Abdul Rabiu opens cement factory, intensifies competition with Dangote Cement, others

BUA Cement has commenced production at its state-of-the-art Sokoto cement plant Line 5, a significant milestone in the company’s strategic expansion plans.

The project is a multimillion-dollar expansion project with a 3-million-metric-tonne capacity per year, led by Nigeria’s billionaire Abdul Samad Rabiu.

Legit.ng had reported that the plant, earlier set for inauguration in January 2024, would trigger a slash in cement prices.

Sokoto plant commences operation

With the start of operations on Monday, December 18, 2023, the Sokoto cement plant Line 5 demonstrates BUA Cement's dedication to its expansion goals and brings the company's installed capacity closer to the estimated 17 million metric tons annually.

As soon as ongoing projects are finished, the company aims to reassess prices in Q1 2024.

Billionaire.africa reported that the opening of the new Line 5 cement plant in Sokoto demonstrates the company's dedication to satisfying the rising demand for high-quality cement.

It added that BUA Cement is well-positioned to contribute more significantly to the infrastructure and building development of Nigeria thanks to its increased manufacturing capacity.

Strong financial record

Under Rabiu's direction, BUA Cement posted strong financial results for the first nine months of 2023.

In the first nine months of 2022, the company's revenue increased to N335.86 billion from N262.6 billion.

Concurrently, the profit after tax escalated from N74.01 billion to N76.06 billion, thereby reinforcing its standing as a significant cement manufacturer in Nigeria and a notable cement producer in Africa.

This comes after the BUA Group took a significant step in crashing the price of their cement from N5,500 to an ex-factory price of N3,500 per bag.

Legit.ng, however, reported that the cement has continued to be sold for N5,000 and above in several regions of the country.