Abdul Samad Rabiu made $816.7 million from his stake in BUA Foods in 2024

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At a Glance

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• BUA Foods’ stock climbed 114.58% in 2024, boosting Abdul Samad Rabiu’s stake by $816.66 million despite naira depreciation.
• Despite the naira devaluation, Rabiu’s holdings in BUA Foods climbed to $4.48 billion, highlighting the resilience of Nigeria’s food and infrastructure sectors.
• Rabiu’s gains could have hit $4.2 billion in 2024, but economic headwinds and 41.5% naira devaluation slashed $3.37 billion.

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Nigerian billionaire businessman Abdulsamad Rabiu was among Nigeria’s top gainers in 2024 on the Nigerian Exchange as his stake in BUA Foods gained approximately $820 million.

This impressive growth was driven by the strong performance of his 92.64 percent stake in BUA Foods, the Lagos-based food giant that went public in 2022.

The gain comes amid economic headwinds, including a 41.5 percent naira devaluation after the Central Bank of Nigeria liberalized exchange rates.

While many stock valuations broadly declined, Rabiu’s stake in BUA Foods showed resilience. A stable naira could have added $3.37 billion to his portfolio, highlighting the potential upside in a stronger economic environment. 

Rabiu, Nigeria’s third-richest individual, has seen his BUA Foods stake—16,676,364,661 shares—gain N3.7 trillion ($816.66 million) since the start of the year. This surge has boosted his stake’s value to approximately $4.5 billion, making him one of the top gainers on the Nigerian Exchange (NGX) despite a challenging economic environment.

BUA Foods’ stock soars 114.6% in local currency as Rabiu’s stake gains $816.66 million

BUA Foods is the Nigerian-based BUA Group’s unified food business segment. BUA Sugar Refinery Limited, BUA Oil Mills Limited, IRS Flour, IRS Pasta, and BUA Rice Limited are some of its subsidiaries.

Rabiu, the chairman of BUA Group, one of Africa’s fastest-growing manufacturing conglomerates, owns 92.64 percent of BUA Foods. The stake, which is presently worth about $4.5 billion, accounts for a sizable portion of his $4.9-billion net worth according to Forbes. This was initially worth $5.7 billion as of the start of 2024.

BUA Foods’ stock soared by 114.58 percent in 2024, climbing from N193.40 to N415 on the Nigerian Exchange. However, in dollar terms, the gain was moderated to 22.33 percent, rising from $0.125 to $0.269 due to naira depreciation.

This strong performance boosted the company’s market capitalization to over $4.8 billion, drawing heightened investor attention.

Rabiu’s stake in BUA Foods climbed from N3.23 trillion to N6.92 trillion in 2024, making a N3.7 trillion gain. In dollar terms, his holdings rose from $3.66 billion to $4.47 billion, adding $816.66 million.

The performance underscores the resilience of Nigeria’s food and infrastructure sectors, rewarding shareholders amid economic headwinds.

In the first nine months of its 2024 fiscal year, the consolidated food business’ unaudited financial report revealed a 91 percent profit surge from N201.38 billion ($130.41 million), up from N 105.62 billion ($68.4 million) during the same period in 2024.

Expansion plans and market leadership ambitions 

BUA Foods is strengthening partnerships with Turkish and Italian firms to expand its flour and pasta production capacities. On August 20, 2024, the company signed an agreement with IMAS, a Turkish flour milling equipment manufacturer, to build four new wheat flour mills, increasing milling capacity to 2.5 million metric tonnes per annum (MTpa).

Additionally, BUA Foods partnered with FAVA, an Italian pasta equipment manufacturer, to add nine long-cut pasta lines, boosting annual pasta production capacity by 400,000 MTpa to 900,000 MTpa.

These expansions align with BUA Foods’ ambition to lead the flour and pasta markets by 2025. With strong financial performance —  revenue surged 104 percent to N1.07 trillion($693.53 million) in the first nine months of 2024—the company is well-positioned to achieve its growth targets and meet rising consumer demand.