The African Export-Import Bank (Afreximbank) has granted a $200 million corporate finance facility to BUA Industries Limited (BIL) to support its expansion projects. According to a statement, the first tranche of $150 million was disbursed on October 16, 2024.
BUA Group’s Chairman, Alhaji Abdul Samad Rabiu, stated that this facility marks a significant milestone in the company’s commitment to advancing Nigeria’s manufacturing, infrastructure, and energy sectors.
Recent Expansion Projects
BUA Foods Plc has signed agreements with Turkish and Italian firms to construct new wheat milling factories and increase pasta production. The projects include:
- Four new wheat milling factories with a combined capacity of 3,200 tonnes per day
- Increasing annual pasta production from 400,000 tonnes to 900,000 tonnes
- Addition of nine long-cut pasta production lines
These expansions aim to enhance manufacturing capacity, produce high-quality products, and address food challenges in Nigeria.
Industry Impact
BUA Foods Plc’s expansion projects are expected to intensify competition in the pasta production market, where major players like Flour Mills of Nigeria Plc and Dangote Foods operate.
Amidst Economic Challenges
Despite economic challenges, several Nigerian companies, including Dangote Cement, Nestlé, Emzor Pharmaceuticals, and Transcorp Hotels, are investing billions in expansion projects.
A recent Nairametrics report highlighted the significant reforms in the energy and foreign exchange markets, which have disrupted the business environment and triggered economic shocks.
The report noted that major Nigerian companies listed on the NGX reported a combined foreign exchange loss of N1.7 trillion.
This financing facility from Afreximbank underscores BUA Group’s commitment to Nigeria’s economic growth and development.
