Rabiu Abdulsamad's BUA Secures N233bn Loan for Cement Factory Expansion in Sokoto, Targets Dangote's Dominance

Rabiu Abdulsamad's BUA Secures N233bn Loan for Cement Factory Expansion in Sokoto, Targets Dangote's Dominance

  • BUA Cement, owned by Rabiu Abdulsamad, has secured a $500 million loan from international creditors
  • The loan will be used to expand its cement plant in Sokoto state a move aimed at increasing BUA Cement's production capacity
  • This will enable BUA Cement to challenge the dominance of Dangote Cement in the Nigerian market

Rabiu Abdulsamad's BUA Cement, one of Nigeria's leading cement manufacturers, has secured a substantial $500 million(N233 billion) loan from international creditors,

The loan, facilitated by the International Finance Corporation (IFC) in collaboration with the African Development Bank (AfDB), Africa Finance Corporation (AFC), and Deutsche Investitions- und Entwicklungsgesellschaft (DEG).

BUA cement
Rabiu, Nigeria's second richest man, is the biggest shareholder in BUA cement. Photo credit: Bloomberg
Source: UGC

This was captured in a corporate statement released on June 5, 2023, addressed to BUA Cement's shareholders and the Nigerian Exchange Limited (NGX).

How BUA cement plans to utilised the loan

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The corporate document shows that the funds from the loan will be utilised to finance the ongoing expansion of BUA Cement's integrated cement plant in Kalambaina, Sokoto State.

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The expansion project aims to raise the plant's capacity to 8.0 million metric tons per annum (MTPA).

Additionally, the loan will support the development of other supporting utilities necessary for the cement production process, Punch reports.

By increasing its production capacity, BUA Cement hopes to maintain its competitive edge against rivals such as Dangote Cement and Lafarge Cement.

Currently, Dangote Cement, owned by billionaire Aliko Dangote is the leading cement maker in the country.

Part of the statement signed by the company secretary, Satomi Hauwa, reads:

"We would like to provide an update regarding our previous disclosure on 25th July 2022. In that disclosure, we informed the Nigerian Exchange Limited (NGX), our valued shareholders, and the investing public about BUA Cement Plc's (BUA Cement) plans for expansion projects and a potential debt raise of up to Five Hundred Million US Dollars ($500,000,000.00) from International Finnane Corporation (IFC), as the lead arranger along with other lenders."

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Rabiu Abdulsama makes N420bn in one week

Meanwhile, the Nigerian billionaire race is becoming more and more interesting as Rabiu Abdulsamad has wealth increases.

This is coming just days after becoming Nigeria's second richest man, he has also made over N420 billion within a week.

While Dangote is still Nigeria's richest man, his wealth has dropped by over N80 billion as Rabiu closes in.

Source: Legit.ng

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