BUA Cement Finalizes Deal for New 3 Million Ton Annual Facility in Sokoto

BUA Cement Plc, producer of BUA Portland Limestone Cement and Sokoto Portland Limestone Cement, revealed on Wednesday that it has finalized an agreement with CBMI for the establishment of an advanced 3-million-ton-per-annum cement facility in Sokoto.

According to a company statement, this venture represents a pivotal step in its strategy for expansion and demonstrates its dedication to addressing Nigeria's escalating infrastructure requirements.

The $240 million initiative encompasses the addition of a new cement line, a power plant, and several other vital facilities, which will collectively boost BUA Cement’s output capacity to 20 million tons upon completion, thereby enhancing regional supply.

This agreement is a continuation of BUA Cement’s long-standing partnership with CBMI, which has spanned 15 years and involved the successful delivery of cement production lines totaling 14 million tons at BUA factories located in Obu (Edo) and Sokoto.

Strategically positioned, the Sokoto plant is the sole cement facility in Nigeria’s North-West, facilitating convenient access to numerous landlocked neighboring countries. This setup allows BUA Cement to effectively cater to both domestic and regional markets, ensuring that high-quality Nigerian cement reaches new communities and essential infrastructure projects.

Simultaneously, the BUA 700-ton-per-day mini LNG plant in Kogi, which is set to be completed later this year, will provide clean and dependable energy to power both the new Sokoto line and existing lines, enhancing operational efficiency, reducing emissions, and fostering sustainable industrial progress.

The investment comes at a crucial time for Nigeria, the company stated, as the bold reforms introduced by President Bola Tinubu’s administration have simplified the process of establishing and operating factories while stimulating the demand for infrastructure and construction initiatives.

“These reforms create a supportive environment for industrial growth, and BUA Cement is proud to play a role in the nation's development by increasing capacity, creating jobs, and enhancing vital infrastructure,” the statement concluded.

With an estimated completion timeline of 20 months for the Sokoto line, BUA Cement expresses enthusiasm about the future prospects and is confident that this project will bolster its position as a frontrunner in the Nigerian cement sector as well as throughout the region.