Shareholders laud BUA’s corporate governance under Rabiu

Shareholders have praised the corporate governance style of Abdul Samad Rabiu, Chairman of BUA Group, describing his leadership approach as a benchmark for responsible and inclusive business practices in Nigeria. The commendation came with a call on other corporate leaders to emulate Rabiu’s model, particularly his focus on employee welfare, shareholder value, and broader societal […]

Shareholders have praised the corporate governance style of Abdul Samad Rabiu, Chairman of BUA Group, describing his leadership approach as a benchmark for responsible and inclusive business practices in Nigeria.

The commendation came with a call on other corporate leaders to emulate Rabiu’s model, particularly his focus on employee welfare, shareholder value, and broader societal impact. According to investors, Rabiu has demonstrated a consistent ability to convert private enterprise success into tangible public benefits.

Shareholders highlighted his strategy of expanding public ownership through listed entities, alongside robust employee compensation structures and customer-focused policies. They noted that his approach reflects a balance between profitability and social responsibility.

Two of the group’s flagship companies—BUA Cement Plc and BUA Foods Plc—rank among the largest firms on the Nigerian Exchange, with a combined market value estimated at about N26 trillion. While BUA Foods stands as the country’s largest publicly quoted food manufacturing company, BUA Cement remains the second-largest cement producer in Nigeria.

In a statement signed by Faruk Umar, President of the Association for the Advancement of Rights of Nigerian Shareholders (AARNS), shareholders described the group’s recent employee reward initiative as unprecedented.

The programme, implemented in December 2025, saw the distribution of approximately N30 billion ($21 million) to 510 long-serving employees across all levels. Five employees received N1 billion each, instantly becoming billionaires, while others were awarded up to N500 million. Additional bonuses ranged down to N5 million depending on tenure and role. This followed a 50 per cent salary increase implemented by the group in 2024.

“We think corporate leaders have an excellent example to emulate in Alhaji Abdul Samad Rabiu,” Umar said. “The way he runs his companies, treats employees, engages customers, and relates with shareholders is highly commendable. When business success is seen as a blessing to the wider community, the entire country benefits.”

Umar further noted that BUA Group’s investments in food production and cement manufacturing are central to Nigeria’s economic development. He added that the group’s ongoing refinery project would contribute significantly to the country’s drive for energy independence.

He also commended the group’s adherence to strong corporate governance standards, emphasizing transparency, timely disclosures, and sustainable growth strategies. According to him, indicators such as financial performance, dividend consistency, workforce management, and diversification all point to a well-run enterprise.

“There are clear metrics for evaluating a good company—corporate disclosures, staff welfare, financial results, growth strategy, and public reputation. In all these areas, BUA Group stands out,” Umar stated.

Shareholders also credited the company with helping to moderate prices of essential commodities such as sugar and cement through increased production and strategic pricing, thereby easing inflationary pressures.

The commendation follows the release of the 2025 audited financial results of the group’s listed companies, which showed strong growth across key performance indicators.

BUA Foods Plc reported revenue of N1.77 trillion in 2025, up from N1.53 trillion in 2024. Profit before tax rose significantly to N521.53 billion from N284.32 billion, while net profit nearly doubled to N518.39 billion. The company also declared a final dividend of N28 per share, representing a 115.4 per cent increase from the previous year.

Similarly, BUA Cement Plc posted revenue of N1.18 trillion in 2025 compared to N876.47 billion in 2024. Profit before tax surged to N465.28 billion from N99.63 billion, while profit after tax rose sharply to N356.04 billion from N73.91 billion. The company announced a dividend of N10 per share, up by 387.8 per cent year-on-year.