Business

PBUA RESPONDS TO DANGOTE

Published

1 year ago

November 3, 2023

BUA RESPONDS TO DANGOTE

It’s with a profound sense of responsibility and a heavy heart that we address the claims and very cheap attempts at blackmail levelled against BUA by Aliko Dangote in a recent 7-page editorial following months of sponsored campaigns of calumny against us using third-party platforms. To put things in perspective, it’s imperative to revisit history—a history not of rivalry but of resilience; not of enmity, but of endurance.

In August 1991, a young BUA was doing its commodities trading business just as Nigeria faced a scarcity of sugar. As sugar was scarce, BUA was lucky to be one of the few with any stock for sale, and we stood prepared to supply the nation’s needs as best as our stock could. It was during this period Aliko Dangote approached us to purchase sugar. If only we knew he was setting the first of many traps in our business history. He gave us a Societe Generale Bank of Nigeria Cheque, which bounced upon presentation to the bank. Unbeknown to us, this was a ruse that would lead to a court-sanctioned freeze of our assets orchestrated by Dangote.

For three agonising months, our accounts were garnisheed, warehouses shuttered, and our spirit tested. Yet, from the ashes of deceit, BUA survived. (see attached court order)

Fast forward a few years later, we decided that since we were making good progress in our various businesses, we should open a sugar refinery. We approached one Usman Dantata (now late), Aliko Dangote’s uncle, and leased his NPA waterfront land (4.5 hectares) at the Tincan Island port, ‘Polo House’. We took the land, signed an agreement with the consent of NPA, and paid all applicable dues. Dangote waited until our contractors and equipment had been mobilised to the site, then he went to former President Obasanjo. President Obasanjo had the land revoked entirely and gave the lease to Dangote. As a result, even his uncle lost the land. BUA was only given 24 hours to vacate the land.
It took us over a year to get another land. How?

Our survival as a business especially our Lagos sugar refinery is a legacy handed to us by a loving father who, seeing his son’s distress, did what only the noblest and kindest of hearts could do. With unwavering faith, our Chairman’s late father—may his soul rest in eternal peace—handed him the land on which our Lagos Sugar Refinery stands today. This land was the location of one of his thriving businesses with a warehouse, which he shut down and handed to us without asking for compensation. He just saw the pain of our chairman, Abdul Samad Rabiu, called him one day and handed him the papers to the land. His gesture was a beacon of hope in one of our darkest hours. And so, BUA survived again another Dangote trap. Today, we are now the largest Sugar refining concern in West Africa.

Our businesses continued to surge forward amid several other attempts, too many to mention now. In 2007, under President Yar’Adua’s visionary mandate to broaden Nigeria’s cement industry and break the monopoly in the sector, BUA was among the six companies selected and granted licenses. Our approach was unconventional but effective: we introduced a floating terminal – ‘BUA CEMENT I’, which is a cement factory built into a large ship, as a stopgap while we were working on securing our land-based cement plant.

What followed, however, was another act intended to drive us out of business. Our application to dock the floating terminal in Lagos met with resistance. We then decided to berth the ship at the terminal we owned in Port Harcourt. Despite this, we faced considerable pushback and it took the decisive intervention of late President Yar Adua, who directed that the Minister of Transport and the Chairman of NPA honour our right to contribute to the nation’s growth.

But the hurdles didn’t end there. The drama intensified when Orwell Brown, a Deputy Comptroller General who was also an older brother to a Dangote Staff, launched a sudden strike, attempting to deport our vessel’s entire expatriate crew. It was a Friday that is forever seared into our memory—the shock of our expatriates rounded up, their confusion as they were shepherded onto a Dangote-funded one-way local flight from Port Harcourt to Lagos en-route Asia via Emirates.

