Abdul Samad Rabiu, who chairs BUA Group, a rapidly growing industrial and manufacturing conglomerate in Africa, has achieved a significant milestone, with his net worth now standing at an impressive $7 billion. This firmly establishes his status as one of the most affluent individuals on the African continent.
Forbes reports that Rabiu, currently positioned as Nigeria’s second-richest person and the fifth-richest in Africa, has witnessed a remarkable increase in his net worth, rising by $500 million within the last month, from $6.5 billion on September 11 to $7 billion.
It’s important to highlight that Bloomberg’s estimate of Rabiu’s net worth is slightly lower, at approximately $5.91 billion, considering approximately $2.98 billion in various liabilities.
BUA Cement skyrocketed the surge
The key catalyst behind this substantial boost in Rabiu’s wealth can be attributed to the remarkable performance of his 96.29 percent ownership in BUA Cement, the flagship entity within BUA Group. The shares of this leading cement manufacturing company have seen a substantial surge, climbing from N96.15 ($0.125) on September 11 to N105.8 ($0.137) at the time of this report.
The substantial uptick in BUA Cement’s shares closely aligns with the company’s recent announcement of a noteworthy reduction in ex-factory cement prices. This strategic pricing adjustment is poised to have significant implications for the industry’s competitive environment, ultimately favoring consumers and potentially influencing market dynamics.
This price reduction lowers the ex-factory cost of a bag of BUA Cement to N3,500 ($4.55), clearly demonstrating the company’s dedication to providing competitive pricing. While this decision may impact the company’s revenue per tonne, it is projected to enhance BUA Cement’s market share.
How BUA Cement expanded its production
With its expanded production capacity, BUA Cement is well-positioned to seize a more substantial portion of the cement market. This enhanced market presence has the potential to generate a significant upswing in the group’s revenue and earnings. The recent surge in BUA Cement’s share price on the Nigerian Exchange reflects the optimistic sentiment surrounding these prospects.
Furthermore, BUA Cement has revealed that, following the completion of its ongoing plant construction projects, which are slated to increase production volumes to 17 million metric tonnes per annum, the company intends to conduct another pricing assessment in accordance with its previous announcements. This pricing review is anticipated to occur in the first quarter of 2024.
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