Billionaire Abdul Samad Rabiu says BUA Cement prices will fall as naira stability eases costs

Abdul Samad Rabiu has a message for Nigerian builders frustrated by soaring cement costs: relief is coming. The billionaire chairman of BUA Cement told shareholders at the company's 10th annual general meeting in Abuja that prices will ease as production and logistics costs fall, and he pinned much of the recent pain on a weaker naira rather than profiteering.

Speaking on Thursday, Rabiu argued that recent economic reforms, especially the stabilization of the foreign exchange market, are already improving planning and trimming cost pressures for manufacturers. He blamed earlier price increases on currency depreciation, surging energy bills and higher transport expenses, noting that the industry remains heavily exposed to exchange rate swings because it relies on imported spare parts and energy.

"The good news is that things are getting better because of the stability," he said. "You see, the price of certain commodities is coming down, especially shipping prices." He added that every buyer now accesses foreign currency at the same rate, a transparency he said the reforms restored after years of distortion.

The optimism arrived alongside a banner set of results. BUA Cement lifted 2025 revenue 34.5% to N1.2 trillion ($800 million), while profit after tax surged to N356 billion ($237 million) from N73.9 billion ($49 million) a year earlier. Shareholders approved a total dividend payout of about N338.6 billion ($226 million), a sharp jump that signals management's confidence.

Meanwhile, the company is expanding hard. Managing Director Yusuf Binji said a new line in Ososo, Edo State, is nearing completion and another in Sokoto has been announced, together adding roughly six million metric tons and lifting installed capacity toward 23 million metric tons a year. Binji said strong demand from road projects, including the Lagos-Calabar Coastal Highway, is driving the push, and BUA has deployed 500 specialized trucks while weighing 500 more.

Rabiu said BUA's local sourcing and energy investments would help bring prices down, and the firm has trimmed exports to prioritize domestic supply. Therefore, the expansion could sharpen competition with Dangote Cement and Lafarge Africa, especially in northern and midwestern markets near the new plants.

Still, the relief depends on conditions holding. Nigerians currently pay as much as N12,500 to N13,000 ($8.30 to $8.70) per 50-kilogram bag, and analysts caution that any fresh naira weakness or energy spike could erode the savings before they reach the market.