In a significant move to bolster Nigeria's construction sector, BUA Cement Plc has finalized a major $240 million agreement with China-based engineering firm CBMI Construction Co., Ltd. The deal focuses on expanding production capacity at BUA's strategic Sokoto plant, which serves as the sole cement manufacturing facility in Nigeria's North-West region.
Expanding Production Capacity in Northern Nigeria
The newly signed agreement will facilitate the construction of a state-of-the-art cement production line at BUA's Sokoto facility. This expansion project, designated as cement line six, is projected to add an impressive 3 million metric tons to the plant's annual output. Upon completion, this development will elevate BUA Cement's total installed production capacity to 20 million metric tons per year, marking a substantial increase in the company's manufacturing capabilities.
Strategic Importance of the Sokoto Plant
BUA Cement has emphasized the critical strategic value of its Sokoto plant, which remains the only cement production facility serving Nigeria's expansive North-West zone. This geographical advantage positions the plant as a vital resource for infrastructure development across Northern Nigeria. The addition of the new production line is expected to address persistent supply constraints in the region while simultaneously reducing transportation costs for construction materials.
The expansion will particularly benefit infrastructure developers, contractors, and small construction businesses who have historically faced challenges accessing adequate cement supplies in Northern Nigeria. By improving regional availability, BUA Cement aims to stimulate construction activity and support economic development across multiple states.
Powering the Expansion with Cleaner Energy
Energy requirements for the expanded Sokoto operations will be supported by BUA Group's innovative 700-ton-per-day mini liquefied natural gas (LNG) plant currently under construction in Kogi State. Scheduled for completion later this year, this LNG facility is designed to provide cleaner and more reliable energy to both the new Sokoto production line and existing manufacturing operations.
The transition to LNG-powered operations represents a dual benefit—improving production efficiency while simultaneously reducing environmental emissions. This approach aligns with global trends toward more sustainable industrial practices while ensuring consistent energy supply for manufacturing processes.
Longstanding Partnership and Economic Alignment
The $240 million investment strengthens a partnership between BUA Cement and CBMI that spans more than 15 years. During this period, CBMI has delivered cement production lines with a combined capacity of approximately 14 million metric tons across BUA's facilities in both Obu, Edo State, and Sokoto. This track record of successful collaboration provides confidence in the current expansion project's execution.
Abdul Samad Rabiu, founder and chief executive of BUA Group, highlighted how the expansion aligns with recent economic reforms introduced by President Bola Tinubu's administration. Rabiu noted that these policy changes have improved the ease of establishing and operating manufacturing facilities while stimulating demand for infrastructure and construction projects across Nigeria.
"The current policy environment offers stronger incentives for long-term industrial investments," Rabiu stated. "This positions BUA Cement to support national development through increased output, job creation, and the supply of materials critical to housing and infrastructure delivery."
Broader Economic Implications
Industry analysts anticipate positive ripple effects from the Sokoto expansion across Nigeria's construction value chain. The increased cement production is expected to benefit multiple stakeholders including:
- Transportation companies moving materials across regions
- Distributors and retailers of construction materials
- Artisans and skilled workers in the building trades
- Small and medium-sized contractors, particularly in Northern Nigeria
With the new Sokoto production line and supporting energy infrastructure, BUA Cement is positioned to play an increasingly significant role in meeting Nigeria's growing domestic cement demand. The expansion contributes not only to industrial growth but also to regional economic development, particularly in areas where construction material availability has historically been limited.
The timing of this expansion coincides with BUA Group's rising prominence in Nigeria's business landscape. Recent reports indicate that Abdul Samad Rabiu has emerged as Nigeria's second richest person, surpassing Mike Adenuga of Globacom in Forbes' billionaire rankings. This financial strength provides additional resources to support ambitious industrial projects like the Sokoto expansion.
As Nigeria continues to prioritize infrastructure development and housing construction, BUA Cement's capacity expansion represents a strategic investment in the nation's economic future. The $240 million project demonstrates confidence in Nigeria's construction sector while addressing practical supply challenges that have hindered development in Northern regions.
