Chairman of BUA Cement Plc, Dr Abdul Samad Rabiu, has stated that recent foreign exchange reforms by the Central Bank of Nigeria have removed the need for companies to seek FX through lobbying. Rabiu made these remarks on Monday in Abuja during a media briefing following BUA Cement Plc’s 9th Annual General Meeting.

He described the new FX policy as more open and driven by market dynamics, contrasting it with previous approaches which, according to him, led to artificial shortages and pushed businesses to seek special access to dollars.

“I was making a joke a few weeks ago that I’ve only seen the current CBN Governor maybe twice since his appointment. That’s because I don’t need him. Before now, I used to visit the CBN every two weeks to lobby for FX. That was the only way to survive,” Rabiu said.

He criticised the old FX regime where the official rate was far below the black market rate, saying it distorted the system and restricted access for businesses.

“The rate was N500 or N600 officially, but nobody could get it. On the street, it was closer to N1,000. It was an artificial rate,” he said.

The BUA chairman commended the current FX reforms for merging rates, saying, “Now, the rate you get is what everyone else gets. You go to the bank, you get FX at the market rate.”

Rabiu voiced confidence in a continued appreciation of the naira, predicting that the exchange rate could drop to around N1,200/$ in the near future, down from nearly N2,000 earlier in the year.

He mentioned that the strengthening of the naira was already reducing the prices of goods, including cement and food items.

Speaking on the issue of cement pricing, Rabiu said the rise in production costs, especially due to FX fluctuations, energy costs, and the need for imported machinery, were responsible for recent price increases. Nevertheless, he noted that BUA had tried to maintain stable prices.

Rabiu explained that BUA Cement’s revenue grew to N877bn in 2024 from N460bn in 2023, even though the company recorded FX losses of N93.9bn.

He stated that the company’s profit before tax rose by 48.2 per cent to N99.63bn, and its return on average capital employed increased to 15 per cent from 10 per cent the previous year.

The company’s earnings per share climbed to N2.18 in 2024 from N2.05 in 2023, marking a 6.3 per cent rise. “This performance was driven by a combination of increased dispatch volumes and prudent pricing strategies, even as the Company absorbed rising input costs.

“Cash generation grew significantly, enabling increased capital expenditure financing and supporting our strategic efforts to reduce exposure to foreign currency obligations. This was achieved by paying down import finance facilities and aligning accrued interest payments with available cash flows,” he said.

Rabiu added that BUA Cement earned N81bn in profit after tax in the first quarter of 2025, surpassing its full-year profit for 2024. He projected that total earnings for 2025 could reach N250bn, attributing this growth to improved efficiency, reduced FX losses, and higher production capacity.

He said the company had no immediate expansion plans beyond its current capacity of 20 million metric tonnes, after recently launching two new cement lines in Sokoto and Edo States.

Rabiu also restated BUA’s focus on shareholder value, announcing a dividend of N2.05 per share, representing a payout ratio of 94 per cent.

The Managing Director and CEO of BUA Cement, Yusuf Binji, also spoke, highlighting the company’s strong financial results, agility, and strategic focus on growth despite a dynamic economic environment.

Binji said the company’s biggest cost—energy—was being tackled through the construction of a 700-tonnes-per-day LNG regasification plant, which would ensure supply and cut costs. He added that BUA Cement had renegotiated its service contracts to favour local content as a way to reduce FX risks and lower operational expenses.

Guaranty Trust Holding Company has achieved a strong mid-market showing during the July 16, 2025, trading session, surpassing the N100 milestone.

This makes GTCO the first banking stock listed under the NGX Banking Index to cross the N100 benchmark, while Stanbic IBTC Holdings remained just below at N99.

The upward movement aligns with the broader positive sentiment in the banking sector, where the NGX Banking Index has gained over 22% so far in July.

The development follows GTCO’s recent dual listing, which involved 2.29 billion ordinary shares being listed on the London Stock Exchange on July 9, 2025, and another 2.28 billion shares added to the Nigerian Exchange the next day.

The stock’s rise appears driven by investor response to its cross-border listing and its strong Q1 2024 financial performance. Month-to-date, GTCO has posted a gain exceeding 27%.

