BUA Cement Plc has secured a monumental $500 million financing package from the International Finance Corporation (IFC) to facilitate the establishment of two new, energy-efficient cement production lines.
This marks the largest-ever investment by IFC in northern Nigeria and represents a significant step towards green infrastructure and job creation in the region.
The financing package, unveiled during the Africa CEO Forum in Abidjan, Cote d’Ivoire, comprises a $160.5 million loan from IFC’s own account, a $94.5 million loan through the managed Co-Lending Portfolio Program (MCPP), and $245 million in parallel loans from syndication partners.
The African Development Bank (AfDB) contributes $100 million, the Africa Finance Corporation (AFC) provides $100 million, and the German Investment Corporation, Deutsche Investitions-und Entwicklungsgesellschaft (DEG), offers $45 million in parallel loans.
BUA Cement, Nigeria’s second-largest cement producer, will utilize these funds to develop new cement production lines in Sokoto State, Northern Nigeria.
These cutting-edge plants will integrate alternative fuel sources derived from waste and solar power, making them environmentally friendly and reducing carbon emissions.
Once completed, each production line is expected to manufacture approximately three million tons of cement annually, catering to the markets in Nigeria, Niger, and Burkina Faso.
BUA Group’s Chairman and Founder, Abdul Samad Rabiu, expressed delight in partnering with IFC and esteemed institutions in securing the $500 million facility.
“BUA is delighted to partner with IFC and other esteemed institutions in securing this $500 million facility to develop energy-efficient cement production capacity and strengthen our equipment and logistics capabilities in northern Nigeria. In line with our commitment to sustainability and ESG principles, this investment will create jobs and contribute to economic and infrastructural development within Nigeria and the greater Sahel region. We are particularly pleased to have successfully gone through the rigorous process with IFC, AfDB, AFC, and DEG, which validates our responsible business practices. By focusing on greener fuels and enhancing our equipment and logistics platform, BUA Cement is building a foundation for sustainable infrastructure growth and a more inclusive society,” Abdul Samad Rabiu said.
IFC’s Managing Director, Makhtar Diop, echoed these sentiments, highlighting the partnership’s potential to drive industrialization, job creation, and economic growth in northern Nigeria.
“We are pleased to join with our partners to support BUA with an investment that will boost industrialization, create jobs and deliver economic growth in northern Nigeria, a region with significant economic potential,” Diop said.
Additionally, the financing package will enable BUA Cement to gradually replace some of its diesel trucks with vehicles running on natural gas, thereby reducing emissions and contributing to a cleaner environment.
IFC will also provide guidance to BUA in developing a gender-inclusive workplace strategy, creating more opportunities for women across its operations.
