Lagos, Nigeria – September 15, 2025 – BUA Foods Plc, one of Nigeria’s leading conglomerates in the food manufacturing and processing industry, has announced a significant dividend payout of ₦13.00 per ordinary share for the financial year ended December 31, 2024. The decision, ratified at the company’s Fourth Annual General Meeting (AGM) held on September 11, 2025, underscores BUA Foods’ commitment to delivering value to its shareholders while reinforcing its position as a key player in Nigeria’s fast-moving consumer goods (FMCG) sector. The AGM, a pivotal event in the company’s corporate calendar, also saw the endorsement of several critical resolutions that highlight BUA Foods’ focus on strong governance, operational efficiency, and sustainable growth.
The announcement of the ₦13.00 dividend per share is a testament to the company’s robust financial performance in 2024, despite the challenging economic environment in Nigeria, characterized by inflationary pressures, foreign exchange volatility, and supply chain disruptions. This payout reflects BUA Foods’ confidence in its ability to generate consistent returns for investors, a move that is likely to bolster investor confidence in the company’s long-term strategy. The dividend declaration also aligns with the company’s track record of prioritizing shareholder value, a hallmark of its corporate philosophy since its listing on the Nigerian Exchange Limited (NGX) in 2022.
Financial Performance and Shareholder Value
At the Fourth AGM, shareholders were presented with the company’s audited financial statements for the 2024 financial year, along with comprehensive reports from the board of directors, external auditors, and the audit committee. These documents provided a detailed overview of BUA Foods’ operational and financial achievements, offering transparency into the company’s performance. While specific financial metrics such as revenue, profit margins, and earnings per share were not disclosed in the announcement, the approval of a ₦13.00 dividend per share suggests that BUA Foods maintained strong profitability and cash flow generation in 2024, enabling it to reward investors generously.
The decision to declare such a substantial dividend payout is particularly noteworthy given the broader economic challenges in Nigeria. In 2024, the country faced significant macroeconomic headwinds, including double-digit inflation, a depreciating naira, and rising input costs for manufacturers. These factors have put pressure on the profitability of many companies in the FMCG sector, as raw material costs and logistics expenses have soared. However, BUA Foods’ ability to sustain a high dividend payout signals its operational resilience and strategic foresight in navigating these challenges. The company’s diversified portfolio, which includes products such as flour, pasta, rice, sugar, and edible oils, likely played a role in cushioning it against market volatility.
The dividend announcement is also a strategic move to maintain investor loyalty in a competitive market. By offering a ₦13.00 per share payout, BUA Foods is signaling its financial stability and commitment to rewarding shareholders, which is particularly important for institutional investors and retail shareholders seeking reliable income streams. This move is likely to enhance the company’s attractiveness on the NGX, where it competes with other heavyweights in the consumer goods sector, such as Dangote Sugar Refinery Plc and Nestlé Nigeria Plc.
Governance and Leadership Continuity
In addition to the financial resolutions, the AGM addressed key governance matters that reflect BUA Foods’ adherence to best practices in corporate governance. One of the significant decisions was the re-election of two directors, Kabiru Rabiu and Chimaobi Madukwe, who had retired by rotation in accordance with the company’s articles of association and the Nigerian Code of Corporate Governance. Their re-election ensures continuity in leadership and strategic direction, as both directors bring extensive experience to the board.
Kabiru Rabiu, a key figure in the BUA Group, has been instrumental in driving the company’s growth and expansion initiatives. His re-election underscores the confidence that shareholders have in his leadership and vision for BUA Foods. Similarly, Chimaobi Madukwe’s re-appointment reflects his contributions to the company’s governance framework and operational efficiency. The retention of experienced directors is critical for maintaining stability, especially in a dynamic industry where adaptability and strategic decision-making are essential for success.
The board was also authorized to determine the remuneration of the company’s external auditors for the 2025 financial year. This resolution is a standard practice in corporate governance, ensuring that the auditors’ fees are set in a transparent and accountable manner. The external auditors play a crucial role in verifying the accuracy of BUA Foods’ financial statements, providing assurance to shareholders and regulators that the company’s financial reporting is reliable and compliant with international standards.
