Dipo Olowookere
By Dipo Olowookere
Chairman of BUA Cement Plc, Mr Abdul Samad Rabiu, has disclosed that the volume of cement produced in Nigeria at the moment cannot meet the demands of local consumers.
The businessman made this disclosure at the Annual General Meeting (AGM) of the company for the period ended December 31, 2020, held in Abuja on Thursday.
In view of this supply shortfall, the BUA Cement chair is advocating more investments in the sector to bridge the demand gap.
According to him, there is an urgent need to meet the ever-increasing national demand for cement, which is rising at a rate of over 3 million metric tonnes per annum.
He noted that if new investments are allowed in the cement sector, more cement plants would be developed in the country. He said BUA Cement was constructing a 3 million metric tonne factory in Sokoto State and should commence operations by the end of 2021.
BUA Cement is the second-largest cement company in the country and the largest producer in North-West, South-South, and South-East regions. The cement maker operates strategically from Okpella, Edo State and Kalambaina, Sokoto State.
In the 2020 accounting year, the company recorded a turnover of N204 billion and declared a profit after tax of N72.3 billion, with N70 billion paid as dividend, amounting to N2.067 per ordinary share.
At the AGM yesterday, shareholders applauded the decision of the board to reward them with the dividend, noting that they were also impressed with the performance in the period under review.
Mr Rabiu was also full of praises for the Yusuf Binji led management, staff, and customers of the company for ensuring that BUA Cement remained the cement of choice for quality in Nigeria.
In his remarks at the gathering, Mr Binji, who is the Managing Director of BUA Cement Plc, reassured that the organisation was committed to remaining a value-driven, oriented company that prioritises excellence and product quality.
He also added that the company was well-poised to sustain current profitability despite the very competitive landscape.
“Our value proposition, in terms of product and service support offerings has positioned BUA Cement as a market leader.
“In addition, we continue to prioritise innovation and continuous improvement, thereby ensuring the continued fit of our products to ever-changing customer demands and needs.
“We are also investing in the latest plant designs which not only drive efficiency but translate into value addition to our customer through the cost savings derived,” Mr Binji said.
