Nigerian billionaire Abdul Samad Rabiu’s BUA Cement profit nearly quintuples to $260 million

For Nigerian billionaire Abdul Samad Rabiu, the latest numbers from BUA Cement Plc tell a clear story of a business gaining strength in a market that has tested even the most established industrial players. The company’s performance for the year ended December 31, 2025, shows profit rising sharply to about $260 million, a result that not only exceeded investor expectations but also underlined its position as one of Nigeria’s most profitable companies.

The figures reflect a 379 percent jump in profit, climbing from N73.9 billion ($54.2 million) in 2024 to N356 billion ($261 million) in 2025. The improvement was supported by stronger sales and tighter cost control, while pressure from currency movements eased significantly. Net foreign exchange losses narrowed to N9.7 billion ($7.11 million), down from N92.1 billion ($67.5 million) a year earlier, removing a major drag on earnings and helping lift the bottom line.

Bagged cement lifts revenue, exports grow

The profit surge was fueled by strong revenue growth. During the period under review revenue climbed 34.5 percent from N876.5 billion ($642.5 million) in 2024 to N1.179 trillion ($864.3 million) in 2025. Bagged cement drove the bulk of sales, rising to N1.17 trillion ($857.7 million) from N874.5 billion ($641.1 million), while bulk cement also grew, albeit from a smaller base, increasing to N7.56 billion ($5.54 million) from N1.97 billion ($1.44 million).

Most of the company’s earnings continue to come from within Nigeria. Domestic sales accounted for N1.16 trillion ($850.4 million) of total revenue, reflecting the company’s deep footprint in its home market. Export revenue, while still relatively small, expanded sharply to N14.8 billion ($10.84 million) from N631.64 million ($463 million), even as the company operates without cement plants outside Nigeria. The revenue base remains broad, with no single customer contributing more than 10 percent of total sales.

Costs moved in mixed directions. Distribution and selling expenses rose to N63.6 billion ($46.6 million), while administrative expenses increased to N27.8 billion ($20.37 million). At the same time, finance costs declined to N56.3 billion ($41.27 million), offering some relief. The company’s tax bill, however, rose in line with higher earnings, increasing to N109.2 billion ($80.05 million) from N25.7 billion ($18.8 million) in the prior year.

BUA Cement assets hit $1.36 billion

BUA Cement, a key unit of BUA Group, produces up to 11 million tonnes of cement annually and remains Nigeria’s second-largest cement manufacturer. Rabiu, who founded the group and holds a 95.78 percent stake in the cement business, has continued to expand its scale, building it into one of the country’s most profitable industrial companies.

The balance sheet reflects that growth. Total assets increased to N1.86 trillion ($1.36 billion) as of December 31, 2025, from N1.57 trillion ($1.15 billion) a year earlier. Total equity rose to N672.9 billion ($493.27 million) from N388.55 billion ($284.8 million), while retained earnings climbed to N462.3 billion ($338.9 million) from N175.7 billion ($128.8 million).

$248 million, 20 million tonnes target

On the back of the stronger performance, the board recommended a dividend of N10 ($0.0073) per share, compared with N2.05 ($0.0015) paid in 2024. The total dividend payout amounts to N338.6 billion ($248.2 million), up from N69.4 billion ($50.9 million) in the previous year.

The company is also looking ahead, with plans to increase annual production capacity to 20 million tonnes within the next 20 months. That effort is supported by a $240 million expansion project, including a new power plant and related infrastructure.

With installed capacity currently at about 11 million tonnes per year, the planned increase signals a continued focus on meeting demand in Nigeria, where cement consumption remains closely linked to infrastructure spending and private construction activity.