BUA Group signs contract for 2 MMT wheat handling infrastructure in Port Harcourt
The contract was formalized at a signing ceremony in Dubai, attended by Abdul Samad Rabiu, Founder and Executive Chairman of BUA Group, and Okcul Barlik, CEO of Agrimac Makina Limited.
NIGERIA – BUA Group, one of Nigeria’s leading conglomerates in the food and manufacturing sector, has signed a landmark contract for the construction and installation of a modern wheat conveying and handling system with a capacity of 2 million metric tonnes (MMT) per annum.
This advanced equipment will connect BUA Ports directly to BUA Flour & Pasta Mills in Port Harcourt, Rivers State, streamlining the supply chain and reinforcing Port Harcourt’s role as a major hub for agribusiness and manufacturing in Nigeria.
The contract was formalized at a signing ceremony in Dubai, attended by Abdul Samad Rabiu, Founder and Executive Chairman of BUA Group, and Okcul Barlik, CEO of Agrimac Makina Limited.
The partnership underscores BUA’s commitment to building world-class infrastructure and investing in projects that drive Africa’s industrial growth. By enabling efficient movement of wheat from port to mill, the new system is expected to reduce bottlenecks, lower logistics costs, and support Nigeria’s broader goal of food self-sufficiency.
This initiative complements BUA’s ongoing expansion in the wheat milling sector. Recently, BUA Foods Plc signed agreements with Turkish equipment manufacturer IMAS to build four new wheat milling factories, which will boost the company’s total milling capacity to 2.5 million metric tonnes per year.
In addition to the wheat handling project, BUA Foods has also signed a deal with Italian company FAVA to increase its pasta production capacity from 400,000 to 900,000 MTpa. This expansion includes the addition of nine long-cut pasta production lines, further solidifying BUA’s position in Nigeria’s food manufacturing industry.
These investments are designed to meet rising demand for flour and pasta, create jobs, and stabilize prices for wheat-based products in Nigeria’s volatile food market.
Financially, BUA reported impressive Q1 2025 results, reporting a 124% surge in net profit to N125.28 billion (US$103 million).
The company’s revenue also climbed 24% year-on-year to N442.1 billion (US$363.6 million), buoyed by strong performances in flour, rice, and pasta segments, despite persistent macroeconomic challenges.
Flour sales led the growth, soaring 145% to N176.2 billion (US$144.9 million), while rice posted a remarkable 1617% increase to N13.02 billion (US$10.7 million), albeit from a low base.
Pasta also delivered a solid 12% year-on-year gain to N41.5 billion (US$34.1 million). However, revenue from sugar, the company’s largest product line, fell 11% to N211.3 billion (US$173.7 million), potentially due to pricing pressures or supply chain issues.
Gross profit rose 39% to N160.91 billion (US$132.4 million), pushing the gross margin up to 36.4%, an improvement of over 400 basis points from the same quarter in 2024. This reflects the company’s improved cost control, better local sourcing, and an effective pricing strategy.
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