BUA Cement Bounces Back With N16.57bn Forex Gain, Pumps Billions Into Expansion

BUA Cement Plc has staged a remarkable financial turnaround, posting a massive N16.57 billion foreign exchange gain in the first half of 2026 as Nigeria’s exchange rate stability helped the cement giant reverse years of currency-related losses.

The impressive performance marks a sharp contrast to the N782.8 million forex gain recorded in the same period of 2025 and the N9.70 billion foreign exchange loss suffered for the entire 2025 financial year, highlighting the easing pressure from volatile currency movements.

The stronger forex position significantly reduced the company’s finance costs, with net finance expenses crashing to N3.41 billion from N31.37 billion recorded in the corresponding period of last year, despite BUA Cement maintaining substantial borrowings.

The company also enjoyed a surge in finance income, which climbed to N18.73 billion, driven by higher interest earnings on its cash reserves.

Beyond the forex windfall, BUA Cement demonstrated robust operational strength, generating N278.45 billion in net cash from operating activities, underscoring its ability to convert sales into cash even after paying significant dividends and funding major expansion projects.

In line with its long-term growth strategy, the cement manufacturer invested more than N60.67 billion in capital expenditure during the period, with funds channelled into new production facilities and equipment.

The company’s property, plant and equipment expanded to N1.22 trillion, up from N1.18 trillion at the close of 2025, while construction work-in-progress climbed to approximately N183.86 billion, reflecting ongoing investment in new production capacity.

According to the earnings report, BUA Cement is advancing plans to increase its installed production capacity from 17 million metric tonnes per annum to 20 million metric tonnes, including the development of a new greenfield cement plant in Ososo, Edo State.

Commenting on the company’s performance, Managing Director and Chief Executive Officer, Yusuf Binji, said BUA Cement remained committed to unlocking new growth opportunities while maintaining strict cost discipline.

“We have delivered a strong quarter despite the constraints encountered,” Binji said.

He added that the company’s growth initiatives and cost optimisation programmes were beginning to yield positive results, expressing confidence that ongoing operational improvements would further boost productivity and efficiency.

“I am very encouraged by our outlook and performance over the next quarters,” he said.

Industry observers say the improved exchange rate environment, coupled with aggressive investment in production capacity, positions BUA Cement to strengthen its market leadership as demand for cement continues to rise across Nigeria’s construction sector.