(Ecofin Agency) – After signing a $500 million agreement with the IFC, BIL of Nigerian billionaire Abdul Samad Rabiu, receives support from Afreximbank to support its expansion projects in a market of more than 220 million consumers and even beyond Nigerian borders.
The African Export-Import Bank (Afreximbank) has approved a $200 million financing facility for BUA Industries Limited (BIL), the conglomerate of billionaire Abdul Samad Rabiu (pictured), currently ranked 3e fortune of Nigeria and in the top 5 of African fortunes, according to Forbes. The first payment of $150 million, released on October 16, supports BUA’s industrial expansion projects and the strengthening of its production capacities in strategic sectors.
Among the heavyweights of the Nigerian economy, BUA Industries intends to exploit this new liquidity to increase its production in key sectors such as cement, sugar, port logistics and energy. The company is not only targeting the Nigerian market, but is also positioning itself for exports, with the aim of reducing the country’s dependence on imports and diversifying its own outlets.
Thanks to this funding, the group will “increase its investments with a view to strengthening its industrial capacity and meeting regional demand. »said Alhaji Abdul Samad Rabiu, chairman of the group. He emphasizes that this partnership with Afreximbank is essential to support sustainable growth, with a view to strengthening Nigeria’s industrial autonomy while creating jobs and consolidating the country’s economic resilience. A few months earlier, it signed a $500 million deal with the International Finance Corporation (IFC) for its cement branch.
BUA Industries, one of the most influential conglomerates in Nigeria, has significant market shares in strategic sectors such as cement, agribusiness and energy. Its subsidiary BUA Cement, the second national producer, has a production capacity of 11 million tonnes per year and plans to add new production lines in Sokoto State, with the expected creation of 12,000 jobs. At the same time, BUA Foods, its agri-food branch, is a major player in the production of sugar, flour, pasta, rice and edible oils.
In September 2024, the company announced an increase in its pasta production capacity by 400,000 tonnes per year, which is expected to bring its total capacity to 900,000 tonnes annually. As for his presence in the energy sector, Mr. Rabiu is working – like his compatriot Dangote, also from Kano in the north of the country – on a 200,000 barrels per day refinery, a project in partnership with the French company Axens, to ensure Nigeria’s self-sufficiency.
“We look forward to this partnership which promises to have a significant impact in terms of job creation, import substitution and export diversification, which will boost Nigeria’s gross domestic product (GDP)”said Kanayo Awani, executive vice president of Afreximbank, in charge of intra-African trade and export development.
Fiacre E. Kakpo
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