FROM DUST TO DEVELOPMENT: HOW BUA CEMENT IS BUILDING A NEW ERA IN PARTNERSHIP WITH EDO STATE

~ Jerry Wright-Ukwu

In the quiet, lush landscapes of Okpella, Edo State, a visible transformation is underway. Once a sleepy community, it has become a bustling centre of industrial activity, with BUA Cement Plants at its heart. This is not just a story of cement production; it is a saga of growth, resilience, and an enduring partnership between BUA Cement PLC and the resilient people of Edo State.

It all began in 2008, when BUA Group, under the leadership of Abdul Samad Rabiu, acquired the struggling Edo Cement Company during Nigeria’s Federal Government-led divestment and privatisation exercise. The Edo Cement plant was barely functional, with antiquated equipment and limited output.

BUA Cement’s journey began in 2008 when the BUA Group acquired the struggling Edo Cement Company. At the time, the plant was operating well below capacity, saddled with outdated equipment, limited output, and inefficiencies. For many, it was a symbol of lost potential. But for Rabiu, it was an opportunity to redefine what was possible for Edo State’s industrial landscape – a chance to turn it into a powerhouse. By 2015, after investing over $1 billion, the first line of the Obu Cement Plant was operational, and it quickly became one of Africa’s most advanced cement facilities.

Since then, the company’s financial fortunes have mirrored its operational growth. In 2019, BUA Cement consolidated its operations by merging its subsidiaries, including the Cement Company of Northern Nigeria (CCNN) and Obu Cement Company. The merger streamlined operations and positioned BUA Cement as Nigeria’s second-largest cement producer, with a market share rivalling industry leader Dangote Cement.

The next milestone came in January 2020 when BUA Cement was listed on the Nigerian Exchange Group (NGX). With an initial market capitalisation of ₦1.18 trillion, it instantly became one of the most valuable companies on the exchange. The listing unlocked access to capital markets, enabling BUA Cement to fund expansions and further strengthen its balance sheet.

Today, BUA Cement’s financial performance is nothing short of stellar. Despite challenges in Nigeria’s broader economic landscape, the company has consistently delivered strong revenue growth and profitability. In the most recent fiscal year, BUA Cement reported revenues exceeding ₦300 billion, driven by increased production capacity and robust demand for cement in Nigeria’s booming construction sector.

While BUA Cement’s financial success is impressive, its contributions to Edo State’s economy go far beyond corporate earnings. The company is one of the state’s largest taxpayers, significantly contributing to Edo’s internally generated revenue (IGR).

Challenges, Settlements, and a Renewed Partnership

Despite its success, BUA Cement’s journey in Edo State hasn’t been without challenges. Disputes over ownership, royalties, and mining leases led to legal battles that threatened to overshadow the company’s contributions. These disputes culminated in the 2019 Terms of Settlement, a landmark agreement that resolved all outstanding issues and paved the way for collaboration.

Under the settlement, BUA Cement agreed to pay ₦5 billion in total, including an upfront payment of ₦2 billion and six monthly instalments of ₦500 million. The company also purchased the remaining shares in Edo Cement from minority stakeholders, consolidating its ownership.

“This settlement wasn’t just about resolving disputes,” says a senior government official. “It was about setting the stage for growth for BUA, Edo State, and our people.”

For years, legal battles cast a shadow over what was otherwise a story of progress. The 2019 Terms of Settlement with the Edo State Government, entered into judgment by the courts, ended years of litigation and legal battles. These payments were not merely obligations; they became the foundation for renewed trust and collaboration. The settlement not only resolved the disputes but also bolstered the state’s fiscal capacity, enabling investments in infrastructure, healthcare, and education, thereby benefiting the community at large.

Building Communities, Not Just Cement Plant

But BUA Cement’s impact goes far beyond the balance sheet. For the people of Okpella and Edo State, it has meant jobs, empowerment, and a sense of belonging. Currently, over 2,000 people are directly employed by the company, with thousands more benefiting indirectly. Women like Efe, who lives in the state capital, Benin, and now runs a thriving cleaning services business, speak of opportunities that were once unimaginable. Thanks to the bustling activity around the plant, farmers like Azeez now have a reliable market for their goods. These are just some of the stories of transformation driven by BUA Cement’s presence.

“BUA is not just a company,” says a community leader in Okpella. “It’s a partner in our growth. We have a community development agreement with them which they faithfully keep to”

BUA’s Corporate Social Responsibility (CSR) efforts have also transformed the community. Roads that were once impassable now connect villages and markets. Schools have been renovated, scholarships awarded, and health centers established. Clean water, once a luxury, now flows in homes across Okpella. Additionally, BUA Cement has initiated programs to support local entrepreneurs, promote education, and improve healthcare facilities in the region.

“We don’t just produce cement here,” says a senior executive at BUA Cement. “We build communities.”

