BUA Foods Plc has unveiled ambitious plans to significantly increase local food production and enhance the affordability of staple foods across Nigeria. This strategic move follows the recent approval by shareholders of a record N504bn dividend, paid at N28 per ordinary share, during the company’s fifth Annual General Meeting.
The company's next phase of growth is set to include expanding its flour milling and pasta production capacities. Additionally, BUA Foods will launch a new noodles business, complete its edible oils operations, and roll out an integrated feed mill. These initiatives are designed to position BUA Foods as Nigeria’s largest indigenous food manufacturing company by next year.
Speaking at the AGM in Abuja, Abdul Samad Rabiu, Chairman of BUA Foods Plc, emphasized that this expansion is driven by the need to strengthen Nigeria’s food manufacturing sector rather than merely increasing company size. He stated, “By next year, when our current projects are completed, BUA will become the largest player in our sector in Nigeria. We are not pursuing growth simply for the sake of becoming bigger. We are pursuing growth because scale matters in an industry like ours.”
Shareholders unanimously approved all resolutions presented at the meeting, including the N504bn dividend and the audited financial statements for the year ended December 31, 2025. The company reported a revenue of N1.77tn, marking a 16 per cent increase over 2024, while profit after tax surged by 95 per cent to N518.4bn, reflecting strong operational performance.
Rabiu highlighted BUA Foods' responsibility beyond shareholder returns, noting its role in supporting Nigeria’s industrial development. He explained that Nigeria’s food manufacturing industry remains highly concentrated, with four companies controlling almost 90 per cent of the market, and BUA is the only indigenous Nigerian company among the leading players.
The company's long-term objective is to build sufficient scale to compete effectively with every major player, fostering stronger indigenous participation in Nigeria’s industrial sector. The expansion projects are expected to significantly increase local production capacity, broaden consumer choice, strengthen supply chains, and reduce dependence on imported food products, thereby reinforcing Nigeria’s long-term food security ambitions.
In responses to journalists after the AGM, BUA Foods indicated that its investment priorities over the next 12 to 24 months would focus on doubling capacity across its wheat-based products portfolio. It also plans to expand into the noodles and edible oil segments to meet growing consumer demand, enhancing production capacity, improving product availability, deepening market penetration, and supporting sustainable revenue growth.
Despite persistent inflationary pressures, exchange rate volatility, and rising production costs, BUA Foods affirmed that affordability remains central to its operations. The company has continued to improve operational efficiency, optimise procurement, diversify energy sources, strengthen local sourcing, and leverage economies of scale to absorb cost pressures before considering adjustments to product prices.
Kabiru Rabiu, Non-Executive Director of BUA Foods, called for greater public and private sector investment in agriculture to strengthen food security and boost domestic food production. He urged governments to make key farm inputs, including fertilisers and herbicides, more affordable through subsidies to improve farmers’ productivity. Rabiu also advocated for increased investment in irrigation infrastructure to reduce dependence on seasonal rainfall and adopt year-round farming practices.