President of the Dangote Group, Alhaji Aliko Dangote, has revealed his intention to slash the cost of Liquefied Petroleum Gas, also known as cooking gas. He further stated that if current distributors resist the price reduction, he will begin selling directly to consumers.

Industry players, however, have opposed the proposal, accusing Dangote of attempting to dominate the LPG market. They voiced their concerns on Monday, fearing the possibility of monopolistic control.

During a recent inspection of his refinery by both local and international visitors, Dangote pointed out that the current cost of cooking gas is too high and beyond the reach of ordinary Nigerians who rely on firewood.

He mentioned that the refinery is now capable of producing 22,000 tonnes of LPG daily, and efforts are underway to increase output for local distribution, especially as more Nigerians adopt gas for cooking.

Addressing members of the Lagos Business School CGEO Africa at his Lekki refinery, Dangote stated, “The one that we didn’t write, which you must have seen, is LPG. Currently, we do LPG of about 2,000 tonnes per day. You know Nigeria is gradually moving to the usage of LPG. But I believe it is expensive, but right now we’re trying to bring down the price and make it cheaper.”

Dangote cautioned that “if the distributors are not trying to bring it down, we’ll go directly and sell to the consumers, so that people will now transit from firewood or kerosene to LPG for cooking.”

It was earlier reported that Dangote plans to begin nationwide direct distribution of petrol, diesel, and aviation fuel in August, using 4,000 CNG-powered buses.

At present, cooking gas sells for between N1,000 and N1,300 per kilogramme. Dangote aims to reduce this to make it more accessible.

Operators kick

LPG market stakeholders appear displeased with Dangote’s plan to shake up the sector.

In an interview with our correspondent, the former Chairman of the LPG and Natural Gas Downstream Group of the Lagos Chamber of Commerce and Industry, Godwin Okoduwa, labelled the move monopolistic.

Okoduwa stressed that Dangote must acknowledge the efforts of investors who expanded the LPG market from 70,000 metric tonnes in 2007 to over 1 million metric tonnes by 2022. He emphasized the importance of cooperation.

“I think it’s monopolistic. I think a market should be protected to encourage growth. The LPG industry in Nigeria grew from 70,000 metric tonnes in 2007 to over 1.3 million tonnes in 2022. That was done by collaboration — collaboration with the Federal Government, the NLNG, and offtakers. Everything was done in collaboration. It grew from 70,000 to 250 to 800, and now over a million,” Okoduwa said.

He argued that monopoly cannot drive growth, but collaboration can. “Today, we are just under 5kg or 6kg per capita consumption in terms of LPG. Other countries are doing much more. South Africa is doing double digits, Morocco and Tunisia are doing double digits. We can do much more.

“So, we should, as an industry and as a country, focus on how to grow the LPG industry and not allow someone (to frustrate the players). Yes, he has invested; yes, it’s a capital economy, but he should not be allowed to frustrate the players.

“There are people who have spent money, spent resources, even business and development, and someone just comes in to reap from the work that has been done. I’m sure he wouldn’t have built if there had not been an existing market. The work has been done, he should respect the market and let us grow. It shouldn’t be a zero-sum strategy. It should be collaborative,” he said.

He recommended that despite having a significant advantage, Dangote should pursue collaboration.

“My advice to him is that the pie can be bigger. The Nigerian market is about 1.3 million tonnes. The Nigerian LPG market can be 5 million tonnes. He should work towards collaboration rather than competition, because at the end of the day, everybody benefits,” he added.

When told that Dangote’s main goal is to lower gas prices so everyone can afford it and reduce firewood use, Okoduwa responded, “I have news for him. He should go to the Northeast, where you have the least consumption of LPG. He should go to the Northeast and start developing the LPG infrastructure there. I think we will tell him thank you for that.”

In a similar vein, the Executive Secretary/Chief Executive Officer of the Nigerian Association of Liquefied Petroleum Gas Marketers, Bassey Essien, expressed doubt about Dangote’s ability to sell gas directly to consumers or significantly reduce prices.

“I am saying that it’s unrealistic. What is the position with PMS? Has the refinery been able to sell petrol directly to you and me into our cars at a very cheap rate?” Essien asked.