Nigeria’s BUA Cement pays N109.24 billion in taxes in 2025

BUA Cement Plc, the second-largest cement producer in Nigeria, controlled by Nigerian billionaire industrialist Abdul Samad Rabiu, has reported a N109.24 billion ($79.21 million) tax charge for the year ended Dec. 31, 2025, more than four times the N25.72 billion ($18.65 million) reported in 2024. (324.7%)

The figure reflects the company’s sharply higher profitability during the period, as pre-tax earnings surged by 367% to $337.4 million on the back of strong revenue growth of N1.18 trillion ($855.26 million), improved cost discipline, and a significant reduction in foreign exchange losses, which together expanded its taxable income base.

Despite the higher tax burden, the cement producer achieved record earnings, with profit after tax increasing by 381.72% from N73.91 billion ($53.59 million) to N356.04 billion ($258.19 million).

Tax surge mirrors record profitability

The 2025 tax charge, equivalent to 23.48% of BUA Cement’s pre-tax profit of N465.28 billion ($337.4 million), marks a sharp increase from the prior year and underscores the company’s strong operational momentum. Pre-tax profit more than quadrupled from N99.63 billion ($72.25 million) in 2024, driven by robust revenue growth, improved pricing, and a sharp reduction in foreign exchange losses that had previously weighed on earnings.

The stronger earnings base not only lifted the company’s tax obligations but also reinforced its position among Nigeria’s most profitable industrial firms and as the 4th most capitalised firm on the Nigerian Exchange, highlighting the extent to which margin expansion and cost discipline shaped its 2025 performance.

Revenue and profit surge

Revenue rose 34.5% to N1.179 trillion ($864.3 million), driven largely by strong demand for bagged cement, which accounted for the bulk of sales, alongside modest gains in bulk cement. Profit jumped 379% to N356 billion ($261 million), supported by improved pricing, cost discipline, and a sharp reduction in foreign exchange losses, which eased pressure on earnings. Domestic sales remained dominant, contributing over N1.16 trillion ($841.12 million), while export revenue expanded significantly from a low base, reinforcing gradual regional penetration.

Dividend proposal reflects earnings strength
Following record profitability, the board proposed a final dividend of N10 ($0.01) per share, up 387.8% from 2024, signaling strong cash flow generation, heightened shareholder returns, and management’s confidence in the company’s earnings sustainability.

In its analysts and investors’ presentation of the full-year 2025 audited results, the cement producer described 2025 as a defining year for BUA Cement Plc, noting that strong revenue growth, disciplined cost control, and easing foreign exchange pressures underpinned the company’s record earnings performance. (Shore Africa)