No need lobbying for foreign exchange due to CBN reforms – BUA Chairman
Chairman of BUA Cement Plc, Dr Abdul Samad Rabiu
• BUA Cement increased in its revenue to N877bn in 2024, from N460bn in 2023.
Chairman of BUA Cement Plc, Dr Abdul Samad Rabiu, says foreign exchange reforms by the Central Bank of Nigeria have eliminated the need for companies to lobby for FX.
Rabiu made the remarks on Monday in Abuja during a media briefing following the 9th Annual General Meeting of BUA Cement Plc.
He described the current FX regime as more transparent and market-driven, contrasting it with previous practices that, according to him, created an artificial scarcity and forced companies to seek favours to access dollars.
“I was making a joke a few weeks ago that I’ve only seen the current CBN Governor maybe twice since his appointment. That’s because I don’t need him. “Before now, I used to visit the CBN every two weeks to lobby for FX. That was the only way to survive,” Rabiu said.
He criticised the previous FX system, where the official rate was significantly lower than the parallel market rate, noting that it created distortions and limited access for many businesses.
“The rate was N500 or N600 officially, but nobody could get it. On the street, it was closer to N1,000. It was an artificial rate,” he said.
The BUA chairman praised the current reforms for unifying the market, saying, “Now, the rate you get is what everyone else gets. You go to the bank, you get FX at the market rate.”
Rabiu expressed optimism that the naira would continue to strengthen, projecting that the exchange rate could fall to around N1,200/$ in the coming months, down from highs of nearly N2,000 earlier in the year.
He added that the stronger naira was already bringing down the prices of commodities, including cement and food items.
Addressing concerns over cement prices, Rabiu explained that the high cost of production—driven by FX volatility, energy costs, and imported equipment—contributed to recent price hikes.
He said that despite these challenges, BUA had tried to keep prices stable.
Addressing the company’s financials, Rabiu said BUA Cement grew its revenue to N877bn in 2024, from N460bn in 2023, despite foreign exchange losses of N93.9bn.
He disclosed that profit before tax rose by 48.2 per cent to N99.63bn, and added that the company’s return on average capital employed rose to 15 per cent, up from 10 per cent in 2023.
Earnings per share increased to N2.18 in 2024 from N2.05 in 2023, representing a 6.3 per cent increase.
“This performance was driven by a combination of increased dispatch volumes and prudent pricing strategies, even as the Company absorbed rising input costs.
“Cash generation grew significantly, enabling increased capital expenditure financing and supporting our strategic efforts to reduce exposure to foreign currency obligations.
“This was achieved by paying down import finance facilities and aligning accrued interest payments with available cash flows,” he said.
Rabiu also revealed that BUA Cement’s profit after tax in Q1 2025 stood at N81bn, higher than its entire earnings for 2024.
He projected full-year 2025 earnings could reach N250bn, attributing the improvement to operational efficiency, reduced FX losses, and increased production capacity.
He confirmed that the company had no immediate plans to expand beyond its current 20 million metric tonne capacity, following the recent commissioning of two additional cement lines in Sokoto and Edo States.
Rabiu also reaffirmed BUA’s commitment to shareholder value, noting that a N2.05 dividend per share, representing a 94 per cent payout ratio, would be distributed.
Also speaking, the Managing Director and CEO of BUA Cement, Yusuf Binji, said the company had delivered excellent financial performance, resilience, strategic agility, and a firm commitment to growth in a dynamic environment.
Binji said the company was addressing its largest cost driver — energy — by building a 700-tonnes-per-day LNG regasification plant to guarantee supply and reduce cost.
He disclosed that BUA Cement had renegotiated existing service contracts in favour of local content to reduce FX exposure and drive down operational costs.
Rabiu made the remarks on Monday in Abuja during a media briefing following the 9th Annual General Meeting of BUA Cement Plc.
He described the current FX regime as more transparent and market-driven, contrasting it with previous practices that, according to him, created an artificial scarcity and forced companies to seek favours to access dollars.
“I was making a joke a few weeks ago that I’ve only seen the current CBN Governor maybe twice since his appointment. That’s because I don’t need him. “Before now, I used to visit the CBN every two weeks to lobby for FX. That was the only way to survive,” Rabiu said.
He criticised the previous FX system, where the official rate was significantly lower than the parallel market rate, noting that it created distortions and limited access for many businesses.
“The rate was N500 or N600 officially, but nobody could get it. On the street, it was closer to N1,000. It was an artificial rate,” he said.
The BUA chairman praised the current reforms for unifying the market, saying, “Now, the rate you get is what everyone else gets. You go to the bank, you get FX at the market rate.”
Rabiu expressed optimism that the naira would continue to strengthen, projecting that the exchange rate could fall to around N1,200/$ in the coming months, down from highs of nearly N2,000 earlier in the year.
He added that the stronger naira was already bringing down the prices of commodities, including cement and food items.
Addressing concerns over cement prices, Rabiu explained that the high cost of production—driven by FX volatility, energy costs, and imported equipment—contributed to recent price hikes.
He said that despite these challenges, BUA had tried to keep prices stable.
Addressing the company’s financials, Rabiu said BUA Cement grew its revenue to N877bn in 2024, from N460bn in 2023, despite foreign exchange losses of N93.9bn.
He disclosed that profit before tax rose by 48.2 per cent to N99.63bn, and added that the company’s return on average capital employed rose to 15 per cent, up from 10 per cent in 2023.
Earnings per share increased to N2.18 in 2024 from N2.05 in 2023, representing a 6.3 per cent increase.
“This performance was driven by a combination of increased dispatch volumes and prudent pricing strategies, even as the Company absorbed rising input costs.
“Cash generation grew significantly, enabling increased capital expenditure financing and supporting our strategic efforts to reduce exposure to foreign currency obligations.
“This was achieved by paying down import finance facilities and aligning accrued interest payments with available cash flows,” he said.
Rabiu also revealed that BUA Cement’s profit after tax in Q1 2025 stood at N81bn, higher than its entire earnings for 2024.
He projected full-year 2025 earnings could reach N250bn, attributing the improvement to operational efficiency, reduced FX losses, and increased production capacity.
He confirmed that the company had no immediate plans to expand beyond its current 20 million metric tonne capacity, following the recent commissioning of two additional cement lines in Sokoto and Edo States.
Rabiu also reaffirmed BUA’s commitment to shareholder value, noting that a N2.05 dividend per share, representing a 94 per cent payout ratio, would be distributed.
Also speaking, the Managing Director and CEO of BUA Cement, Yusuf Binji, said the company had delivered excellent financial performance, resilience, strategic agility, and a firm commitment to growth in a dynamic environment.
Binji said the company was addressing its largest cost driver — energy — by building a 700-tonnes-per-day LNG regasification plant to guarantee supply and reduce cost.
He disclosed that BUA Cement had renegotiated existing service contracts in favour of local content to reduce FX exposure and drive down operational costs.
