BUA Cement signs $240 mil deal with China's CBMI for new 3 million mt plant in Nigeria

Nigeria's BUA Cement has signed a $240 million agreement with China's CBMI to construct a new 3-million metric tons/year cement production line in Sokoto, expanding the company's total annual capacity to 20 million mt and positioning it to serve both domestic infrastructure demand and regional export markets across West Africa's landlocked countries, the company said in a statement Jan. 21.

The ultra-modern facility will be strategically positioned as the only cement plant in Nigeria's North-West region, providing BUA Cement with enhanced access to neighboring markets while supporting the country's infrastructure development under recent government reforms that have stimulated construction demand. The project includes not only the cement line but also a power plant and other key facilities, with completion targeted within 20 months, the company said.

"With completion of the Sokoto line targeted in 20 months, BUA Cement is excited about the opportunities ahead and confident that this project will strengthen its position as a leader in the Nigerian cement industry and across the region," the statement said.

The Sokoto expansion builds on BUA Cement's 15-year partnership with CBMI, which has previously delivered 14 million mt of cement production capacity across the company's facilities in Obu, Edo state, and Sokoto. The new line will complement BUA Cement's existing portfolio of BUA Portland Limestone Cement and Sokoto Portland Limestone Cement products.

To support the expansion, BUA Cement's 700 mt/day mini LNG plant in Kogi state, scheduled for completion later this year, will supply clean energy to power both the new Sokoto line and the existing production facilities. This integrated approach aims to improve operational efficiency while reducing emissions and supporting sustainable industrial growth in Nigeria's cement sector.

The investment aligns with recent government reforms that have created a more favorable environment for industrial operations and stimulated infrastructure project demand. BUA Cement expects the enhanced capacity will strengthen its position as a regional leader while creating employment opportunities and supporting critical infrastructure development across Nigeria and neighboring West African markets.