financial performance in 2024, overcoming economic headwinds to post higher revenue and profit. The cement manufacturer recorded a 6.4 percent rise in profit despite surging finance costs and operational expenses.

According to its recently published annual report , net income increased to N73.91 billion 49.3 million in 2024 from N69.45 billion 46.3 million in the previous year. This growth came despite a sharp rise in finance costs, which soared to N60.04 billion 40 million from N19.94 billion 13.3 million, as well as higher administrative expenses, foreign exchange losses, and distribution costs.

The companys profitability was fueled by a strong top-line performance, with revenue surging 90.3 percent to N876.5 billion 584.6 million from N460 billion 306.8 million in 2023. This increase was primarily driven by higher sales of bagged cement in Nigeria, its core market. However, sales outside of Nigeria plunged from N3.92 billion 2.61 million to N631.64 million 425,000, reflecting weaker demand outside Nigeria.

BUA Cement, Nigerias second-largest cement producer, operates as a key subsidiary of BUA Group, the conglomerate founded by Abdul Samad Rabiu, the countrys third-richest man. The company has an annual production capacity of 11 million tonnes, reinforcing its dominant market position and strategic role in West Africas construction industry.

Under Rabiu, who holds a 95.78 percent stake in the company, BUA Cements retained earnings rose from N169.52 billion 113 million in 2023 to N175.7 billion 117.2 million in 2024. Its total assets also expanded from N1.215 trillion 810.4 million to N1.57 trillion 1.04 billion, while total equity inched up from N385.22 billion 256.9 million to N388.55 billion 259.2 million.