BUA Signs $240m Deal with Chinese Company to Expand Cement Supply in Nigeria
- BUA Cement has signed a $240 million agreement with CBMI to build a new cement line at its Sokoto plant
- The project will add 3 million metric tons to annual output, raising total capacity to 20 million tons
- The Sokoto plant is the only cement facility in Nigeria’s North-West and is key to regional supply
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
BUA Cement Plc has signed an agreement with China-based engineering firm CBMI to build a new 3-million-metric-ton-per-annum cement production line at its Sokoto plant, in a move aimed at expanding capacity and improving cement supply across Northern Nigeria.
Source: Twitter
According to a statement by the company, the $240 million investment will cover the construction of cement line six, a dedicated power plant and other supporting infrastructure. When completed, the expansion will raise BUA Cement’s total installed production capacity to 20 million metric tons per year.
The deal strengthens BUA Cement’s long-standing partnership with CBMI, which spans more than 15 years. Over that period, CBMI has delivered cement production lines with a combined capacity of about 14 million metric tons at BUA’s facilities in Obu, Edo State, and Sokoto.
BUA Cement owns only plant in Northwest Nigeria
BUA Cement said the Sokoto plant remains strategically important as the only cement production facility in Nigeria’s North-West zone.
The addition of the new line is expected to ease supply constraints in the region, reduce transportation costs and improve access to cement for infrastructure developers, contractors and small construction businesses.
How the new production line will be powered
Energy for the expanded operations will be supported by BUA Group’s 700-ton-per-day mini liquefied natural gas (LNG) plant in Kogi State, which is scheduled for completion later this year.
The LNG facility is expected to supply cleaner and more reliable energy to both the new Sokoto line and existing production lines, improving efficiency and reducing emissions.
Speaking on the investment, the founder and chief executive of BUA Group, Abdul Samad Rabiu, said the expansion aligns with recent economic reforms introduced by the administration of President Bola Tinubu.
He noted that the reforms have improved the ease of establishing and operating manufacturing facilities while stimulating demand for infrastructure and construction projects.
Source: Twitter
Rabiu added that the policy environment now offers stronger incentives for long-term industrial investments, positioning BUA Cement to support national development through increased output, job creation and the supply of materials critical to housing and infrastructure delivery.
Industry observers say the expansion could have positive effects across the construction value chain, benefiting transporters, distributors, artisans and small contractors, particularly in Northern Nigeria, where cement supply has been limited.
With the new Sokoto production line and supporting energy infrastructure, BUA Cement is expected to play a larger role in meeting domestic cement demand while contributing to industrial growth and regional economic development.
Rabiu overtakes Adenuga as second richest Nigerian
Legit.ng earlier reported that the chairman of BUA Group, Abdul Samad Rabiu, has emerged as Nigeria's second richest person in a new ranking by Forbes, overtaking Mike Adenuga, the chairman of Globacom.
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The BUA boss's rise was caused by the surge in his BUA Foods fortune, which emerged as Nigeria's most profitable company.
Meanwhile, both Rabiu and Adenuga are behind Aliko Dangote, chairman of the Dangote Group, in the billionaires’ ranking.
Source: Legit.ng