Upon hearing of what had happened, we reached out to Tanimu Yakubu, the then Chief Economic Adviser, who acted with the urgency that the situation demanded. His call to the CG of Immigration was a lifeline, and our expatriate team was brought back from the Emirates aircraft and not deported. The aftermath was swift action by the President, who ensured that such a misuse of power would not go unchecked. DCG Brown, caught in a tangle of undue influence, admitted what he did to the Minister, and he was later dismissed.

Through all these tribulations, BUA’s resolve has only strengthened. These events narrate not just the trials of a company but the resolve of its people, bound together by a shared vision and an unwavering belief in justice and fairness.
We also know what transpired whilst we were building our Edo Cement Plant. Everyone knows the issues we faced. The plant we are operating in Edo would not have been operating and contributing immensely to the economy, if not for the former President Buhari who had to intervene by calling Governor Obaseki that no staff must lose their jobs and the plant must not be shut down, no matter what happens. We cannot say more as the matter is currently sub-judice – and is at the Supreme Court. During that time, Edwin Devakumar and Sunday Esan (two long-time and current staff of Dangote) were caught in leaked emails, whose content were not limited to sending thugs to foment trouble, close our factory as well as pushing bad press against us (See emails attached).

Same thing happened again with our Port Harcourt sugar refinery – the only sugar refinery in Nigeria that is outside Lagos. Dangote utilized every means possible to ensure the refinery did not take off and we raised the alarm. At some point, the terminal was taken away from us and was to have been given to someone else at the behest of Dangote. There had to be a presidential intervention again for NPA to do the right thing. Yet, we survived.

For over 32 years, we have been cast as the antagonists in a narrative woven with malice. We have not just survived; we have thrived, expanding our operations and contributing to Nigeria’s economy without resorting to subterfuge.

To Mr. Dangote and the Dangote Group, we say: Let us build, not belittle. Let us cultivate, not conquer. While we may share the marketplace, we need not share malice. We have nothing to do with your self-inflicted issues. Blame no one but yourself.
In closing, we at BUA remain committed to our ethos of innovation, integrity, and inclusiveness. Our history is not one of being handed anything on a silver platter. We will continue to serve our beloved country and its people with the diligence and honour they deserve. Our past, present, and future activities are rooted in the prosperity of Nigeria, undeterred by the winds of unfounded criticism. We remain focused on building and developing Nigeria.

Signed:
Management

Business

BUA Foods Records N125bn Profit As Revenue Grows By 24% In Q1 2025 Unaudited Financial Results

Published

1 day ago

May 1, 2025

Sahara Weekly

Revenue: Grew by 24% to ₦442.1 billion
Gross Profit: Increased by 39% to ₦160.91 billion
Profit After Tax: Rose by 124% to ₦125.28 billion
Total Equities: Improved by 29.2% to ₦554.34 billion

BUA FOODS has announced its unaudited financial results for the first quarter of 2025, demonstrating robust growth across key financial indicators.

The company recorded a significant revenue growth of 24 per cent to ₦442.1 billion in Q1 2025, up from ₦356.9 billion in the corresponding period of 2024. This impressive performance was driven by substantial increases in revenue from Flour, which soared 145 per cent to ₦176.2 billion, Pasta rose 12 per cent to ₦41.5 billion, and Rice recorded a remarkable increase of 1617 per cent to ₦13.02 billion. Sugar revenue, however, saw a slight 11 per cent quarter-on-quarter decrease to ₦211.3 billion (Q1 2024: ₦238.2 billion).

BUA Foods also reported a healthy gross profit of ₦160.91 billion in Q1 2025, a 39 per cent increase compared to ₦115.42 billion in Q1 2024. This growth led to an improved gross profit margin of 36.4 per cent, a 406 basis point increase from 32.3 per cent in the prior quarter.

Total operating expenses for the period increased by 56 per cent to ₦22.39 billion (Q1 2024: ₦14.37 billion), due to increases in selling and distribution expenses which rose 13 per cent to ₦11.08 billion driven by logistics costs, and administrative expenses up 147% to ₦11.32 billion.

