BUA partners Bühler on 32-ton-per-hour rice processing expansion project
The investment is expected to accelerate growth in the company’s rice business and increase rice’s contribution to revenue.
NIGERIA – The Nigerian conglomerate BUA Group has signed a strategic partnership with Swiss industrial manufacturer Bühler to scale up its rice processing business, signalling deepening private sector investment in one of the country’s most strategic staple food sectors.
The agreement, concluded in Dubai on December 1, provides for the construction of a 32-ton-per-hour paddy rice processing line, with the company yet to disclose its investment value or project location.
The move aligns with BUA’s long-term ambition to strengthen its footprint in the rice market, where national demand continues to outstrip local supply.
According to its 2024 annual report, BUA Foods, the group’s agribusiness arm already operates a mill in Kano State with an installed paddy rice processing capacity of 200,000 tonnes a year.
With Nigeria importing roughly 2.5 million tonnes of milled rice annually between 2022 and 2024, based on data from the Food and Agriculture Organization, the expansion signals growing competition in a sector critical to food security.
“Rice continues to account for nearly 10% of the average Nigerian household’s food expenditure, underscoring its importance in national food security,
Looking ahead, market analysts project the Nigerian rice sector to grow at a compound annual rate of 11.32% between 2025 and 2030, with total market revenues expected to reach around US$ 5.62 billion by 2025,” BUA noted in its latest report.
The strengthening of production capacity is expected to increase rice’s contribution to group earnings.
In 2024, rice sales generated US$ 3.8 million for BUA Foods, more than double the US$ 1.4 million reported the previous year.
The group posted total revenue of US$ 1.05 billion last year, with sugar accounting for 48%, flour milling 39% and pasta 13%.
The partnership comes after Bühler’s West African region recently organised a capacity-building seminar for processors, signalling growing alignment between industrial investment and skills development.
In collaboration with GPIC and IBC Team Nigeria, Bühler hosted a one-day training programme on 11 November for processors operating five-ton-per-hour milling plants.
The event brought together invited millers and stakeholders for practical sessions on improving milling efficiency, enhancing product quality and applying sustainable processing technologies.
Participants took part in hands-on demonstrations of Bühler’s modern rice processing systems, alongside discussions on financing, small business growth strategies and options to diversify into processing other grains using similar technologies.
According to Buhler, feedback from attendees was highly positive, with many expressing renewed confidence in improving operations due to the interactive learning environment.
“The strong turnout underscores our commitment to strengthening local capacity and competitiveness in the rice value chain,” Buhler said.
The organisation added that more training sessions are planned to empower processors, improve food quality and support market expansion across West Africa.
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