Business
BUA Cement Posts ₦16.6bn FX Gain, Accelerates Expansion Drive
also maintained strong cash generation while sustaining an aggressive investment programme
BUA Cement recorded a net foreign exchange gain of ₦16.57 billion in the first half of 2026, reversing a ₦9.70 billion foreign exchange loss recorded in the 2025 financial year, as a more stable exchange rate sharply reduced finance costs and strengthened the company’s earnings while it continued to expand production capacity.
“We have delivered a strong quarter despite the constraints encountered,” Yusuf Binji, managing director and chief executive officer, said, adding that the company’s growth initiatives and cost optimisation programmes were gaining traction. “I am very encouraged by our outlook and performance over the next quarters.”
The net foreign exchange gain compares with ₦782.8 million recorded in the corresponding period of 2025 and reflects the relatively stable exchange rate environment that has followed the sharp currency adjustments experienced over the previous two years.
The improved foreign exchange position helped reduce net finance costs to ₦3.41 billion from ₦31.37 billion in the first half of 2025, despite the company continuing to carry substantial borrowings. Finance income also rose sharply to ₦18.73 billion, supported by higher interest earned on cash balances.
BUA Cement also maintained strong cash generation while sustaining an aggressive investment programme. Net cash generated from operating activities stood at ₦278.45 billion, underscoring the business’ strong cash conversion despite substantial dividend payments and heavy capital expenditure.
Capital expenditure reached more than ₦60.67 billion, largely invested in property, plant and equipment as the company continued expanding production capacity.
Property, plant and equipment increased to ₦1.22 trillion from ₦1.18 trillion at the end of 2025, while construction work-in-progress rose to about ₦183.86 billion, reflecting ongoing expansion projects.
The company said it is progressing with plans to increase installed production capacity from 17 million metric tonnes per annum to 20 million metric tonnes, including the construction of a greenfield cement plant in Ososo, Edo State.
Binji said ongoing process improvements would deliver higher productivity and better cost management in the coming quarters as the company pursues new growth opportunities while maintaining cost discipline.
