BUA Foods Plc, majority-owned by Nigeria’s third-richest man Abdul Samad Rabiu, has partnered with Turkish flour milling equipment manufacturer IMAS to increase wheat flour milling capacity.
The agreement will enhance BUA Foods’ milling capacity to 2.5 million tonnes per year (mtpa), strengthening its production capabilities and market position.
The agreement was signed at a ceremony attended by top officials from both firms. This development is consistent with the company’s overall objective to increase production across its many business divisions, which follows a large investment in one of its integrated sugar estates earlier this year.
Under the terms of the agreement, BUA Foods will build four cutting-edge wheat and flour milling facilities, increasing its milling capacity to 3,200 tonnes per day. The development is projected to improve Nigeria’s food security by increasing domestic production, lowering reliance on foreign exchange-impacted raw commodities, and creating new job opportunities across the country.
“This collaboration with IMAS demonstrates our commitment to improving food security in Nigeria,” stated Abdul Samad Rabiu, Chairman of BUA Foods Plc. “The new facilities will elevate our production of high-quality flour and enable us to better serve the Nigerian market with top-tier products.”
Rabiu further stressed the strategic relevance of this investment in helping BUA Foods achieve its goal of expanding market share in Nigeria’s flour business. The new mills will enable BUA Foods to meet a wide range of flour requirements, reinforcing its position as a leading participant in Nigeria’s food industry.
BUA Foods, a division of the Nigerian-based BUA Group, has several businesses, including BUA Sugar Refinery Limited, BUA Oil Mills Limited, IRS Flour, IRS Pasta, and BUA Rice Limited. The corporation is mostly owned by Nigeria’s second richest man, Abdul Samad Rabiu, and his son, Isyaku Naziru Rabiu.
In the first half of 2024, BUA Foods reported a 38% rise in profit after tax, from N95.19 billion ($60.47 million) in 2023 to N130.93 billion ($83.2 million). Strong sales of sugar, wheat, and pasta drove the group’s income up 110 percent, from N320.9 billion ($204 million) to N672.3 billion ($427.2 million).
BUA Foods’ strong financial performance is also reflected in its asset base, which has increased from N1.07 trillion ($680.2 million) at the end of 2023 to N1.1 trillion ($700 million) by June 30, 2024. Furthermore, retained earnings increased dramatically from N254 billion ($161.5 million) to N384.9 billion ($244.5 million) during the same time, cementing BUA Foods’ position as a market leader in Nigeria’s food business.
