BUA Foods plans major expansion to support Nigeria's economic growth, food security

BUA Foods Plc has unveiled an ambitious expansion plan aimed at increasing local food production, improving the availability of staple foods and strengthening Nigeria’s food security.

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The company announced the plans on Wednesday at its 5th Annual General Meeting (AGM) in Abuja, after shareholders approved a record N504 billion dividend for the 2025 financial year.

The shareholders also approved its audited financial statements, the re-election of retiring directors and other statutory resolutions.

The approved dividend represents a final payout of N28 per ordinary share, following what the company described as another year of strong financial performance.

Speaking at the meeting, the Chairman of BUA Foods, Abdulsamad Rabiu, said the company would significantly expand its flour milling and pasta production capacity, establish a noodles manufacturing business, complete its edible oil operations and roll out an integrated feed mill.

According to him, the projects are expected to position BUA Foods as Nigeria’s largest indigenous food manufacturing company by next year.

“We are not pursuing growth simply for the sake of becoming bigger. We are pursuing growth because scale matters in an industry like ours,” Mr Rabiu said.

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He said the company’s expansion strategy is intended to strengthen Nigeria’s manufacturing sector while delivering greater value to consumers and shareholders.

“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 that contributes to Nigeria’s long-term growth,” he added.

Competition, local production

Mr Rabiu noted that Nigeria’s food manufacturing industry remains highly concentrated, with only a few companies accounting for most of the market.

He said stronger competition among local manufacturers would improve efficiency, encourage innovation and ultimately benefit consumers through better products and pricing.

“Our objective is straightforward: to build sufficient scale to compete effectively with every player in the market,” he said.

“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.”

The company said the expansion projects would significantly increase local production capacity, broaden consumer choice, strengthen supply chains and reduce dependence on imported food products.

Focus on affordability

BUA Foods said keeping food products affordable remains central to its business strategy despite inflation, exchange rate volatility and rising production costs.

Rather than relying primarily on price increases, the company said it has focused on improving operational efficiency, strengthening local sourcing, diversifying energy sources, enhancing procurement processes and leveraging economies of scale to absorb cost pressures.

The company added that while recent economic reforms have improved foreign exchange stability and made business planning more predictable, global supply chain disruptions continue to affect the cost of some production inputs.

Over the next 12 to 24 months, it plans to double production capacity across its wheat-based products while expanding into the noodles and edible oil markets to meet rising consumer demand.

Call for greater agricultural investment

Speaking after the AGM, BUA Foods Non-Executive Director, Kabiru Rabiu, called for stronger collaboration between government and the private sector to improve agricultural productivity and strengthen Nigeria’s food security.

**BUA Foods Non-Executive Director, Kabiru Rabiu, addressing journalists after the meeting**

He urged governments at all levels to make fertilisers, herbicides and other critical farm inputs more affordable through targeted support for farmers.

Mr Rabiu also identified insecurity as one of the biggest constraints to agricultural production, although he acknowledged ongoing efforts by the government to address the challenge.

He further advocated increased investment in irrigation infrastructure to reduce dependence on seasonal rainfall and support year-round farming across the country.

READ ALSO: BUA Foods seeks shareholders’ approval for ₦504 billion dividend payment

Nigeria has faced persistent food inflation over the past two years, driven by insecurity in farming communities, high transportation and energy costs, exchange rate pressures and climate-related disruptions affecting agricultural production.

In response, both the Federal Government and major food manufacturers have announced measures aimed at increasing domestic production, strengthening local value chains and reducing reliance on food imports.

BUA Foods has emerged as one of Nigeria’s largest food processing companies, with operations spanning sugar refining, flour milling and pasta production. The company reported revenue of N1.77 trillion for the 2025 financial year, representing a 16 per cent increase from the previous year, while profit after tax rose by 95 per cent to N518.4 billion, reflecting stronger operational performance and increased demand for its products.