BUA Cement Restates Commitment To Edo’s Economic Growth

BUA Cement Plc has reiterated its commitment to the development of its host communities in Edo State and also contribute to the state ‘s economic growth.

In 2008, BUA Group, under the leadership of Abdul Samad Rabiu, acquired the struggling Edo Cement Company during the federal government-led divestment and privatisation exercise.

The Edo Cement plant was barely functional, with antiquated equipment and limited output. This has turned to growth, resilience, and an enduring partnership between BUA Cement and the resilient people of Edo State.

BUA Cement in a statement sent to LEADERSHIP said “by 2015, after investing over $1 billion, the first line of the Obu Cement Plant was operational, and it quickly became one of Africa’s most advanced cement facilities.

“Since then, the company’s financial fortunes have mirrored its operational growth. In 2019, BUA Cement consolidated its operations by merging its subsidiaries, including the Cement Company of Northern Nigeria (CCNN) and Obu Cement Company.

“The merger streamlined operations and positioned BUA Cement as Nigeria’s second-largest cement producer, with a market share rivalling industry leader Dangote Cement.”

According to the Company, the next milestone came in January 2020 when BUA Cement was listed on the Nigerian Exchange Group (NGX). With an initial market capitalisation of N1.18 trillion, it instantly became one of the most valuable companies on the exchange. The listing unlocked access to capital markets, enabling BUA Cement to fund expansions and further strengthen its balance sheet.

“Today, BUA Cement’s financial performance is nothing short of stellar. Despite challenges in Nigeria’s broader economic landscape, the company has consistently delivered strong revenue growth and profitability.

“In the most recent fiscal year, BUA Cement reported revenues exceeding N300 billion, driven by increased production capacity and robust demand for cement in Nigeria’s booming construction sector.”

The Company added that “while BUA Cement’s financial success is impressive, its contributions to Edo State’s economy go far beyond corporate earnings. The company is one of the state’s largest taxpayers, significantly contributing to Edo’s internally generated revenue (IGR).”

Meanwhile BUA Cement said “despite its success, BUA Cement’s journey in Edo State has not been without challenges. Disputes over ownership, royalties, and mining leases led to legal battles that threatened to overshadow the company’s contributions.

“These disputes culminated in the 2019 Terms of Settlement, a landmark agreement that resolved all outstanding issues and paved the way for collaboration.

“Under the settlement, BUA Cement agreed to pay N5 billion in total, including an upfront payment of N2 billion and six monthly instalments of N500 million. The company also purchased the remaining shares in Edo Cement from minority stakeholders, consolidating its ownership.”

A senior government official withheld added that “this settlement was not just about resolving disputes. It was about setting the stage for growth for BUA, Edo State, and our people.”

The Company said BUA Cement’s impact goes far beyond the balance sheet, saying “for the people of Okpella and Edo State, it has meant jobs, empowerment, and a sense of belonging. Currently, over 2,000 people are directly employed by the company, with thousands more benefiting indirectly.”

It also said “BUA’s Corporate Social Responsibility (CSR) efforts have also transformed the community. Roads that were once impassable now connect villages and markets. Schools have been renovated, scholarships awarded, and health centers established. Clean water, once a luxury, now flows in homes across Okpella. Additionally, BUA Cement has initiated programs to support local entrepreneurs, promote education, and improve healthcare facilities in the region.”

BUA Cement emphasized that beyond production targets and financial milestones, BUA Cement envisions its role as a partner in Edo State’s progress, reaffirming its commitment to the state.

It noted that “We are not just here to do business. We are here to build a future, one where Edo State thrives alongside us, a future that we are committed to shaping and nurturing.”

It pointed out that “as Nigeria’s infrastructure needs to grow, so does the role of BUA Cement. Plans are already underway to expand production capacity to 20 million metric tonnes per annum by 2027, a move that will create even more jobs and economic opportunities.

“We see Edo State as a partner, not just a location for our business. Our investment here is long-term. We want to grow together, to ensure that our success translates to prosperity for everyone, government, communities, and businesses alike.”