Strengthening Oversight Through the Audit Committee
A key highlight of the AGM was the constitution of a new statutory audit committee, which is tasked with overseeing the company’s financial reporting and internal control processes. The committee comprises three shareholder representatives—Musa Bichi, Eric Akinduro Akinnifesi, and Nwokocha Innocent Peters—alongside two board nominees, Oluyemisi Lowo Adesola and Chimaobi Madukwe. This composition ensures a balanced representation of shareholder and board interests, fostering accountability and transparency in the company’s operations.
The audit committee’s role is critical in ensuring that BUA Foods adheres to regulatory requirements and maintains robust internal controls. By including shareholder representatives, the company demonstrates its commitment to inclusive governance, giving investors a direct voice in overseeing its financial integrity. The presence of board nominees such as Oluyemisi Lowo Adesola and Chimaobi Madukwe further strengthens the committee’s expertise, as both individuals bring a deep understanding of the company’s operations and strategic objectives.
Transparency in Managerial Compensation
Another significant resolution passed at the AGM was the ratification of the disclosure of managerial pay and the approval of remuneration for non-executive directors. This move aligns with global best practices in corporate governance, which emphasize transparency in executive compensation to prevent conflicts of interest and ensure accountability. By disclosing managerial pay, BUA Foods provides shareholders with clarity on how its leadership is rewarded, fostering trust and confidence in the company’s governance practices.
The approval of non-executive directors’ remuneration is equally important, as it ensures that these directors are fairly compensated for their oversight role without compromising their independence. Non-executive directors play a critical role in providing objective guidance to the board, and their remuneration must strike a balance between attracting qualified individuals and avoiding excessive payouts that could raise concerns among shareholders.
Related-Party Transactions and Regulatory Compliance
Shareholders also granted a general mandate authorizing the board of directors to enter into recurrent related-party transactions in the ordinary course of business. These transactions, which are common in conglomerates like BUA Foods, involve dealings with affiliated entities within the broader BUA Group, such as subsidiaries or sister companies. The mandate stipulates that such transactions must be conducted on normal commercial terms and comply with regulatory requirements, ensuring fairness and transparency.
This resolution is particularly significant given the scrutiny that related-party transactions often attract from regulators and investors. By securing shareholder approval for these dealings, BUA Foods demonstrates its commitment to adhering to the Nigerian Code of Corporate Governance and the rules of the Securities and Exchange Commission (SEC). The mandate also provides the board with the flexibility to pursue strategic partnerships and transactions that enhance operational efficiency and drive growth, without requiring separate approvals for each deal.
Addressing Director Age Disclosure
In line with corporate governance practices, BUA Foods disclosed that one of its directors, Finn Arnoldsen, has attained the age of 70. This disclosure is a requirement under Nigerian corporate governance regulations, which mandate that companies inform shareholders when a director reaches this age milestone. The announcement reflects BUA Foods’ commitment to transparency and compliance with regulatory standards, ensuring that shareholders are fully informed about the composition of the board.
While the disclosure does not necessarily imply any changes to Finn Arnoldsen’s role, it serves as a reminder of the company’s adherence to governance protocols. It also highlights the importance of succession planning, as boards must ensure a balance between experienced leadership and fresh perspectives to sustain long-term growth.
BUA Foods’ Strategic Positioning
The resolutions passed at the Fourth AGM reflect BUA Foods’ broader strategy to strengthen its market position and deliver sustainable value to stakeholders. The company, a subsidiary of the BUA Group, has emerged as a dominant player in Nigeria’s FMCG sector since its establishment. With a diverse portfolio that spans flour milling, pasta production, rice processing, sugar refining, and edible oil production, BUA Foods caters to the growing demand for high-quality food products in Nigeria and beyond.
