BUA Foods Plc, the Lagos-based food giant, is set to expand food production capacity across key segments after shareholders approved a record N504 billion ($366 million) dividend payout, as Nigeria’s second-largest food company seeks to strengthen its position in the country’s manufacturing sector.

The company said its next phase of investment would focus on increasing flour milling and pasta capacity, launching a noodles business, completing edible oil operations and developing an integrated feed mill.

The projects are expected to increase local food production, improve supply reliability and support efforts to reduce Nigeria’s dependence on imported food products.

Rabiu targets bigger local manufacturing role

Speaking at the company’s fifth Annual General Meeting in Abuja on Wednesday, BUA Foods Chairman Abdul Samad Rabiu said the expansion was not aimed solely at making the company larger but at building a stronger domestic food industry.

“By next year, when our current projects are completed, BUA 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,” Rabiu said.

Shareholders approved all resolutions presented at the meeting, including the payment of a final dividend of N28 ($0.02) per ordinary share, totalling N504 billion ($366 million), as well as the company’s audited financial statements for the year ended Dec. 31, 2025.

The approval followed a strong financial performance in 2025, with BUA Foods reporting group revenue of N1.77 trillion ($1.28 billion) and profit after tax of N518.39 billion ($376.5 million). Rabiu said the company’s role extended beyond delivering returns to investors, adding that BUA Foods also had a responsibility to support Nigeria’s industrial growth.

“While we are proud of our financial performance, we recognise that we operate in an industry that plays an important role in the development of our country. We therefore have a responsibility not only to create value for shareholders, but also to help build a stronger, more competitive industry,” he said.

Expanding competition in Nigeria’s food market

Rabiu said Nigeria’s food manufacturing industry remained highly concentrated, with four companies controlling almost 90% of the market, while BUA remained the only indigenous Nigerian company among the leading players.

He said stronger competition would help improve efficiency, encourage innovation and deliver better value for consumers.

“In any concentrated market, the strongest force for efficiency, innovation and value creation is competition. The more competitive the market becomes, the stronger the industry becomes and the greater the benefits for consumers, investors and the wider economy,” Rabiu said.

He added that BUA Foods’ long-term goal was to build enough capacity to compete with major industry players while encouraging greater participation by Nigerian-owned companies.

“Our objective is straightforward: to build sufficient scale to compete effectively with every player in the market. Nigeria benefits when there are strong indigenous companies capable of investing for the long term and challenging established market positions,” he said.

The company said its investment programme over the next 12 to 24 months would focus on doubling capacity across its wheat-based products portfolio while expanding into noodles and edible oils.

BUA Foods said the projects would improve product availability, strengthen supply chains, expand consumer choice and support long-term revenue growth.

Integrated food manufacturing strategy

BUA Foods is the food business arm of BUA Group, one of Africa’s largest privately owned manufacturing companies. The company operates an integrated production model covering sugar refining, flour milling, pasta manufacturing, rice processing and edible oils.

Its subsidiaries include BUA Sugar Refinery Limited, BUA Oil Mills Limited, IRS Flour, IRS Pasta and BUA Rice Limited.

Rabiu, who owns 92.64% of BUA Foods, is Nigeria’s second-richest person, with an estimated net worth of $13.7 billion, according to Forbes.

The company said its integrated model allows greater control over production, sourcing and distribution as it expands across Nigeria’s fast-growing food market.