Billionaire Abdulsamad Rabiu Set To Build Large Refinery In Nigeria

• Alfa Laval and the BUA Group have partnered to build a cutting-edge palm oil refinery in Nigeria
• The two parties' agreement represents a big step toward expanding Nigeria's palm oil market supply
• It is expected that the new fractionation plant and refinery will enhance domestic processing in the country

The Food & Water Division of Swedish company Alfa Laval has teamed up with Nigerian billionaire Abdul Samad Rabiu's BUA Group, one of Africa's fastest-growing industrial conglomerates, to construct a state-of-the-art palm oil refinery in Nigeria.

The deal, which was signed by Panjak Maheshwari, vice president of Alfa Laval, and Abdul Samad Rabiu, founder and executive chairman of BUA Group, is a significant step in increasing Nigeria's supply of palm oil.

With a 1,000-ton-per-day capacity, Billionaire.africa reported that the new refinery and fractionation plant is anticipated to improve domestic processing and lessen the nation's dependency on imported palm oil.

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Facility to boost economic growth

The site would promote sustainable manufacturing and agricultural practices in addition to bolstering Nigeria's drive for industrial self-sufficiency. It's a component of a larger initiative to boost economic growth in the palm oil industry, add value locally, and create jobs.

This project is the latest in a line of bold actions by Abdul Samad Rabiu, Nigeria’s third-richest man with a net worth of $4.9 billion. In December 2024, BUA Group expanded its activities with the introduction of a 2,400-ton-per-day Plaster of Paris (P.O.P.) and plasterboard plant in Port Harcourt.

At about the same time, the business made a significant investment to strengthen its supply chain by partnering with Austria's Starlinger & Co. to establish a top-notch packaging facility that could produce about 600 million polypropylene bags a year.

Following those advancements, the new palm oil refinery expands BUA Group's expanding presence in Nigeria's manufacturing and food sectors. It also confirms the status of BUA Foods Plc — the group’s food business unit — as a leader in the market.

BUA Foods sees big profit

Sugar refining, oil milling, flour, pasta, and rice production are just a few of the major operations that BUA Foods operates. Abdul Samad Rabiu and his son, Isyaku Naziru Rabiu, jointly own a commanding 94.25 percent stake in the company, which is currently valued at $4.9 billion on the Nigerian Exchange (NGX).

Abdul Samad owns 92.63 percent of the company, while Isyaku owns 1.62 percent, or more than 291 million shares.

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With a profit that more than doubled from N112.1 billion ($72.9 million) in 2023 to N266 billion ($173 million) in 2024, the corporation produced impressive results for its fiscal year. Strategic pricing modifications and consistent demand for its products were the main drivers of this success.

From N729.44 billion ($484.8 million) to N1.53 trillion ($1.02 billion), revenue increased by more than 109%. Sales of reinforced sugar increased by 67 percent to N567.39 billion ($377.1 million), while flour was a notable performer, generating N544.88 billion ($362.2 million).

Other product lines that contributed significantly to the company's record-breaking performance included non-fortified sugar, molasses, semolina, maize, pasta, and wheat bran.

BUA Foods is still in a strong position to satisfy Nigeria's growing need for reasonably priced, superior food items as it develops and broadens its product line.

Nigerian billionaire's company set to build new facility

Legit.ng reported that one of the top producers of food in Nigeria, BUA Foods Plc, has partnered with IMAS, a well-known Turkish manufacturer of flour milling equipment, to construct four cutting-edge wheat and flour milling facilities with a combined daily milling capacity of 3200 tonnes.

After making its debut on the Nigerian exchange (NGX), BUA Foods has made a strategic plan to expand into new markets, which includes this game-changing move.

It is anticipated that the new factories will increase manufacturing capacity and supply more high-quality products, helping Nigeria handle its food difficulties.