Strong Indigenous Companies Benefit Nigeria More – Rabiu

The chairman of BUA Foods Plc, Alhaji Abdul Samad Rabiu, has called for greater support for indigenous participation in Nigeria’s economy, saying the country stands to benefit from strong local companies that can compete at the highest level, make long-term investments, and challenge established market leaders.

Rabiu made this disclosure at the company’s 5th Annual General Meeting (AGM), held in Abuja on Wednesday, where BUA Foods announced a Profit After Tax (PAT) of N518.4 billion for the financial year ended December 31, 2025, up from N265.9 billion recorded in the previous year.

The chairman of BUA Foods said that while the company’s strong financial performance was encouraging, it remained committed to building a more competitive food manufacturing industry that supports Nigeria’s long-term economic development.

“We recognise that we operate in an industry that plays a critical role in the development of our country. That is why we are investing heavily in expansion. By next year, when our ongoing projects are completed, BUA Foods will become the largest player in our sector in Nigeria. We are not pursuing growth simply for the sake of becoming bigger; we are pursuing growth because scale matters in an industry like ours,” he said.

The company said it is doubling its flour milling and pasta production capacities, establishing a new integrated feed mill business, preparing to launch its noodles business, and finalising its edible oils operations. It added that these projects, which are expected to come on stream next year, will significantly boost local production capacity and further strengthen BUA Foods’ position as Nigeria’s largest indigenous food manufacturing company.

According to the company, the expansion reflects its long-term commitment to increasing the availability of essential food products, supporting local manufacturing, creating jobs, and making a meaningful contribution to Nigeria’s industrial and economic development.

The company said it remained conscious of its role in a critical sector that contributes significantly to national development. Rabiu said the company’s responsibility goes beyond creating value for shareholders to building a stronger and more competitive food industry that supports Nigeria’s long-term economic growth.

Speaking in a post-AGM interview, non-executive director of BUA Foods, Alhaji Kabiru Rabiu, stated that the company is intensifying its backward integration drive and expanding processing capacity to reduce Nigeria’s reliance on food imports and enhance national food security.

Kabiru Rabiu, who is also group executive director of BUA Foods, noted that as the largest indigenous food business in Nigeria, the company has a responsibility to lead in both production and processing. “We find ourselves confronting the challenge of food insecurity despite having a significant amount of arable land. While approximately 60 per cent of our land is suitable for cultivation, we still rely heavily on imports for much of our food supply, highlighting the need for self-sufficiency,” Rabiu said.

He outlined three priority areas for backward integration: irrigation, yield improvement, and access to inputs for farmers. He noted that over 90 per cent of food production in Nigeria still depends on rainfall, limiting harvest cycles. “By improving our irrigation systems, we could significantly increase our harvest frequency. For instance, with better irrigation, it’s possible to cultivate rice multiple times a year, rather than just once,” he said.

On yields, Rabiu said, “Nigeria’s rice output averages about four tonnes per hectare, compared to seven tonnes in countries like India and Thailand. To close the gap, BUA Foods is working directly with rice farmers through an outgrower scheme that provides mechanisation, irrigation support, and access to fertilisers. Nigeria’s fertiliser consumption is only 20kg per hectare, far below that of countries such as Thailand and China. This inefficiency must be addressed.”

He stressed that solving the problem requires collaboration, saying, “No single entity can solve this issue alone. We are committed to taking on this challenge collaboratively to enhance food security for the nation.”

Alongside farming initiatives, BUA Foods is ramping up processing capacity. Rabiu said the company has doubled its wheat milling capacity and tripled its edible oil production through recent investments. “The group is also diversifying into affordable nutrition with its entry into the instant noodles market, aimed at making nutritious food accessible to consumers at the bottom of the economic pyramid,” he stated.

He pointed out that the company declared a dividend of N28 per share for the 2025 financial year and remains one of the few low-debt players in the sector.

He expressed optimism about BUA Foods’ growth trajectory into 2026, citing strong shareholder support and organic growth. He restated that the company is dedicated to improving food security and enhancing its contributions to agricultural production and processing.