The company’s success can be attributed to its vertically integrated business model, which allows it to control key aspects of its supply chain, from raw material sourcing to distribution. This integration has enabled BUA Foods to mitigate the impact of external shocks, such as rising commodity prices and supply chain disruptions, which have affected many of its peers. By investing in state-of-the-art manufacturing facilities and leveraging economies of scale, the company has maintained its competitiveness in a crowded market.
BUA Foods’ listing on the NGX in 2022 was a significant milestone, as it provided the company with access to capital markets and enhanced its visibility among investors. Since then, the company has consistently demonstrated its ability to deliver strong financial performance, as evidenced by the ₦13.00 dividend payout for 2024. This achievement is particularly impressive given the challenging operating environment in Nigeria, where manufacturers face rising energy costs, foreign exchange scarcity, and logistical bottlenecks.
Economic Context and Industry Outlook
The Nigerian FMCG sector, while lucrative, is highly competitive and sensitive to macroeconomic conditions. In 2024, the sector grappled with inflation rates exceeding 30%, driven by rising food and energy prices. The depreciation of the naira further exacerbated the cost of imported raw materials, putting pressure on manufacturers’ margins. Despite these challenges, BUA Foods’ ability to maintain profitability and declare a substantial dividend reflects its operational efficiency and strategic resilience.
Looking ahead, the company is well-positioned to capitalize on Nigeria’s growing population and increasing demand for processed food products. With a population of over 200 million and a youthful demographic, Nigeria presents significant growth opportunities for FMCG companies. BUA Foods’ focus on affordable, high-quality products aligns with the needs of Nigeria’s price-sensitive consumers, while its investments in capacity expansion and innovation position it to capture a larger share of the market.
The company’s commitment to sustainability and corporate social responsibility (CSR) also enhances its reputation among consumers and investors. By supporting local farmers, promoting food security, and investing in community development initiatives, BUA Foods is contributing to Nigeria’s broader economic and social goals. These efforts not only strengthen its brand but also align with the growing emphasis on environmental, social, and governance (ESG) criteria among global investors.
Implications for Shareholders and Stakeholders
The outcomes of the Fourth AGM have far-reaching implications for BUA Foods’ shareholders and stakeholders. The ₦13.00 dividend payout provides immediate financial benefits to investors, reinforcing the company’s attractiveness as a dividend-paying stock. The re-election of experienced directors and the constitution of a robust audit committee signal a commitment to strong governance, which is likely to enhance investor confidence.
The approval of related-party transactions and the transparency in managerial pay further demonstrate BUA Foods’ dedication to accountability and fairness. These measures are particularly important in a market like Nigeria, where corporate governance lapses have historically undermined investor trust in some companies. By adhering to best practices, BUA Foods is positioning itself as a trusted and reliable partner for both domestic and international investors.
For employees, customers, and other stakeholders, the AGM resolutions reflect a company that is focused on long-term sustainability and operational excellence. The continuity in leadership and the emphasis on governance ensure that BUA Foods remains well-equipped to navigate the complexities of the FMCG sector, delivering value to all its stakeholders.
Conclusion
The Fourth Annual General Meeting of BUA Foods Plc, held on September 11, 2025, marked a significant milestone in the company’s journey to solidify its position as a leader in Nigeria’s FMCG sector. The approval of a ₦13.00 dividend per share, the re-election of key directors, the constitution of a new audit committee, and the authorization of related-party transactions underscore the company’s commitment to shareholder value, transparency, and operational efficiency. In a challenging economic environment, BUA Foods’ ability to deliver strong financial performance and maintain robust governance practices is a testament to its resilience and strategic vision.
As Nigeria’s FMCG sector continues to evolve, BUA Foods is well-positioned to capitalize on growth opportunities while navigating the challenges of a dynamic market. With a diversified portfolio, a vertically integrated business model, and a focus on sustainability, the company is poised to deliver long-term value to its shareholders and contribute to Nigeria’s economic development. The resolutions passed at the AGM not only reflect BUA Foods’ current strengths but also lay the foundation for its future success in an increasingly competitive industry.
