The Founder and Executive Chairman of BUA Group, Abdul Samad Rabiu, has called on Nigeria to reduce its dependence on imported finished goods by expanding domestic manufacturing, processing raw materials locally and strengthening its export capacity.
Rabiu made the call on Monday while delivering a keynote address at the 32nd Nigerian Economic Summit in Abuja, where he argued that Nigeria could not achieve sustainable economic prosperity by remaining predominantly a consumer of foreign products.
“Nigeria must not remain simply a supplier of raw materials or a market for finished goods. We must become a nation that processes, manufactures, and exports,” he said.
The industrialist identified Nigeria’s cement industry as evidence that domestic investment and supportive industrial policies could transform an import-dependent sector into an export-oriented industry.
“Not so long ago, Nigeria was importing almost 80 per cent of the cement that we were consuming. Today, through deliberate policies and major private sector investments, Nigeria has become self-sufficient in cement production and is now an exporter,” he stated.
Rabiu said the transformation resulted from investments in processing locally available limestone, citing BUA’s cement operations in Sokoto and Edo states.
He urged the government and private sector to replicate the experience in agriculture, food processing and other manufacturing industries.
“Nigeria must increasingly grow what it consumes, manufacture what it needs, and export more of what it produces,” he added.
Highlighting BUA’s expansion plans, Rabiu said its two listed subsidiaries, BUA Foods and BUA Cement, have a combined market capitalisation of more than $17bn.
He said BUA Foods was valued at over $10bn, while BUA Cement had a market capitalisation of about $7bn.
He also announced ongoing investments in flour milling, pasta, noodles, edible oils, rice milling and feed mills, with completion expected in 2027.
“These projects are expected to be completed, insha’Allah, by next year, doubling our production capacity,” he said.
Rabiu further highlighted the group’s integrated sugar project in Lafiagi, Kwara State, involving sugarcane cultivation, sugar refining, ethanol production and electricity generation.
On economic reforms, he acknowledged that the removal of petrol subsidy, foreign exchange liberalisation and other government policies had imposed significant costs on households and businesses.
However, he maintained that improvements in foreign exchange availability had reduced manufacturers’ dependence on direct allocations from the Central Bank of Nigeria.
“As an industrialist, I would rather operate in a transparent market where I can plan than in a system where the official rate appears attractive but foreign exchange is unavailable,” he said.
He recalled previously visiting the CBN regularly to seek foreign exchange allocations, describing the current market arrangement as more predictable.
Despite the improvements, Rabiu identified expensive borrowing, inadequate infrastructure and policy uncertainty as major obstacles to industrial expansion.
“You cannot build a strong industrial economy primarily with expensive short-term financing,” he warned.
He explained that manufacturing investments often required between 10 and 20 years to generate their full returns, making affordable long-term capital essential.
Rabiu consequently called for greater mobilisation of pension funds, insurance capital and other institutional investments into productive enterprises.
He also advocated the emergence of 100 additional major Nigerian industrial companies to expand employment, strengthen local supply chains and increase exports.
The BUA chairman urged Nigeria to take advantage of the African Continental Free Trade Area through improved transport infrastructure, efficient ports, payment systems and easier cross-border movement.
He proposed a new economic accord anchored on policy stability, productive investment, human capital development, long-term financing and shared prosperity.
“Because the true measure of economic success is not simply whether our economy grows. It is whether that growth changes the lives of Nigerians,” Rabiu said.
The company’s push to expand domestic food production also follows the recent introduction of Bakers Pride Flour by BUA Foods at a trade launch held in Kano, as part of efforts to broaden its product portfolio and serve Nigerian bakers.
The company said the new flour brand was developed for different baking applications, including gurasa, a popular Northern Nigerian flatbread, and conventional bread, with an emphasis on consistent quality and commercial value.
Speaking at the launch, the Managing Director of BUA Foods, Ayodele Abioye, said the product was designed to support bakers’ productivity and business growth, while the General Manager of Brand and Corporate Communications, Adewunmi Desalu, stressed the need to balance product quality with the commercial realities facing bakers.
The General Manager of Sales, Alim Liman, also highlighted the importance of distributors, wholesalers and retailers in ensuring market availability, saying the company would strengthen partnerships across its distribution network to support the new product’s expansion.
Source: punchng.com
FOLLOW US ON:
