Abdul Samad Rabiu assumes the second-richest man in Nigeria, as company attracts niche investors
Nigerian billionaire industrialist Abdul Samad Rabiu, CEO and Chairman of BUA Group has boosted his profile in the world richest men raking early this year as 574th richest man in the world, with an asset worth $4.5 billion, thus positioning him as the 6th on the African continent, and the second in Nigeria.
According to Forbes, Mr. Rabiu is worth $4.5 billion making him the 574th richest man in the world and the 6th on the African continent. His net worth is poised to increase further if his two listed companies continue to print impressive share price growth. Last week, the CEO and Chairman of BUA Group added nearly $1.9 billion to his net worth.
On Wednesday, Jan. 5, his consolidated food business satisfied the listing requirements of its shares on the Nigerian Exchange after it obtained relevant regulatory approvals from the regulatory authorities.
Investors were quick to react when the market opened on Wednesday as a total of 18 billion shares at N40 ($0.0968) were admitted to trading, representing a valuation of N720 billion ($1.74 billion).
The company’s market capitalisation increased to N792 billion ($1.92 billion), as Mr. Rabiu’s fortune also increased from $5.3 billion to $7.2 billion.
BUA Foods surpassed N1 trillion market capitalization after just two days of trading on the NGX. As of the time, the share price of the company was trading at N58.5 per share. Since then, it has rallied 12.8% to N66 per unit of share.
Commenting on the listing, Mr. Rabiu, CON, Chairman of BUA Group, said, “I am delighted that yet another member of BUA Group has been listed on the NGX. This shows our commitment to national economic growth and support for the food security drive of the nation in alignment with global sustainability goals.”
We appreciate the continued support of our stakeholders – financial advisers, stockbrokers, suppliers, customers, consumers and members of staff. In particular, we cherish our host communities with whom we continue to entrench very strong and mutually beneficial relationships.”
As at the date of listing on The Nigerian Exchange, capacity utilisation of the Company’s business divisions were as follows: Sugar Division 75%, Flour Division84%, and Pasta Division 54%.
BUA Foods PLC was formed in November 2021 following a restructuring by way of a scheme under Section 711 of CAMA among BUA Sugar Refinery Limited, IRS Flour Mills Limited, IRS Pasta Limited, BUA Rice Limited, BUA Oil Mills Limited, and BUA Foods Limited, further to which BUA Sugar Refinery (a private limited liability company, incorporated on 13 April 2005 and commenced business operations in September 2008) emerged as the surviving entity.
As part of the Restructuring, the name of the enlarged entity was changed to BUA Foods with its operations reorganised into five business divisions: Sugar, Flour, Pasta, Rice and Edible Oils. In December 2021, the Company was converted into a public limited liability company. BUA Foods is affiliated with diverse group companies under the BUA brand that span the food and infrastructure sectors.
BUA Foods is associated with high quality, accessible, competitively priced and innovative food
products. The Company has over the years established itself as a successful food manufacturing and
processing company in Nigeria.
BUA Foods owns the second largest sugar refinery in West Africa, with total sugar refining capacity of
1.5 million MT per annum, which is able to meet 93% of Nigeria’s estimated sugar consumption rate in
2020 of 1.6 million MT per annum, as estimated by Fitch Solution in 2020.
According to the Company, its sugar refining capacity has earned the Company a market share of 35% in Q3 2021, representing a 9% increase from its 2020 position of 26% market share. This was achieved by the addition of 750,000MT per annum capacity to the Company’s sugar refinery in Port Harcourt.
Abdul SamadRabiu was born in Kano in the north-western part of Nigeria, where he obtained his early education. He attended Capital University in Columbus, Ohio and returned to Nigeria at the age of 24 to oversee the family business This was when his father Isyaku Rabiu, was being detained by the administration of General Muhammadu Buhari for allegedly not paying rice import duties.
He established BUA International Limited in 1988 for the sole purpose of commodity trading. The company imported rice, edible oil, flour, and iron and steel.
In 1990, the government, which owned Delta Steel Company, contracted with BUA to supply its raw materials in exchange for finished products. This provided a much-needed windfall for the young company. BUA expanded further into steel, producing billets, importing iron ore, and constructing multiple rolling mills in Nigeria.
A few years later, BUA acquired Nigerian Oil Mills Limited, the largest edible oil processing company in Nigeria. In 2005 BUA started two flour-milling plants, in Lagos and in Kano. By 2008, BUA had broken an eight-year monopoly in the Nigerian sugar industry by commissioning the second-largest sugar refinery in sub-Saharan Africa. In 2009 the company went on to acquire a controlling stake in a publicly-listed Cement Company in Northern Nigeria and began to construct a $900 million cement plant in Edo State, completing it in early 2015.
Abdul SamadRabiu uses the BUA Foundation for his philanthropic activities. These include the construction of a 7,000-square-meter paediatric ward at the Aminu Kano Teaching Hospital and the construction of the Centre for Islamic Studies at Bayero University Kano amongst several others.
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