The Chairman and Founder of BUA Group, Abdul Samad Rabiu has announced plans to construct a new plant in Sokoto State, which will add five million tonnes of cement to the nation’s supply capacity and ensure export to neighbouring countries.
Speaking to journalists in Abidjan on the sidelines of the International Finance Corporation (IFC) and partners signing of agreement for BUA’s $500 million cement plant in Northern Nigeria and the Sahel, he said the investment would create jobs and contribute to economic and infrastructural development within Nigeria and others.
The IFC’s $500 million financing package includes a $160.5 million loan from IFC’s own account, a $94.5 million loan through the Managed Co-Lending Portfolio Programme (MCPP) and $245 million in parallel loans from syndication partners; African Development Bank (AfDB) – $100 million, Africa Finance Corporation (AFC) – $100 million and German Investment Corporation, Deutsche Investitions-und Entwicklungsgesellschaft (DEG)–$45 million.
The IFC finance is the largest-ever investment in northern Nigeria, providing a financing package alongside African and European partners to help the company part-finance and develop two new energy-efficient cement production lines that will create up to 12,000 direct and indirect jobs.
The facility will allow BUA, Nigeria’s second largest cement producer, to develop new production lines in Sokoto. The plants will run partly on alternative fuels derived from waste and solar power. Each will produce about three million tons of cement yearly when completed, serving markets in Nigeria, Niger and Burkina Faso.
The project is also expected to create about 1,000 direct jobs and 10,800 indirect jobs. Direct jobs include those in manufacturing, engineering and advanced automation systems. Indirect jobs are those in the cleaning, maintenance, mining and transportation sectors.
Rabiu said: “BUA is delighted to partner with IFC and other institutions in securing a $500 million facility to develop energy-efficient cement production capacity and strengthen our equipment and logistics capabilities in northern Nigeria. We have gone through the rigorous process with IFC, AfDB, AFC and DEG, which validates our responsible business practices.
“By focusing on greener fuels and enhancing our equipment and logistics platform, BUA Cement is building a foundation for sustainable infrastructure growth and a more inclusive society.
“Northern Nigeria is not impoverished; there are opportunities there to add value. The resources and manpower are there. It is a validation that our business practices are responsible.
“Nigeria and Africa are blessed with a lot of opportunities, we need to come together to harness the resources and add value to what we have and empower our people. We have over 30 per cent of raw materials in Africa, we need to harness them and add value.”
He said: “Nigeria used to import almost 25 million tonnes of cement 20 years ago and then there was a liberal policy put in place by the government, which is the backward integration programme. That has helped, today we are producing 11 million tonnes and by the end of the year, we are going to have about 18 million tonnes of cement yearly.
“We are self-sufficient in terms of cement production; we have Niger Republic, Burkina-Faso, which are about two to three hundred kilometres from our land and a huge advantage to us.”
IFC’s Managing Director, Makhtar Diop, said: “We are pleased to join with our partners to support BUA with an investment that will boost industrialisation, create jobs and deliver economic growth in northern Nigeria, a region with significant economic potential.”
The Chief Executive Officer & President of Africa Finance Corporation (AFC), Samaila Zubairu, said following an initial $200 million investment in BUA Group in 2021, the new investment will play another key role in this landmark manufacturing project and transform the construction sector in the country.
