Abdul Samad Rabiu: Tinubu’s Reform Boosting Investor Confidence

• Seeks long-term capital to drive manufacturing, job creation, expand production capacity by 2027 

• As BUA Foods, Cement market capitalisation exceeds $17bn

Sunday Ehigiator

Founder and Executive Chairman of BUA Group, Abdul Samad Rabiu, has said President Bola Tinubu’s economic reforms are improving investor confidence in Nigeria.

Rabiu urged the government and private sector to create at least 100 more indigenous industrial enterprises to accelerate production, create jobs, and strengthen the economy.

The comments were contained in the keynote address he delivered at the 32nd Nigerian Economic Summit on Tuesday in Abuja.

He said reforms in foreign exchange management, fuel subsidy removal, taxation, banking, and infrastructure were beginning to address longstanding challenges facing businesses.

Speaking on the theme, “Growth That Works: Building a New Economic Accord for Nigeria,” Rabiu said the progress achieved through the reforms must translate into increased industrial production, employment opportunities, and improved living standards.

He commended the improved access to foreign exchange, recalling the difficulties businesses previously encountered in obtaining dollars for machinery, equipment, and raw materials, even when they had sufficient naira to finance their investments.

He stated, “Legitimate businesses can now access foreign exchange through the market at prevailing exchange rates, rather than depending on direct allocations from the Central Bank.”

Rabiu stated that the improved foreign exchange environment had brought greater predictability to investment planning, particularly for manufacturers undertaking large-scale projects.

He said since Olayemi Cardoso assumed office as Governor of the Central Bank of Nigeria (CBN), he had met him only a handful of times, unlike the previous situation when businesses frequently approached the apex bank to seek foreign exchange allocations.

While acknowledging the difficulties households and businesses faced, Rabiu urged the government to sustain the reforms and prioritise the expansion of Nigeria’s productive capacity.

“We must move from reform to results, from stabilisation to expansion, and from economic adjustment to shared prosperity,” he stated.

Highlighting BUA Group’s growth, Rabiu disclosed that BUA Foods and BUA Cement, both listed on the Nigerian Exchange, had a combined market capitalisation exceeding $17 billion.

He said BUA Foods was valued at more than $10 billion, while BUA Cement had a market capitalisation of approximately $7 billion.

The chairman also disclosed that BUA Group was investing in flour milling, pasta, noodles, edible oils, rice milling, and feed mills, with projects expected to be completed in 2027 and double production capacity across the relevant operations.

he stated, “These investments will strengthen Nigeria’s food security, create jobs, support farmers and suppliers, and expand our capacity to serve markets across Africa.

“Our ambition is not simply to become bigger. It is to make Nigeria stronger.”

Rabiu challenged Nigeria to develop at least 100 additional major indigenous industrial enterprises capable of investing across manufacturing, agriculture, mining, technology, and other productive sectors.

“But the question we must ask ourselves is not simply how BUA can continue to grow. It is how Nigeria can create another one hundred BUAs,” he said.

He identified access to affordable, long-term financing as one of the major constraints to industrial expansion, explaining that large manufacturing investments often require between 10 and 20 years to realise their full potential.

According to him, banks, pension funds, insurance companies, development finance institutions, and capital markets must play greater roles in mobilising funds for productive investments.

He also stressed the importance of policy stability and infrastructure development in encouraging businesses to commit capital to long-term industrial projects.

Citing Nigeria’s cement industry as an example of the potential of local manufacturing, Rabiu said the country had moved from importing almost 80 per cent of its domestic cement consumption to achieving self-sufficiency and becoming a net exporter.

He said similar outcomes could be achieved in other sectors through sustained investments in local production, agricultural processing, and value addition.

Rabiu also cited BUA’s integrated sugar project in Lafiagi, Kwara State, as an example of the opportunities available in agricultural processing and domestic industrial development.

he said, “Nigeria must not remain simply a supplier of raw materials or a market for finished products. We must become a nation that processes, manufactures and exports.”

The industrialist called for a new economic accord among the government, businesses, and citizens, anchored on policy stability, productive investment, human capital development, access to long-term capital, and shared prosperity.

He also urged Nigerian businesses to take advantage of opportunities under the African Continental Free Trade Area to expand their operations into regional and international markets.

Expressing confidence in Nigeria’s economic prospects, Rabiu said the country must convert its abundant natural resources and entrepreneurial capacity into tangible economic outcomes.

he stated, “But potential alone is not prosperity. It must be organised, financed and converted into production. No one will build Nigeria for us. We must build it ourselves.”

The 32nd Nigerian Economic Summit, organised by Nigerian Economic Summit Group, brought together Nigeria’s Vice President, Kashim Shettima, senior government officials, state governors, business leaders, and policymakers to discuss strategies for accelerating economic growth, improving productivity, and promoting shared prosperity.