BUA Group Mulls Listing on Nigerian Stock Exchange
By Dipo Olowookere
Founder of BUA Group, Mr Abdul Samad Rabiu, has disclosed that he plans to list his company on the floor of the Nigerian Stock Exchange (NSE).
Mr Rabiu made this known while speaking with Channels Television on the sidelines of the just-concluded Africa CEO Forum held in Ivory Coast.
In the interview, which was monitored in Lagos by Business Post, the Kano-born businessman said he would list the cement segment of BUA Group on the stock exchange as soon as the necessary parameters are met.
According to him, “We are definitely going to list the cement business [on the stock exchange] because I think we should also give others the opportunity to participate [in the business].”
The tough rival of Dangote Group emphasised that, “If you have such a big business (as BUA Group) and it is doing very well, you should give others the opportunity to be part of it.”
According to him, “That way, you can unlock some of the capital you have invested [in the business] and do other things.”
When asked how soon he would consider making the listing a reality, Mr Rabiu said, “We don’t know yet, but we are still looking into it.”
On the gains of the African CEO Forum, the business mogul, who is having a dispute with Dangote Cement over ownership of a cement mine in Edo State, stated that, “I have actually interacted with a lot of people and one of the things I have heard is that there must be synergy among African CEOs as well as governments. That way, we can add more value to what we do.”
He noted that, “If you look at most of the countries in Africa, there are many resources, but untapped.
“Look at South Africa, which produces about 100 million tonnes of iron ore, they produce steel, but a lot of the iron ore is exported.
“One of the mines in South Africa owned by an Anglo American, Kumba Mine, produces about 45 million tonnes of iron ore and if you look at iron ore, it is something that you need to produce steadily and Nigeria is in a unique situation where it has iron ore, gas, coal and other. Not many countries in this world have these resources, yet we do not produce steel.
“We need to work with the government as well as the private sector to see how we can tap into these opportunities.
“If for example we import $3 to $4 billion worth of steel every year, yet we do not have a fully integrated steel plant, what does that tell you? That there is a form of disconnect.”
When asked if he plans to invest in the solid mineral sector, Mr Rabiu said, “The mining sector is a very important sector and we are interested in it. That was why we divested in our flour milling and pasta business simply because it requires importation of raw materials.
“I will rather be in a business that allows me source for raw materials locally than getting raw materials from outside the country.
“Look at where we are today in the cement industry, where we have the raw materials locally. What is happening in the cement industry today in Nigeria should be replicated in many sectors.”