Economy
Buhari commissions BUA Cement Sokoto 3mmt line 4 factory, production to hit 17mmt by 2023
Nigeria cement production received a boost as President Muhammadu Buhari commissioned the three million metric tonne per annum BUA Cement Sokoto Line 4 Factory. BUA Cement said it will soon complete the construction of two new plants of 3MMT each in its Sokoto and Okpella in Edo plants, thus raising its production capacity to 17MMT per annum by 2023, from its present 11 MMT achieved with the commissioning of the new Sokoto Line 4 factory. The commissioning which took place at the BUA Cement Sokoto Plant was witnessed by the Governor of Sokoto State, Aminu Tambuwal; Governor of Kano State, Abdullahi Ganduje; Governor of Kebbi State, Senator Abubakar Bagudu; the Governor of the Central Bank of Nigeria, Godwin Emefiele; Sultan of Sokoto, Muhammadu Sa’ad Abubakar and Emir of Kano, Alhaji Aminu Ado Bayero.
Speaking at the commissioning ceremony, President Buhari commended the BUA Group for it’s investment in the cement industry, which has made the company the largest employer of labour in the Northwest zone. “I am also told that the company is set to complete two more plants soon. Through these investments, BUA has shown without a shadow of a doubt that they believe in Nigeria and its potential. Today, BUA and other entrepreneurs have made Nigeria self-sufficient in cement and a net exporter of this strategic product. Through these investments, BUA Cement has created employment opportunities for our citizens. Today, BUA is the largest employer of labour in the North-West region.”
Speaking at the event, Chairman, BUA Group, Abdul Samad Rabiu, said that the company has in the past four years invested over $1 billion in the past four years. Stressing that BUA’s investment in the cement industry was made possible by the support and commitment of the President to the development of the Nigerian economy, Rabiu said, “We had a vision to support your government’s infrastructure agenda by ensuring we use locally available raw materials to produce cement here in Nigeria.”
Rabiu also appreciated the support of the CBN in making the new plant a reality, adding that the apex bank should continue to support industries like BUA Group that use locally sourced raw materials to add value because as mentioned earlier. These industries potentially save the country billions of dollars yearly and also ensure products are readily available across the length and breadth of the country”, he said.
Highlighting recent investment by BUA Cement and it’s production target for the future, Rabiu said: “In the past six years, we have completed four plants – two in Obu, Edo State and two in Sokoto (of which this Sokoto line 4 is the fourth) with BUA’s total production capacity now standing at 11million tonnes with the completion of this plant. “Next year, we intend to complete the construction of two new plants of 3 million metric tonnes each for which construction is ongoing – one in Edo and the other here in Sokoto. We expect these plants to be completed next year which will bring our total production capacity to 17million metric tonnes. We look forward to Your Excellency coming to commission them by the first quarter of 2023. BUA will continue to invest more in the cement industry until Nigeria is self-sufficient and cement is made available, accessible, and affordable for all Nigerians.”
Rabiu further explained the significance of BUA’s investment in cement manufacturing, saying: “There are many reasons one can attribute to the important nature of this plant. The attendant effect of these investments in new factories go beyond the community and the state. It extends to the region and the entire country. From a job creation and economic standpoint, the Sokoto plant continues to be the largest private sector employer of labour in the North-Western part of Nigeria. Also, by adding value to resources mined in Nigeria, Nigeria is being saved billions of U.S dollars in foreign exchange that would have been spent on importation, whilst also ensuring product availability. In fact, 95% of all the raw materials used in our cement manufacturing process are sourced locally.
“In addition to this, and our investment in social impact and Corporate Social Responsibility, CSR, programmes for the community and Sokoto state at all levels, we are also committed to environmental sustainability. We have diversified our energy sources by introducing greener alternatives – in this case, Liquified natural Gas, LNG – to power the kiln and 48 megawatts power plant. Our power plants are now running on 100% LNG leading to reduced carbon emissions. This is the first of its kind at any cement factory in Nigeria. What this means also, is that as soon as the AKK gas project comes on stream, we are ready to be one of the first off-takers to satisfy our energy needs. This will also encourage further industrialization within the region, open new industries and ensure greater development and prosperity for this region and the nation in general.”
