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Nigeria’s leading cement producer, BUA Cement Plc, led by Africa’s sixth-richest man Abdul Samad Rabiu, was selected by the government to finance the rehabilitation of the Lokoja-Benin road under a tax credit scheme.
The Federal Executive Council (FEC) approved the dualization of the Okpella section of the road at a cost of N120 billion ($78.9 million), with BUA Cement tapped to fund the project. The financing will be facilitated through Nigeria’s tax credit scheme, designed to attract private sector participation in infrastructure development.
Road rebuild with BUA Cement funding
The announcement followed a two-day FEC meeting. Bayo Onanuga, the Special Adviser to the President on Information and Strategy, said the council approved contracts for the Okpella section, the Lokoja-Benin dualized Auchi Section-Uromi Link Road, and the Lokoja-Benin Ekpoma Section.
Highlighting the urgency, Onanuga referenced a recent fuel tanker accident on the dilapidated road. “BUA Cement will finance the reconstruction at a cost of N120 billion ($78.9 million) under the tax credit scheme,” he said on social media.
This initiative falls under the Road Infrastructure Development and Refurbishment Tax Credit Scheme established in 2019. The approach aims to ease the government’s financial burden while fostering public-private partnerships.
BUA Cement: Key player in infrastructure push
BUA Cement, a subsidiary of Rabiu’s BUA Group, is Nigeria’s second-largest cement producer. Rabiu holds a controlling 96 percent stake. BUA Cement plays a pivotal role within BUA Group, a prominent African manufacturing and industrial conglomerate with an installed capacity of 11 million tonnes per year.
While BUA Cement’s first-quarter 2024 results showed impressive revenue growth of 51.51 percent to N161.13 billion ($118.85 million) year-on-year, the cement company also grappled with a significant decline in its profit due to rising costs and currency devaluation.
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