BUA Foods ramps up investment, pledges stable food prices despite inflation

…declares N504bn dividend after record profit

BUA Foods Plc has pledged to keep prices of its food products stable despite persistent inflation as the company unveiled an aggressive expansion programme aimed at boosting manufacturing capacity after reporting record earnings and declaring a N504 billion dividend for shareholders.

Nigeria’s largest food manufacturer said increased investment in production, local sourcing, and backward integration would enable it to sustain affordability for consumers while strengthening food security and delivering long-term growth.

Speaking at the company’s 2026 annual general meeting, Kabiru Rabiu, group executive director, said BUA Foods is pursuing expansion not only to grow earnings but also to help cushion the impact of inflation on Nigerian households.

The company has expanded its outgrower programme for rice farmers by providing mechanisation, irrigation, and farm inputs, particularly fertiliser, to improve yields and secure local raw material supply.

“We as a business have taken this as a challenge and also as an opportunity to improve the yield for our farmers, working with them to increase the paddy they can produce for us,” Rabiu said.

He noted that fertiliser application in Nigeria remains far below levels in countries such as Thailand, India, and China, limiting agricultural productivity. While macroeconomic conditions do not always allow manufacturers to cut prices significantly, he said the company remains committed to ensuring its products remain affordable and accessible through greater operational efficiency and increased domestic production.

“But one company alone cannot do it,” Rabiu said. “We are doing our bit because we believe it is our responsibility as the largest food business to ensure the country’sBUA Foods ranked among Africa’s fastest-growing firms on strong growth food security.”

Abdul Samad Rabiu, Chairman, BUA Foods, said the company’s performance in 2025 reflected its commitment to creating value beyond shareholder returns, adding that scale and efficiency have already contributed to moderating food prices.

“We observed that food prices have moderated significantly compared to the previous year, a trend we are committed to sustaining,” he said. “We have proven that with scale and efficiency, we can help to reduce inflation and economic hardship.”

He said BUA Foods would continue to leverage its production capacity, operational efficiency and stronger raw material sourcing to improve affordability, arguing that Nigeria’s industrial transformation will require sustained private-sector investment alongside government policies.

The company reported revenue of N1.77 trillion for the 2025 financial year, up 16% from N1.53 trillion a year earlier, while profit after tax rose to N518.4 billion on the back of operational efficiencies, margin expansion and disciplined cost management.

Earnings per share increased 95% to N28.80, prompting shareholders to approve a final dividend of N28 per share, amounting to N504 billion. Shareholders also re-elected retiring directors and approved the appointment of members of the audit committee alongside other statutory resolutions.

BUA Foods also announced a new phase of expansion that will increase wheat milling capacity, add noodles to its product portfolio, complete its edible oils business and deepen investments across its integrated manufacturing operations.

Ayodele Abioye, managing director said the investments would position the company as the largest player in Nigeria’s food manufacturing industry while strengthening competition across the sector.

“This is why we are investing so heavily in expansion,” Abioye said. “By next year, when our current projects are completed, BUA will become the largest player in our sector in Nigeria. We are pursuing growth because scale matters in an industry like ours.”

He said larger production volumes would improve efficiency, enhance competitiveness and ultimately benefit consumers through more stable pricing and greater product availability.

Abioye noted that inflation and currency volatility continued to weaken consumer purchasing power during the year, but strategic pricing decisions enabled the company to sustain demand across its product lines.

“Innovation remains integral to our growth,” he said. “From introducing new product and pack formats to improving our packaging and production processes, we continue to enhance both product quality and operational efficiency.”

He said the company’s backward integration programme in sugar is progressing steadily, with development of its 20,000-hectare sugarcane plantation moving toward commercialisation. BUA Foods also expanded its agricultural partnerships with rice farmers through its collaboration with the Lafiagi community in Kwara State to strengthen local supply chains.

Abioye said the company’s ambition extends beyond becoming the industry’s biggest producer, arguing that stronger indigenous manufacturers are essential for Nigeria’s economic development.

“Our objective is straightforward: to build sufficient scale to compete effectively with every player in the market,” he said. “Nigeria benefits when there are strong indigenous companies capable of competing at the highest level, investing for the long term and reinvesting profits back into the economy.”