Also speaking at the event, CBN Governor, Mr. Godwin Emefiele, commended BUA’s investment in the cement industry, saying “The BUA group’s investment in Sokoto and in other parts of Nigeria reflects their belief in our country, and in the immense opportunities available in the industrial sector, given the abundance of human and natural resources in Nigeria. He added that the investment of BUA and other cement manufacturers has helped to raise product production capacity of the industry by 100 per cent from 30 million tonnes in 2014 to about 60m tonnes in 2021. “Consequent upon this investment by local businessmen into the cement manufacturing sector, our nation has been able to conserve billions of millions of dollars, as no dollar from our external reserves have been spent on importing cement into the country in the last 6 years. Importantly also, these investments have saved and/or created several thousands of jobs across multiple sectors of the economy,” Emefiele added.
Speaking further, the CBN Governor appealed to manufacturers in the construction sector to take urgent action in bringing down the price of building materials in Nigeria. “Indeed, there have recently been calls by construction companies , urging cement and steel manufacturers to do something about the skyrocketing prices of these two essential items in the construction sector. This sector is one of the major sectors in the economy helping to create employment and boost growth in our country. We are aware that some of our Cement manufacturers are producing for both the domestic and exports market, but we urge them to pay more attention to satisfying the domestic needs so as to bring down prices.”
The Arab Africa Trade Bridges (AATB) Program and the Federal Republic of Nigeria formalized a partnership with the signing of the AATB Membership Agreement, officially welcoming Nigeria as the Program’s newest member country. The signing ceremony took place in Abuja on the sidelines of the 5th AATB Board of Governors Meeting, hosted by the Federal Government of Nigeria.
The Membership Agreement was signed by Eng. Adeeb Y. Al Aama, the CEO of the International Islamic Trade Finance Corporation (ITFC) and AATB Program Secretary General, and H.E. Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, Federal Republic of Nigeria. The Agreement will provide a strategic and operational framework to support Nigeria’s efforts in trade competitiveness, promote export diversification, strengthen priority value chains, and advance capacity-building efforts in line with national development priorities. Areas of collaboration will include trade promotion, agribusiness modernization, SME development, businessmen missions, trade facilitation, logistics efficiency, and digital trade readiness.
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, called for deeper trade collaboration between African and Arab nations, stressing the importance of value-added Agribusiness and industrial partnerships for regional growth. Speaking in Abuja at the Agribusiness Matchmaking Forum ahead of the AATB Board of Governors Meeting, the Minister said the shifting global economy makes it essential for African and Arab nations to rely more on regional cooperation, investment and shared markets.
He highlighted projections showing Arab-Africa trade could grow by more than US$37 billion in the next three years and urged partners to prioritize value addition rather than raw commodity exports. He noted that Nigeria’s growing industrial base and upcoming National Single Window reforms will support efficiency, investment and private-sector expansion.
“This is a moment to turn opportunity into action”, he said. “By working together, we can build stronger value chains, create jobs and support prosperity across our regions”, Edun emphasized. “As African and Arab nations embark on this journey of deeper trade collaboration, the potential for growth and development is vast. With a shared vision and commitment to value-added partnerships, we can unlock new opportunities, drive economic growth, and create a brighter future for our people.”
Speaking during the event, Eng. Adeeb Y. Al Aama, Chief Executive Officer of ITFC and Secretary General of the AATB Program, stated: “We are pleased to welcome Nigeria to be part of the AATB Program. Nigeria stands as one of Africa’s most dynamic and resilient economies in Africa, with a rapidly expanding private sector and strong potential across agribusiness, energy, manufacturing, and digital industries. Through this Membership Agreement, we look forward to collaborating closely with Nigerian institutions to strengthen value chains, expand regional market access, enhance trade finance and investment opportunities, and support the country’s development priorities.”
