Nigeria must stop depending on imported finished goods — BUA founder

Abdul Samad Rabiu, Founder and Executive Chairman of the BUA Group, has urged Nigeria to shift its focus from importing finished goods to boosting domestic manufacturing and processing. Speaking at the 32nd Nigerian Economic Summit in Abuja, Rabiu argued that Nigeria could not achieve sustainable growth by solely being a consumer of foreign products. He emphasized the need for the nation to become self-sufficient in processing raw materials and exporting goods.

Rabiu highlighted the success of Nigeria's cement industry as proof that domestic investment and supportive policies can transform a dependency on imports into an export-oriented industry. He pointed to BUA Cement's self-sufficiency and export capabilities as a result of processing locally available limestone. Rabiu urged the government and private sector to replicate this success in sectors such as agriculture, food processing, and general manufacturing, by growing what is consumed domestically, manufacturing what is needed, and expanding exports.

The BUA Group's two listed subsidiaries, BUA Foods and BUA Cement, have a combined market capitalization exceeding $17 billion. The company is currently investing in various sectors, including flour milling, pasta, noodles, edible oils, rice milling, and feed mills, with plans to double its production capacity by next year. Rabiu also mentioned BUA Foods' $10 billion valuation and BUA Cement's $7 billion market capitalization.

Acknowledging the challenges posed by government policies, such as the removal of petrol subsidies and foreign exchange liberalisation, Rabiu admitted that these measures have placed significant financial burdens on households and businesses. However, he maintained that improved foreign exchange availability has reduced manufacturers' reliance on direct allocations from the Central Bank of Nigeria. He praised the current market arrangement for being more predictable.

Despite the progress, Rabiu identified expensive borrowing, inadequate infrastructure, and policy uncertainty as major obstacles to industrial expansion. He emphasized the importance of affordable long-term financing for manufacturing investments, which often require between 10 to 20 years to generate full returns. Rabiu called for increased mobilisation of pension funds, insurance capital, and other institutional investments into productive enterprises.

He also advocated for the creation of an additional 100 major Nigerian industrial companies to boost employment, strengthen local supply chains, and increase exports.

To take advantage of the African Continental Free Trade Area, Rabiu proposed enhancing transport infrastructure, efficient ports, payment systems, and easing cross-border movement. He advocated for an economic accord focusing on policy stability, productive investment, human capital development, long-term financing, and shared prosperity. Rabiu concluded by stating that economic success should be measured not only by growth but by the improvement of the lives of Nigerians.