BUA Foods Expands Manufacturing Capacity, Approves N504bn Shareholder Payout

BUA Foods Plc has unveiled a major expansion programme aimed at increasing local food production, broadening its product portfolio and strengthening its position in Nigeria’s food manufacturing industry, as shareholders approved a N504 billion dividend payout at the company’s fifth Annual General Meeting.

The company said the next phase of growth would include a substantial increase in wheat milling capacity, the planned launch of a noodles business, the completion of its edible oils operations and continued investments across its integrated manufacturing value chain.

The expansion plans were announced at the company’s Annual General Meeting held in Abuja, where shareholders endorsed all resolutions presented by the board, including the audited financial statements for the year ended December 31, 2025, and a final dividend of N28 per ordinary share, amounting to N504 billion.

The strategic investments come after another year of strong financial performance by the company. BUA Foods reported revenue of N1.77 trillion in 2025, representing a 16 per cent increase from the previous year, while profit after tax rose by 95 per cent to N518.4 billion.

According to the company, the investments are expected to deepen domestic food production, strengthen supply chain resilience, reduce dependence on imported food products and support Nigeria’s long-term food security objectives.

The company said its ongoing expansion programme is designed to meet rising consumer demand while supporting industrial development and economic growth.

The initiative includes increasing wheat milling capacity to strengthen flour production, introducing noodles into its product portfolio and scaling operations within its edible oils business.

BUA Foods said the investments would improve the availability of essential food products, broaden consumer choice and create additional value across its manufacturing ecosystem.

The company added that expanding local production capacity would help strengthen Nigeria’s food supply chain and reduce vulnerabilities associated with import dependence.

At the meeting, shareholders approved a final dividend of N28 per ordinary share, translating to a total payout of N504 billion.

The approval reflects the company’s strong earnings performance and commitment to delivering value to investors despite prevailing economic challenges.

Shareholders also approved the re-election of retiring directors, the appointment of members of the audit committee and other statutory resolutions presented by the board.

Speaking at the meeting, Chairman of BUA Foods, Abdul Samad Rabiu, said the company’s growth ambitions extend beyond increasing market share and are aimed at supporting Nigeria’s broader industrial development.

“Our ambition has never been to become bigger simply for the sake of size. We are building scale because Nigeria needs strong indigenous companies capable of competing at the highest level, investing for the long term and creating lasting value,” he said.

Rabiu said the company’s expansion projects would position BUA Foods as the largest player in its sector while maintaining a focus on efficiency, transparency and disciplined management.

“By strengthening local manufacturing, expanding capacity and introducing new product categories, we are investing not only in our business but in Nigeria’s industrial future,” he added.

He noted that stronger indigenous manufacturers would promote competition, attract investment, improve efficiency and ultimately benefit consumers, investors and the wider economy.

A key element of the company’s expansion strategy is its planned entry into Nigeria’s noodles market, one of the country’s fastest-growing food segments.

Combined with the expansion of wheat milling operations and the completion of its edible oils business, the move is expected to increase domestic food production and support national food security goals.

Industry analysts say sustained investments by large-scale food manufacturers are critical to reducing food import dependence, improving value addition and strengthening Nigeria’s agro-industrial base.

BUA Foods said it remains committed to responsible corporate governance, disciplined capital allocation and sustainable value creation as it pursues its long-term growth objectives.

The company added that its strategy is designed to position it as one of Africa’s leading integrated food businesses, leveraging scale, innovation and operational excellence to deliver long-term prosperity for shareholders and support economic development across the continent.