The signing of this Agreement underscores AATB’s continued engagement with African countries and its evolving portfolio of programs supporting trade and investment. In recent years, AATB has worked on initiatives across agribusiness, textiles, logistics, digital trade, export readiness under the AfCFTA framework, and other regional initiatives such as the Common African Agro-Parks (CAAPs) Programme.
With Nigeria’s accession, the AATB Program extends it’s presence in the region and adds a key partner working toward advancing trade-led development and fostering inclusive economic growth.
Federal Executive Council (FEC) has approved the 2026–2028 Medium-Term Expenditure Framework (MTEF), a key fiscal document that outlines Nigeria’s revenue expectations, macroeconomic assumptions, and spending priorities for the next three years. The approval followed Wednesday’s FEC meeting presided over by President Bola Tinubu at the State House, Abuja. The Minister of Budget and Economic Planning, Senator Atiku Bagudu made this known after the meeting.
The Minister said the Federal Government is projecting a total revenue inflow of N34.33 trillion in 2026, including N4.98 trillion expected from government-owned enterprises. Bagudu said that the projected revenue is N6.55 trillion lower than earlier estimates, adding that federal allocations are expected to drop by about N9.4 trillion, representing a 16% decline compared to the 2025 budget.
He said that statutory transfers are expected to amount to about N3 trillion within the same fiscal year. On macroeconomic assumptions, FEC adopted an oil production benchmark of 2.6 million barrels per day (mbpd) for 2026, although a more conservative 1.8 mbpd will be used for budgeting purposes. An oil price benchmark of $64 per barrel and an exchange rate of N1,512 per dollar were also approved.
Bagudu said the exchange rate assumption reflects projections tied to economic and political developments ahead of the 2027 general elections. He said the exchange rate assumption took into account the fiscal outlook ahead of the 2027 general elections.
The minister said that all the parameters were based on macroeconomic analysis by the Budget Office and other relevant agencies. Bagudu said FEC also reviewed comments from cabinet members before approving the Medium-Term Fiscal Expenditure Ceiling (MFTEC), which sets expenditure limits. Earlier, the Senate approved the external borrowing plan of $21.5 billion presented by President Tinubu for consideration The loans, according to the Senate, were part of the MTEF and Fiscal Strategy Paper (FSP) for the 2025 budget.
The spot rate on Nigerian Treasury bills has been increased by 146 basis points by the Central Bank of Nigeria (CBN) following tight subscription levels at the main auction on Wednesday. The spot rate on Treasury bills with one-year maturity has now surpassed Nigeria’s 16.05% inflation by 145 basis points following a recent decision to keep the policy rate at 27%.
The Apex Bank came to the primary market with N700 billion Treasury bills offer size across standard tenors, including 91-day, 182-day and 364 day maturities. Details from the auction results showed that demand settled slightly above the total offers as investors began to seek higher returns on naira assets despite disinflation.
Total subscription came in at about N775 billion versus N700 billion offers floated at the main auction. The results showed rising appetite for duration as investors parked about 90% of their bids on Nigerian Treasury bills with 364 days maturity. The CBN opened N100 billion worth of 91 days bills for subscription, but the offer received underwhelming bids totalling N44.17 billion.
The CBN allotted N42.80 billion for the short-term instrument at the spot rate of 15.30%, the same as the previous auction. Total demand for 182 days Nigerian Treasury bills settled at N33.38 billion as against N150 billion that the authority pushed out for subscription. The CBN raised N30.36 billion from 182 days bills allotted to investors at the spot rate of 15.50%, the same as the previous auction.
Investors staked N697.29 billion on N450 billion in 364-day Treasury bills that was offered for subscription. The CBN raised N636.46 billion from the longest tenor at the spot rate of 17.50%, up from 16.04% at the previous auction.
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