The Future of BUA Cement in Edo State

However, beyond production targets and financial milestones, BUA Cement envisions its role as a partner in Edo State’s progress, reaffirming its commitment to the state. “We’re not just here to do business,” says a senior executive at BUA Cement. “We’re here to build a future—one where Edo State thrives alongside us, a future that we are committed to shaping and nurturing.”

As Nigeria’s infrastructure needs to grow, so does the role of BUA Cement. Plans are already underway to expand production capacity to 20 million metric tonnes per annum by 2027, a move that will create even more jobs and economic opportunities. But expansion isn’t just about scaling up; it’s about doing so responsibly. Environmental sustainability remains a priority, with investments in cleaner energy and advanced technologies to reduce emissions, minimise ecological footprint, and ensure its operations align with global sustainability standards.

“We see Edo State as a partner, not just a location for our business,” the executive adds. “Our investment here is long-term. We want to grow together, to ensure that our success translates to prosperity for everyone—government, communities, and businesses alike.”

For residents of Okpella and beyond, BUA Cement is more than a corporate giant; it’s a neighbour, a partner, and a symbol of what is possible when business and community grow together. With its strong financial foundation, unwavering commitment to development, and vision for the future, BUA Cement is not just producing cement—it’s building the foundations of prosperity in Edo State.

For the Edo State Government, the relationship with BUA Cement represents a model for how public and private sectors can collaborate for mutual benefit. While the challenges of the past cannot be forgotten, they serve as a reminder of what can be achieved when both sides commit to a shared vision.

As Okpella continues to grow, the story of BUA Cement is a powerful example of what is possible when vision meets partnership. It’s not just about the cement; it’s about building a future where industry and community thrive side by side. For the people of Edo State, BUA Cement is more than a business—it’s a beacon of what progress can look like, and as the company looks to the future, one thing is clear: its commitment to Edo State remains unshaken. Together, they will continue to write a story of resilience, growth, and shared success.

Fidelity Bank Supports Improved Maternal Health in Lagos

Leading Financial Institution, Fidelity Bank Plc, has donated maternity kits to 30 pregnant women at Mushin Primary Health Centre (PHC), Lagos.

The donation, organized by the Great Minds Inductees Class, was made possible through the Fidelity Helping Hands Program (FHHP), a Corporate Social Responsibility (CSR) initiative by Fidelity Bank Plc aimed at promoting staff involvement in community development.

Through the FHHP, staff across the bank’s business locations identify projects that benefit their immediate community and gather funds to implement them. The bank’s management then matches this contribution with an equivalent amount and allocates it for the chosen projects.

Speaking at the handing over ceremony, the Divisional Head, Brand and Communications Division, Fidelity Bank Plc, Dr Meksley Nwagboh, noted that, “The project was borne out of the need to support pregnant women by providing them with essential materials for a safe delivery.”

Nwagboh noted that, “Maternal mortality remains a significant public health challenge in Nigeria, with the country accounting for a substantial proportion of global maternal deaths. In fact, a 2023 United Nations report indicate that nearly 28.5% of global maternal deaths occur in Nigeria. This is an alarming statistic and as a bank given to improving the welfare of our host communities, we deemed it fit to support initiatives to address this challenge in the Mushin community with this donation.”

Appreciating the bank’s gesture, the Medical and Health Officer for Mushin Local Government Area, Dr. Kayode Odufuwa, noted that, “This intervention by Fidelity Bank will help reduce maternal mortality and encourage more women from less-privileged backgrounds to register for antenatal care.”

“On behalf of the Chairman of Mushin LGA, Mr. Emmanuel Bamgboye, we want to express our heartfelt gratitude to Fidelity Bank for extending its donation of maternity kits to pregnant women at this center. We appeal for continued collaboration with the Bank to further strengthen healthcare services within the area,” he stated.

On her part, the Apex Nurse and Deputy Director of Nursing Services in Mushin LGA, Mrs. Bolanle Odunlami, poured encomiums on Fidelity Bank for their generosity while noting that, “The donation is a much-needed relief for many mothers who are unable to afford essential delivery kits. Fidelity Bank has truly shown empathy by coming to the aid of our patients, and for that, we are extremely grateful,”.

One of the beneficiaries, Mrs. Mary Olusanya, expressed her heartfelt appreciation for the bank’s support. “I appreciate Fidelity Bank for helping us. Many pregnant women cannot afford these kits, but this donation ensures that we can have safe deliveries and better healthcare,” she said.

Ranked as one of the best banks in Nigeria, Fidelity Bank is a full-fledged customer commercial bank with over 8.3 million customers serviced across its 251 business offices in Nigeria and the United Kingdom, as well as on digital banking channels. The bank has won multiple local and international awards, including the Export Finance Bank of the Year at the 2023 BusinessDay Banks and Other Financial Institutions (BAFI) Awards, the Best Payment Solution Provider Nigeria 2023, and Best SME Bank Nigeria 2022 by the Global Banking and Finance Awards; Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence 2023; and Best Domestic Private Bank in Nigeria by the Euromoney Global Private Banking Awards 2023.