Despite the increase in operating expenses, BUA Foods achieved a substantial growth of 124% in profit after tax (PAT) to ₦125.28 billion in Q1 2025, compared to ₦55.82 billion in Q1 2024. Consequently, Earnings per Share (EPS) also saw a significant increase of 125% to ₦6.96 from ₦3.10 in the corresponding period.

The company’s total equities stood strong at ₦554.34 billion as of Q1 2025, representing a 29.2% increase from ₦429.06 billion in FY 2024. This growth was mainly driven by a significant 30 per cent increase in retained earnings.

Commenting on the results, Engr. (Dr.) Ayodele Abioye, the Managing Director, said:

“We are pleased to begin 2025 on a strong note, as our business continued to demonstrate resilience and adaptability amidst a still-evolving macroeconomic landscape. Despite operating in a high-cost environment, our proactive supply chain measures and improved internal efficiencies enabled us to sustain strong operational momentum.”

“Revenue increased by 24%, while Net Profit leaped by 124% to N125Billion further re-affirming our position as a leading food business on the Nigerian Exchange Limited. Our ongoing investments in production capacity, product/package innovation and route-to-market development continue to impact our results positively, enabling fulfilment of customer and consumer demand.”

“As we look ahead, we remain focused on deepening our market penetration and accelerating innovation to meet changing consumer needs. With a stabilizing economy and growing emphasis on food security, we are confident that our unique and integrated business model, strong financial position, and robust execution will continue to enhance our strategic growth and create lasting value for all stakeholders throughout 2025.”

Bank

ZENITH BANK DELIGHTS SHAREHOLDERS WITH DIVIDEND PAYOUT OF N195.67 BILLION, PROMISES QUANTUM LEAP IN FUTURE

Published

2 days ago

April 30, 2025

Sahara Weekly

ZENITH BANK DELIGHTS SHAREHOLDERS WITH DIVIDEND PAYOUT OF N195.67 BILLION, PROMISES QUANTUM LEAP IN FUTURE

Dividends shareholders of Zenith Bank Plc, at the 34th Annual General Meeting (AGM) held at the Civic Centre, Victoria Island, Lagos, on Tuesday, April 29, 2025, approved the proposed final dividend payment of NGN4.00 per share, bringing the total dividend for the 2024 financial year to NGN5.00 per share, with a total value of NGN195.67 billion.The Founder and Chairman of Zenith Bank Plc, Jim Ovia, CFR, thanked the shareholders for their unflinching support and commitment, which have been responsible for the bank’s stellar performance over the years.

He noted that despite challenges globally in 2024, Zenith Bank was able to leverage the opportunities within the environment of each subsidiary to record a performance that solidly attests to the bank’s resilience as a brand.The Group Managing Director/Chief Executive Officer, Dame Dr. Adaora Umeoji, OON, expressed her appreciation to the shareholders for their commitment and support, promising quantum leap in dividends going forward.

According to her, “This is the first time that I am addressing the Annual General Meeting (AGM) in my capacity as the first female GMD/CEO of Zenith Bank. I would like to thank you for your confidence and support that has placed me in this position today”.

She further said that “Zenith Bank is committed to, not only meeting your expectations, but exceeding them. We are focused on running a very efficient and sustainable institution that is resilient and will ensure that our institution outlives many generations to come”.

Talking specifically about dividend, she emphasized that “If you look at our dividends trajectory, payments over the period have always increased and we will continue to maintain this record. We have successfully completed our recapitalization exercise, achieving 160% subscription. Therefore, we are not under any pressure to go back for the second time to raise funds. Zenith Bank has sufficient capital buffer to do business and we will continue to delight our shareholders. We are committed to growing our topline organically while adhering to our strict corporate governance culture.”

