Chairman of BUA Foods Plc, Alhaji Abdul Samad Rabiu, on Wednesday said the company’s aggressive expansion drive was aimed at supporting the country’s long-term economic growth.
He said the company’s responsibility transcends generating returns for shareholders to building a stronger indigenous industrial base capable of competing globally.
Rabiu spoke at the company’s 2025 Annual General Meeting (AGM) in Abuja, where shareholders also approved a final dividend of N504 billion alongside other statutory resolutions, commending its positive financial performance amid local and global headwinds.
He said the company’s next phase of growth was designed to strengthen competition, deepen local manufacturing, create jobs and contribute to national development by expanding domestic production capacity.
He stressed that while the company remained proud of its financial performance, its broader ambition was to help build a more competitive food manufacturing industry that would support Nigeria’s industrialisation agenda.
He said, “We have a responsibility not only to create value for shareholders, but also to help build a stronger, more competitive industry that contributes to Nigeria’s long-term growth.”
According to him, the philosophy underpins one of the largest expansion programmes in the company’s history, adding that once ongoing projects are completed next year, BUA Foods would emerge as the largest player in its sector in Nigeria.
He, however, maintained that the expansion was not driven by a desire for size alone but by the conviction that greater scale would enable the company to compete more effectively while delivering wider benefits to consumers, investors and the economy.
He noted that four companies currently control almost 90 per cent of the market, with BUA Foods remaining the only indigenous Nigerian company among the leading operators.
Rabiu pointed out that stronger competition would improve efficiency, stimulate innovation and enhance value creation across the industry.
He said, “Our objective is straightforward: to build sufficient scale to compete effectively with every player in the market. We believe Nigeria benefits when there are strong indigenous companies capable of competing at the highest level, investing for the long term and challenging established market positions.”
“That is the logic behind our expansion. We are increasing capacity, strengthening our competitive position, and building a business that can compete on equal terms with anyone in the industry. A more competitive industry is ultimately a healthier industry, and that is good for consumers, good for investors, and good for Nigeria.
“Our history demonstrates what is possible when competition is driven by efficiency, transparency, and strong execution. When BUA listed five years ago, we were significantly smaller than some of the more established players in the industry. Yet despite our smaller size, we consistently delivered stronger profitability and better returns.
“That performance was not an accident. It was the result of efficient operations, disciplined management, prudent capital allocation, and a relentless focus on execution.”
The BUA chairman said the expansion programme would strengthen the company’s competitive position while helping to build a healthier industry capable of delivering better outcomes for consumers and investors.
According to him, Nigeria stands to gain when local businesses continue to invest, expand operations, develop local capacity and reinvest earnings into the domestic economy.
Rabiu explained that the company’s growth journey had demonstrated that operational efficiency, transparency and disciplined management remained more important than size.
Regaling in the company’s listing five years ago, he said BUA Foods had consistently outperformed some larger competitors despite operating on a smaller scale.
He attributed that performance to prudent capital allocation, efficient operations and strong execution rather than market dominance.
He added that the company’s success also changed investor expectations within the industry by demonstrating the value that transparent corporate governance and efficient management could unlock.
Rabiu maintained that those same principles would continue to guide the company as it transitions into the industry’s largest player.
He said the company’s ambition was to build an indigenous manufacturing champion capable of competing with the best while contributing meaningfully to Nigeria’s industrial development and economic growth.
Essentially, the expansion programme includes a significant increase in flour milling capacity, the introduction of an integrated feed mill business, the planned launch of its noodles business and the completion of its edible oilsoperations.
These projects, expected to come on stream next year, are projected to substantially increase domestic manufacturing capacity and position the company as the cou try’s largest indigenous food manufacturing company.
The company said the investments were intended to increase the availability of essential food products, thus addressing food inflation, support local manufacturing, create employment opportunities and reinforce Nigeria’s industrial development.
The strategy also reflected its long-term vision of building one of Africa’s most integrated food manufacturing businesses while delivering lasting value to consumers, shareholders and the wider economy.
In the period umder review, BUA Foods posted revenue of N1.77 trillion for the 2025 financial year, representing a 16 per cent increase over the previous year, while Profit After Tax (PAT) rose by 95 per cent to N518.4 billion.
The company attributed the performance to disciplined execution, operational efficiency and a resilient business model despite a challenging operating environment.
Meanwhile, responding to questions after the AGM, Non-Executive Director, Kabiru Rabiu, said the company remained confident of achieving its strategic targets despite persistent inflationary pressures, energy costs and global supply chain disruptions.
He said BUA Foods had focused on improving operational efficiency rather than relying on price increases to sustain growth.
According to him, the company had continued to optimise procurement, diversify its energy mix, deepen local sourcing and strengthen supply chain resilience to reduce operating costs while maintaining product availability and affordability.
He added that performance remained broadly in line with expectations, supported by resilient demand, disciplined execution and continued investment in capacity expansion.
On the company’s investment priorities over the next two years, Kabiru Rabiu said it was doubling capacity across its wheat-based product portfolio while expanding into the noodles and edible oil segments to meet rising consumer demand.
He explained that the projects would strengthen production capacity, deepen market penetration and support sustainable revenue growth over the long term.
He also said affordability remained central to the company’s operations, noting that management continued to absorb cost pressures through productivity improvements, procurement optimisation, energy efficiency and economies of scale before considering product price adjustments.
On recent economic reforms, he acknowledged improvements in foreign exchange stability and planning visibility, adding that the policy environment had strengthened investor confidence and reinforced the company’s long-term investment outlook.
He added that government policies promoting domestic food production and responsible import substitution were encouraging local manufacturing and supporting BUA Foods’ expansion strategy.
Kabiru Rabiu further disclosed that ongoing investments across the company’s sugar, flour, pasta, rice, edible oil and noodles businesses are expected to increase overall production capacity by more than 50 per cent, significantly improving food availability while positioning BUA Foods for sustained long-term growth.
He said management would continue to prioritise capacity expansion, productivity improvements and deeper local sourcing as the company pursues its ambition of becoming the country ‘s leading indigenous publicly listed food manufacturing company.
James Emejo
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