Rabiu Backs Stronger Naira, Says FX Reforms Are Paying Off

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Chairman of BUA Cement Plc, Abdul Samad Rabiu, has expressed strong support for the Central Bank of Nigeria’s (CBN) ongoing foreign exchange (FX) reforms, stating that the policy shift has brought transparency and eliminated the need for lobbying to access foreign exchange.

Speaking during a media briefing after BUA Cement’s 9th Annual General Meeting in Abuja, Rabiu reflected on the drastic changes in Nigeria’s FX regime, contrasting the present system with the past.

“I used to visit the CBN every two weeks just to lobby for FX. That was the only way to survive,” he said. “Now, I’ve seen the CBN Governor maybe twice since his appointment, because I no longer need to beg for forex.”

He criticized the previous system for creating an artificial scarcity of foreign currency, which forced businesses to depend on personal connections or turn to the black market. He noted that while the official rate hovered between N500 and N600, real access was limited, with black market rates reaching nearly N1,000 per dollar.

“The rate was artificial. Nobody could get it,” he said. “Today, what you see is what you get. It’s market-driven. You go to your bank and get forex at the same rate everyone else gets.”

Rabiu praised the current reforms for unifying the forex market and restoring confidence among investors and businesses. He predicted that the naira, which traded as high as N2,000/$ earlier in the year, could strengthen further to about N1,200/$ in the coming months.

Strong Financial Performance Despite Challenges

Despite significant foreign exchange losses amounting to N93.9 billion in 2024, BUA Cement recorded strong financial growth. Revenue rose from N460 billion in 2023 to N877 billion in 2024, while profit before tax jumped by 48.2% to N99.63 billion. The company’s return on average capital employed also improved from 10% to 15%.

Rabiu said the growth was driven by operational efficiency, strategic pricing, and increased dispatch volumes. He added that cash generation improved, enabling BUA Cement to reduce its exposure to foreign currency liabilities and invest in critical infrastructure.

In Q1 2025, BUA Cement recorded a profit after tax of N81 billion—already surpassing the entire profit of the previous year. Rabiu projected full-year 2025 earnings could reach N250 billion, citing increased production capacity, reduced forex losses, and improved efficiency.

Commitment to Growth and Local Content

Managing Director and CEO of BUA Cement, Yusuf Binji, said the company is investing in energy efficiency to reduce its biggest cost driver—power. He announced that BUA Cement is building a 700-tonne-per-day LNG regasification plant and has renegotiated service contracts to favor local providers, reducing exposure to forex fluctuations.

BUA Cement declared a dividend of N2.05 per share for 2024, representing a 94% payout ratio, in line with the company’s commitment to shareholder value.

Rabiu emphasized that the company remains focused on sustainable growth and has no immediate plans to expand its production capacity beyond the current 20 million metric tonnes per annum, following the recent commissioning of new cement lines in Sokoto and Edo States.

Looking Ahead with Optimism

Rabiu’s comments come amid broader discussions about Nigeria’s FX market and the need for continued reforms. He called on businesses and investors to remain confident in the economy, stating that the worst may be over.

“This is the time to invest in Nigeria, not the time to run away,” he said.

His remarks reflect growing optimism among stakeholders that the reforms being implemented by the CBN are starting to yield positive results, paving the way for a more stable naira and a stronger business environment.

@2025 The Ameh News: All Rights Reserved 


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