Afreximbank approves US$200M for BUA Industries to boost Nigeria’s manufacturing, export capacity 

NIGERIA – The African Export-Import Bank (Afreximbank) has approved a $200 million corporate finance facility to support BUA Industries Limited (BIL), part of the Nigerian conglomerate BUA Group, in its ongoing expansion efforts.  

The facility, structured in two tranches, represents Afreximbank’s continued partnership with BUA, marking the second successful financial advisory mandate the bank has executed for the group. 

The initial tranche of US$150 million was disbursed to BUA on October 16, 2024, providing a critical infusion of capital to support the company’s medium-term growth initiatives and its strategic objectives within emerging markets. 

This financial commitment will enhance BUA’s efforts to increase its presence in key sectors, including sugar and cement manufacturing, flour milling, oil milling, and more, to support regional demand and strengthen Nigeria’s manufacturing and export capacities. 

Abdul Samad Rabiu, chairman of BUA Group, underscored the importance of the facility in advancing Nigeria’s industrial and manufacturing sectors.  

“With Afreximbank’s support, BUA can increase investments to strengthen industrial capacity and meet regional demand. Our goal is sustainable growth that boosts Nigeria’s self-sufficiency and Africa’s global trade presence, creating jobs and building economic resilience,” Rabiu stated. 

According to Kanayo Awani, Executive Vice President of Intra Africa Trade and Export Development at Afreximbank, the bank is committed to aiding BUA’s industrial and export growth.  

“This facility provides essential financial support to expand BUA’s industrial base and increase Nigeria’s manufacturing capacity for exports,” she said. 

The support comes at a time when BUA is considering expansion of its processing capacity.

Recently, BUA Foods announced plans to enhance its pasta production capacity by 400,000 tonnes per year at its facility in Nigeria.

This expansion would increase the plant’s total output to 900,000 tonnes annually, a significant rise from its current capacity of 500,000 tonnes as part of BUA Foods’ broader strategy to address food shortages and support the country’s development.

In August 2024, BUA Foods signed an agreement with IMAS, a prominent Turkish flour milling equipment manufacturer, to build four (4) state-of-the-art wheat and flour milling factories with a cumulative milling capacity of 3,200 tonnes per day. 

The new factories are expected to provide enhanced manufacturing capacity and capabilities, enabling the delivery of more high-quality products that will contribute to addressing Nigeria’s food challenges. 

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