Dr. Faruk Umar, President of the Association of the Rights of Nigerian Shareholders (AARNS), applauded the Group Managing Director for her efforts in ensuring the growth of the bank’s financial indices.

He said, “We are very happy that the bank is paying us N5. Most importantly the GMD/CEO, Dame Dr. Adaora Umeoji, has done so well. In the past year, she won the award for the Banker of the Year which is very commendable, and all the bank’s indices have gone up; we are now experiencing trillions in profit against N676 billion the previous year, and the shareholder’s funds, the gross earnings – everything now is in trillions. I think this is very commendable. The bank has won so many awards – no bank in Nigeria has won such qualitative awards like they have.

They also surpassed the capitalization threshold of CBN by 160% – this is unprecedented. We are very happy with their performance.”Speaking on the dividend payout, Alhaji Otunba Mukhtar Mukhtar, Chairman, Trusted Shareholders Association of Nigeria, said “The consistency of Zenith Bank dividend payout has never been matched in Nigeria. Since the inception of this bank, they have kept giving shareholders a consistent dividend payout, and this has made shareholders to be richer, happier, and more excited at the hardwork, performance and commitment of the bank.

We are very happy. If you look at the Profit Before Tax (PBT) and the Profit After Tax (PAT), they have been able to cross the N1 trillion. threshold. They have given us a Profit Before Tax of N1.3 trillion, which is very commendable. The shareholders, as you have seen at the meeting, have expressed their happiness and joy about this performance. I am grateful to the Chairman, Dr. Jim Ovia, CFR, the Management and the Board for such an outstanding performance.”Ambassador Dr. Olatunde Okelana, the Balogun Olugbon of Orile- Igbon, Oyo State, also commented on the bank’s dividend payout. In his words, “Zenith Bank investment has been the best for me. I want to believe that whoever has not invested in Zenith Bank has lost. Their dividend policy is very palatable, very beautiful in the banking industry and the lady at the helm of affairs is performing wonderfully well. She is one of the best female CEOs in the banking Industry in Nigeria. I am a capitalist, so I invest where my money can give me beautiful returns. I want to tell you that Zenith Bank has been the best in the capital market and it is the best investment. Dr. Jim Ovia, CFR, the Founder & Chairman, is a benefit to mankind, he has done the best by giving us Zenith Bank. 99.9% of my savings is in Zenith Bank, because I have confidence in them and in the Management led by Dame Dr. Adaora. I want to encourage many Nigerians to invest in Zenith Bank so that they too can reap the fruit of their labor as soon as possible.

I am very happy to be a shareholder of this bank.Chief Timothy Adesiyan, President of the Shareholders Solidarity Association of Nigeria, praised the Chairman and Management of Zenith Bank for their consistent delivery of value to shareholders. He noted, “The dividend we received this year of N5 has been a promise which they have given to us at several forums which they have called at different times, and we thank them for not failing us in their promise. I am very proud to be a shareholder of Zenith Bank, and also their customer. The bank is a very reliable bank – if you keep your investments in Zenith Bank, you can go to sleep because there is always somebody there watching your investment for you.”The bank’s robust financial performance in 2024 alluded to its commitment to continually delivering value to its investors in spite of challenging macroeconomic conditions. Zenith Bank Group achieved a remarkable double-digit growth of 86% in gross earnings, from NGN2.13 trillion in the previous year to NGN3.97 trillion in 2024.

This was driven by a 138% increase in interest income, supported by investment in high-yield government securities, and growth in the Bank’s loan book. Customer deposits grew by 45%, reflecting the bank’s market leadership and customers’ trust. Total assets rose by 47%, underpinned by a strong liquidity position and effective balance sheet management.Zenith Bank’s track record of excellent performance has continued to earn the brand numerous awards including being recognized as the Number One Bank in Nigeria by Tier-1 Capital for the fifteenth consecutive year in the 2024 Top 1000 World Banks Ranking, published by The Banker Magazine. The Bank was also awarded the Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards for 2020, 2022 and 2024; and Best Bank in Nigeria for four times in five years, from 2020 to 2022 and in 2024, in the Global Finance World’s Best Banks Awards.

