BUA Foods Plc is embarking on its most ambitious expansion drive since its listing on the Nigerian Exchange, doubling its wheat milling capacity to more than two million metric tonnes annually and broadening its footprint into new food categories as it positions itself to become Nigeria’s largest integrated food manufacturing company.
The expansion, unveiled at the company’s fifth Annual General Meeting (AGM) in Abuja, underscores the confidence of one of Nigeria’s biggest consumer goods manufacturers in the long-term growth prospects of the country’s food industry, despite persistent economic headwinds.
Beyond expanding production capacity, the investment programme signals a development aimed at strengthening domestic food manufacturing, improving food security and deepening local value addition at a time when Nigeria continues to face rising food demand, supply chain constraints and import dependence.
The company’s latest growth blueprint comes after another record financial year that saw revenue rise to N1.77 trillion, representing a 16 per cent increase over the previous year, while profit after tax surged by 95 per cent to N518.4 billion, highlighting strong operational performance despite a challenging macroeconomic environment.
The Board also proposed a final dividend of N28 per ordinary share, translating to a total payout of N504 billion, one of the largest shareholder returns in Nigeria’s consumer goods sector.
Shareholders approved all resolutions presented at the AGM, including the audited financial statements for the year ended December 31, 2025, the dividend payment, the re-election of retiring directors and other statutory resolutions.
BUA Foods’ new investment strategy is considered a significant expansion of its wheat milling operations, a move expected to reinforce the company’s position in Nigeria’s flour market while supporting the country’s growing demand for staple food products.
Speaking during the AGM, Abdul Samad Rabiu, chairman of BUA Group, said the company would increase its annual wheat milling capacity from just over one million metric tonnes to more than two million metric tonnes, making it the largest milling operation in Nigeria. The expansion, he said, goes beyond increasing market share.
“Our ambition has never been to become bigger simply for the sake of size. We are building scale because Nigeria needs strong indigenous companies capable of competing at the highest level, investing for the long term and creating lasting value,” Rabiu told shareholders.
He noted that while the expansion would make BUA Foods the largest player in its sector, the company’s competitive advantage would continue to rest on operational discipline rather than size alone.
“Efficiency, transparency and disciplined management are the principles that built this company when we were the smallest major player, and they are the same principles that will guide us as we become the largest,” he added.
According to Rabiu, expanding local manufacturing capacity represents an investment not only in corporate growth but also in Nigeria’s industrial future.
New businesses to diversify earnings
Beyond wheat milling, BUA Foods is accelerating diversification across several food segments as part of a strategy to capture rising consumer demand for affordable staple foods.
Among the major initiatives is the company’s planned entry into Nigeria’s instant noodles market, one of the country’s fastest-growing packaged food categories, driven by rapid urbanisation, population growth and changing consumption patterns.
Rabiu described noodles as an important segment because of their affordability and accessibility to millions of consumers.
“We are going into new sectors such as instant noodles because we see it as a very important sector because of its affordability and its accessibility,” he stated.
The company is also substantially increasing investment in edible oils.
According to Rabiu, BUA Foods plans to triple the capacity of its edible oil business while constructing a brand-new oil mill in Port Harcourt to support future production.
The combination of wheat milling, edible oils and noodles is expected to broaden the company’s portfolio of staple food products while reducing earnings concentration around existing product lines.
Industry analysts view the strategy as positioning BUA Foods to benefit from Nigeria’s expanding consumer market, where demand for affordable packaged foods continues to grow despite pressure on household incomes.
Investing across the agricultural value chain
The expansion strategy extends beyond manufacturing into primary agricultural production.
Speaking after the AGM, Kabiru Rabiu, non-executive director of BUA Foods, disclosed that the company is making substantial investments in sugar production infrastructure.
According to him, the company is developing a 20,000-hectare sugarcane plantation in Lafiagi alongside approximately 220 kilometres of internal road infrastructure and extensive irrigation facilities.
The investments form part of BUA’s long-term backward integration programme aimed at strengthening local raw material sourcing while reducing dependence on imported agricultural inputs.
The projects are expected to improve productivity across the sugar value chain while supporting employment and rural economic development.
Growth balanced with shareholder returns
Despite committing significant resources to expansion, the company continues to reward investors through generous dividend payments.
Commenting on the approved N28 dividend per share, Kabiru Rabiu said the payout reflects the company’s philosophy that shareholders should directly benefit from sustained business growth.
“Our growth has been almost entirely organic and we feel that if the company makes money, the shareholders also should benefit from that growth and profitability,” he said.
He noted that the company’s expansion has largely been financed through internally generated growth supported by the BUA Group.
That approach, he explained, has enabled the company to maintain a balance between reinvesting for future expansion and delivering consistent returns to shareholders.
Pursuing affordability alongside profitability
While many manufacturers have struggled with inflation, rising production costs and currency volatility over the past two years, BUA Foods says one of its priorities remains improving food affordability for Nigerian consumers.
According to Kabiru Rabiu, support from the federal government, combined with the strategic direction of the company’s chairman, has enabled the business to pursue greater price stability across several product categories.
“We believe we need to extend some price stability, meaning that we need to see the price of food continue to come down for Nigerian consumers,” he said.
He explained that rather than relying on higher prices to improve profitability, the company has focused on increasing production volumes and improving capacity utilisation.
“We’ve expanded our capacity utilisation, meaning that even though prices have come down, we’ve tried to produce more so that more people can afford our products,” he stated further.
The strategy reflects growing recognition among large food manufacturers that expanding production can help offset lower margins through higher sales volumes while simultaneously supporting national food security objectives.
Operational efficiency drives record performance
BUA Foods’ latest financial results showcase the effectiveness of that operating model.
Revenue climbed to N1.77 trillion during the 2025 financial year, while profit after tax almost doubled to N518.4 billion, representing one of the strongest earnings performances in Nigeria’s consumer goods industry.
The company attributed the growth to disciplined execution, improved operational efficiency, strong consumer demand and a resilient business model capable of navigating a volatile operating environment.
Managing Director Ayodele Musibau Abioye said future growth would continue to be driven by strategic investments across production, distribution and supply chain management.
“Our focus remains on driving sustainable revenue growth through capacity expansion, market penetration and improved end-to-end supply chain.
“The strong demand across our product categories reinforces our strategic direction, and we are well-positioned to build on this momentum,” he said.
