BUA Cement plans 20MT capacity with $240 million expansion

BUA Cement Plc, the Nigerian cement producer controlled by billionaire Abdul Samad Rabiu, plans to lift its annual production capacity to 20 million tonnes within the next 20 months, as it moves ahead with a $240 million expansion that includes a new power plant and supporting infrastructure.

The expansion marks another step in BUA’s push to scale operations in Africa’s largest cement market, where demand remains closely tied to government infrastructure spending and private-sector construction. The company currently operates with installed capacity of about 11 million tonnes a year.

The plan was discussed earlier this week during a meeting at BUA’s Dubai office with executives from CBMI Construction Co. Ltd., a China-based engineering firm that designs and builds cement plants and power facilities. The talks centered on adding new production lines to narrow the capacity gap with larger competitors, including Dangote Cement, which has installed production capacity of 52 million tonnes annually.

BUA boosts capacity with CBMI

In a statement issued Wednesday, BUA confirmed it has signed an agreement with CBMI to construct a new cement line with capacity of 3 million tonnes per year at its Sokoto plant. Once completed, the project will raise BUA Cement’s total annual capacity to 20 million tonnes. The company said the new line will be supported by power generated from its Kogi LNG facility and is expected to be completed within 20 months.

Rabiu described the deal as a continuation of a long-standing working relationship with CBMI, which has executed several projects for the group over the past decade. In a post following the meeting, he said the companies have worked together for more than 15 years, delivering cement lines totaling about 14 million tonnes of capacity.

“This next expansion would bring our total annual cement production capacity to 20 million tons,” Rabiu said, adding that the partnership has played a central role in BUA’s growth across northern Nigeria. The Sokoto project is expected to strengthen BUA’s footprint in the North-West and surrounding regional markets, where logistics costs and access to power have historically weighed on production efficiency. Cement producers in Nigeria have increasingly invested in captive power to manage energy costs and reduce exposure to grid disruptions.

BUA Cement growth reflects market strength

Investors on the Nigerian Exchange are watching closely as BUA Cement prepares to publish its 2025 financial results. It reported a profit of N289.86 billion ($200 million) in the first nine months of 2025, sharply higher than N48.97 billion ($33.6 million) recorded in the same period a year earlier. For the full year 2024, BUA posted profit of N73.9 billion ($50.7 million).

Revenue growth has been supported by firm cement prices and sustained demand. Nine-month revenue rose to N858.7 billion ($590 million), compared with N583.4 billion ($400.7 million) in 2024. Rabiu remains BUA Cement’s controlling shareholder, with a 97.66 percent stake. The company says the latest investment is aimed at improving scale, lowering unit costs over time, and supporting earnings as Nigeria’s construction market continues to evolve.