Business

Dangote Sugar grows turnover by 51%, to provide 75,000 jobs

Published

3 days ago

April 29, 2025

Sahara Weekly

Dangote is committed to operational sustainability

Dangote Sugar grows turnover by 51%, to provide 75,000 jobs

The chairman of Dangote Sugar Refinery Plc, Alikoa Dangote has revealed that the company’s turnover increased by 51 per cent to N665.6 billion for the year ended December 31, 2024, as against the corresponding figure of N441.5 billion recorded for the 2023 financial year.

Speaking at the 19th Annual General Meeting (AGM) on Tuesday, Mrs Bennedikter Molokwu, who chaired the AGM in an acting capacity, to represent the Aliko Dangote, noted that the company’s performance in 2024 was impacted by various macro-economic challenges, but that despite that, the future of the company is very bright.

Dangote said the company’s outlook for 2025 and beyond is to build a sustainable business, target the production of 1.5 million metric tonnes of refined sugar annually and at the same time generate over 75,000 employment opportunities, in the company’s value chain.

In the same vein, shareholders at the AGM, applauded the Board and management of Dangote Sugar Refinery Plc for maintaining its leadership in the Nigerian sugar industry, despite prevailing economic challenges.

The shareholders acknowledged Dangote Sugar as one of the largest sugar refineries in Sub-Saharan Africa and the leading player in Nigeria’s sugar sector. This position is underpinned by a combined installed refining capacity of 1.49 million tonnes per annum.

President of the Association for the Advancement of the Rights of Nigerian Shareholders, Dr. Farouk Umar, commended the company’s performance in its 2024 report. He highlighted that, despite numerous economic hurdles, the company has remained on a solid growth trajectory.

“Our turnover of N665.6 billion represents a 51% increase compared to N441.5 billion in the same period in 2023. Earnings per share rose from N6 to N15.80. In the current economic climate, many companies are struggling to grow revenues or maintain profitability. We must commend the Board for their efforts in expanding operations and increasing shareholder value. Alhaji Dangote has pledged that the company will make Nigeria self-sufficient in sugar production,” he said.

President of the De-Impressive Shareholders’ Association of Nigeria, Pastor Olagoke Samson Olusegun, praised the Chairman, Aliko Dangote, and the executive team for steering the company to higher levels of success.

Also speaking, the Chairman of the Trusted Shareholders Association of Nigeria (TSAN), Alhaji Mukhtar Mukhtar, acknowledged the economic difficulties facing businesses in Nigeria. He described Dangote Sugar’s performance as commendable and expressed shareholders’ confidence in continued profits and dividends.

Another shareholder, Mr. Patrick Ajudua, attributed the company’s sustained success to its adaptability and ability to weather economic headwinds. He congratulated the company on its 25th anniversary, remarking that Dangote Sugar has come of age and is poised for even greater achievements.

Several shareholders also lauded the company’s impact on broader society through its Corporate Social Responsibility (CSR) initiatives, which they said have benefited not only shareholders but Nigerians at large.

Group Managing Director/CEO of Dangote Sugar Refinery Plc, Ravindra Singh Singhvi, reiterated the company’s goal of achieving self-sufficiency in sugar production for Nigeria, with a target of producing 700,000 tonnes of sugar locally within the next five years.

Executive Director Hajiya Mariya Dangote noted that the company is expanding its Backward Integration Projects (BIPs) and commissioning a new power plant, among other projects, to enhance operational efficiency.

In the Chairman’s statement contained in the Annual Report & Accounts, Aliko Dangote stated that the company remained focused on its strategic initiatives during the year, despite persistent volatility and external pressures. He reaffirmed the company’s commitment to maintaining high standards of corporate governance.