Abdul Samad Rabiu, chairman of BUA Cement, says reforms to Nigeria’s foreign exchange market have reduced the need for businesses to lobby the central bank for access to dollars, improving transparency in the allocation of foreign currency.
Rabiu spoke in Abuja during a media briefing following the company’s ninth annual general meeting, according to Economic Confidential.
He contrasted the current system with the previous framework, under which the official exchange rate often differed sharply from the parallel-market rate, while businesses struggled to obtain foreign currency through official channels.
“I used to visit the CBN every two weeks to lobby for FX. That was the only way to survive,” Rabiu said, referring to the difficulties businesses faced under the former system.
He said the official exchange rate had stood at about 500 to 600 naira per dollar, while the parallel-market rate was closer to 1,000 naira, creating distortions and unequal access to foreign currency.
Under the current framework, businesses can obtain foreign exchange through commercial banks at market-determined rates, Rabiu said, adding that the changes had created a more level playing field.
He forecast further appreciation of the naira, predicting that it could strengthen to around 1,200 naira per dollar in the coming months. The projection was his personal assessment, not an official forecast by the Central Bank of Nigeria.
Rabiu also said the naira’s performance was helping to ease prices of some commodities, including cement and food. However, exchange-rate movements are only one factor affecting consumer prices, which also depend on production, energy, transport and distribution costs.
Addressing cement prices, he said foreign-exchange volatility, energy expenses and imported equipment had contributed to higher production costs. He added that BUA Cement had sought to limit the impact of those pressures on customers.
The company reported revenue of 877 billion naira in 2024, up from 460 billion naira in 2023, despite foreign-exchange losses of 93.9 billion naira, according to figures cited in the report.
Profit before tax rose 48.2% to 99.63 billion naira, while earnings per share increased to 2.18 naira from 2.05 naira in the previous year.
Rabiu said BUA Cement recorded a profit after tax of 81 billion naira in the first quarter of 2025, exceeding its earnings for the whole of 2024. He projected that full-year profit could reach 250 billion naira, citing improved operational efficiency, lower foreign-exchange losses and increased production capacity.
The company had no immediate plans to expand beyond its installed annual production capacity of 20 million metric tonnes, Rabiu said, following the commissioning of additional production lines in Sokoto and Edo states.
He also reaffirmed the company’s commitment to shareholder returns, citing a proposed dividend of 2.05 naira per share.
Yusuf Binji, managing director and chief executive of BUA Cement, said the company was working to manage energy costs through the development of a liquefied natural gas regasification plant with a capacity of 700 tonnes per day.
Binji also said the company had renegotiated service contracts to increase local participation and reduce its exposure to foreign-currency costs.
Nigeria’s foreign-exchange reforms have sought to improve market liquidity and transparency by reducing distortions associated with multiple exchange rates. Their wider economic effects, including the impact on inflation, business costs and household purchasing power, remain important measures of their effectiveness.
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