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CBN FX Reforms Stopped Demands For Dollars — BUA Chairman Dr Abdul Samad Rabiu
Chairman of BUA Cement Plc, Dr Abdul Samad Rabiu, has stated that recent foreign exchange reforms by the Central Bank of Nigeria have removed the need for companies to seek FX through lobbying. Rabiu made these remarks on Monday in Abuja during a media briefing following BUA Cement Plc’s 9th Annual General Meeting.
He described the new FX policy as more open and driven by market dynamics, contrasting it with previous approaches which, according to him, led to artificial shortages and pushed businesses to seek special access to dollars.
“I was making a joke a few weeks ago that I’ve only seen the current CBN Governor maybe twice since his appointment. That’s because I don’t need him. Before now, I used to visit the CBN every two weeks to lobby for FX. That was the only way to survive,” Rabiu said.
He criticised the old FX regime where the official rate was far below the black market rate, saying it distorted the system and restricted access for businesses.
“The rate was N500 or N600 officially, but nobody could get it. On the street, it was closer to N1,000. It was an artificial rate,” he said.
The BUA chairman commended the current FX reforms for merging rates, saying, “Now, the rate you get is what everyone else gets. You go to the bank, you get FX at the market rate.”
Rabiu voiced confidence in a continued appreciation of the naira, predicting that the exchange rate could drop to around N1,200/$ in the near future, down from nearly N2,000 earlier in the year.
He mentioned that the strengthening of the naira was already reducing the prices of goods, including cement and food items.
Speaking on the issue of cement pricing, Rabiu said the rise in production costs, especially due to FX fluctuations, energy costs, and the need for imported machinery, were responsible for recent price increases. Nevertheless, he noted that BUA had tried to maintain stable prices.
Rabiu explained that BUA Cement’s revenue grew to N877bn in 2024 from N460bn in 2023, even though the company recorded FX losses of N93.9bn.
He stated that the company’s profit before tax rose by 48.2 per cent to N99.63bn, and its return on average capital employed increased to 15 per cent from 10 per cent the previous year.
The company’s earnings per share climbed to N2.18 in 2024 from N2.05 in 2023, marking a 6.3 per cent rise. “This performance was driven by a combination of increased dispatch volumes and prudent pricing strategies, even as the Company absorbed rising input costs.
“Cash generation grew significantly, enabling increased capital expenditure financing and supporting our strategic efforts to reduce exposure to foreign currency obligations. This was achieved by paying down import finance facilities and aligning accrued interest payments with available cash flows,” he said.
Rabiu added that BUA Cement earned N81bn in profit after tax in the first quarter of 2025, surpassing its full-year profit for 2024. He projected that total earnings for 2025 could reach N250bn, attributing this growth to improved efficiency, reduced FX losses, and higher production capacity.
He said the company had no immediate expansion plans beyond its current capacity of 20 million metric tonnes, after recently launching two new cement lines in Sokoto and Edo States.
Rabiu also restated BUA’s focus on shareholder value, announcing a dividend of N2.05 per share, representing a payout ratio of 94 per cent.
The Managing Director and CEO of BUA Cement, Yusuf Binji, also spoke, highlighting the company’s strong financial results, agility, and strategic focus on growth despite a dynamic economic environment.
Binji said the company’s biggest cost—energy—was being tackled through the construction of a 700-tonnes-per-day LNG regasification plant, which would ensure supply and cut costs. He added that BUA Cement had renegotiated its service contracts to favour local content as a way to reduce FX risks and lower operational expenses.
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