Afreximbank approves US$200M financing for BUA Industries’ expansion in Nigeria

NIGERIA – The African Export-Import Bank (Afreximbank) has approved a US$200 million Corporate Finance Facility for BUA Industries Limited (BIL), a prominent Nigerian conglomerate with interests spanning sugar, flour and oil sectors.

The financing, allocated to support BUA’s expansion agenda, aligns with regional initiatives to strengthen Africa’s manufacturing capacity and increase Nigeria’s role in global trade.

The first tranche, amounting to US$150 million, was disbursed on October 16, 2024, marking an operational milestone for BUA Industries in its ongoing growth trajectory. 

This collaboration aims to enhance Nigeria’s manufacturing and export capabilities, aligning with Afreximbank’s broader mandate to support intra-African trade and economic integration.

Strengthening Nigeria’s economic base

Kanayo Awani, Executive Vice President of Intra Africa Trade and Export Development at Afreximbank, emphasized the impact of the partnership on Nigeria’s economy, highlighting that the financing facility aims to reinforce the country’s industrial foundation. 

The facility is set to stimulate job creation, drive import substitution, and diversify Nigeria’s export base, ultimately contributing to an anticipated boost in the country’s Gross Domestic Product (GDP). 

“We are delighted at this partnership, which promises to deliver meaningful impact through job creation, import substitution, and export diversification, thereby boosting Nigeria’s GDP,” Awani stated.

Path to regional trade integration

BUA Industries, founded in 1988 and headquartered in Lagos, has rapidly grown its influence across several sectors critical to the African economy. 

With a mission to drive sustainable development across the continent, the conglomerate has actively pursued opportunities created by the African Continental Free Trade Area (AfCFTA) to extend its export reach and solidify its presence in the regional trade landscape. 

By leveraging Afreximbank’s financial support, BUA aims to bolster industrial capacity to address both local and regional demand, helping Nigeria and Africa strengthen their standing in the global market.

Alhaji Abdul Samad Rabiu, Chairman of BUA Industries, described the facility as an essential element of the company’s vision to industrialize Nigeria’s manufacturing and infrastructure sectors. 

“With Afreximbank’s support, BUA can increase investments to meet local and regional demand, enhancing Nigeria’s self-sufficiency and Africa’s trade presence while building economic resilience,” Rabiu remarked.

Expanding Africa’s manufacturing capabilities

Over recent years, BUA has positioned itself as one of Africa’s fastest-growing companies. Its recent initiatives include a partnership with IMAS, a Turkish flour milling equipment manufacturer, to establish four advanced flour milling factories with a cumulative milling capacity of 3,200 tonnes per day. 

This investment complements BUA’s broader strategy to expand Nigeria’s food production infrastructure, increase local food security, and reduce the nation’s reliance on imports.

The financial support from Afreximbank further enables BUA to enhance its logistics and supply chain operations, with a view to facilitating easier market access for its diverse product portfolio across Africa.