Abdul Samad Rabiu says improved access to foreign exchange has made business planning easier, but calls for cheaper long-term financing, policy stability and greater industrial investment to drive Nigeria’s next phase of growth……
BUA Group Chairman Abdul Samad Rabiu has said Nigeria’s foreign exchange reforms have improved businesses’ access to dollars, reducing their dependence on direct allocations from the Central Bank of Nigeria (CBN).
Speaking at the 32nd Nigerian Economic Summit on Monday, Rabiu recalled how companies previously had to seek foreign exchange from the apex bank regularly to import machinery and raw materials, creating uncertainty for businesses planning major investments.
“In the past, we had to make a pilgrimage every two weeks to the Central Bank of Nigeria here in Abuja,” he said.
According to the billionaire industrialist, the situation has changed following reforms that allow businesses to source foreign exchange through the market at prevailing rates rather than rely on direct CBN allocations.
“Today, I hardly need to go to CBN. In fact, since Yemi Cardoso assumed office as CBN governor, I think I’ve maybe seen him three or four times because I don’t need him for foreign exchange allocation. That is the truth,” he said.
Rabiu said the previous system made it difficult for companies to commit to large-scale industrial projects because access to foreign currency was uncertain.
“Imagine trying to build or set up a billion-dollar industrial investment under those circumstances.”
He argued that businesses would rather operate in a transparent foreign exchange market, where they can plan around prevailing rates, than depend on an official exchange rate that offers little value when dollars are unavailable.
“Certainty gives businesses the confidence to invest,” he said.
Rabiu described foreign exchange liberalisation as one of several major policy changes introduced over the past three years, alongside petrol subsidy removal and fiscal and tax reforms.
However, he acknowledged that the measures had “come with real costs for households and businesses”, noting that high borrowing costs, infrastructure deficits and pressure on household incomes remain significant challenges.
He said Nigeria must now focus on translating economic reforms into tangible improvements in production, investment and living standards.
“We must move from reform to results, from stabilization to expansion, and from economic adjustment to shared prosperity,” he said.
Beyond foreign exchange reforms, the BUA chairman called for a broader expansion of Nigeria’s industrial base, arguing that the country needs more businesses capable of growing from small enterprises into major employers and investors.
He urged policymakers to create conditions that would encourage businesses to invest in manufacturing, agriculture, mining and other productive sectors.
“The question we must ask ourselves is not simply how BUA can continue to grow. It is how Nigeria can create another 100 BUAs,” he said.
Rabiu identified access to affordable, long-term financing as one of the biggest barriers to industrial development, explaining that major manufacturing investments often require between 10 and 20 years to reach their full potential.
“You cannot build a strong industrial economy primarily with expensive short-term finance,” he said.
He called on pension funds, insurance companies, commercial banks, development finance institutions and capital market operators to develop funding options suited to long-term productive investments.
According to him, industrial expansion requires patient capital that allows businesses to build facilities, expand capacity and recover their investments over an extended period.
Rabiu also stressed the need for predictable government policies, arguing that uncertainty makes it difficult for companies to commit resources to projects with long investment horizons.
“We cannot expect businesses to make 20-year investments if they cannot plan with confidence beyond the next few years,” he said.
Rabiu pointed to Nigeria’s cement industry as an example of how investment in domestic processing can reduce import dependence and strengthen local manufacturing.
He said Nigeria previously imported almost 80 per cent of its cement requirements but has since achieved self-sufficiency and become a net exporter.
“The limestone has always been there. What changed was our decision to invest in processing that limestone into cement right here in Nigeria,” he said.
He said BUA was pursuing the same approach through its cement operations in Sokoto and Edo states, alongside its integrated sugar project in Lafiagi, Kwara State.
The Lafiagi project combines sugar-cane cultivation with refining, ethanol production and power generation, an approach intended to connect agricultural production with industrial processing.
Rabiu also highlighted the scale of BUA’s listed businesses, BUA Foods and BUA Cement, saying their combined market capitalisation exceeds $17 billion.
The group is expanding its operations in flour milling, pasta, noodles, edible oils, rice milling and animal feed production.
According to Rabiu, the projects are expected to be completed in 2027 and will double production capacity.
He said such investments demonstrate the potential of domestic manufacturing to create jobs, strengthen supply chains and reduce reliance on imported products.
The industrialist also proposed a new economic accord involving government, businesses and citizens to establish a common framework for Nigeria’s economic development.
He said the agreement should be built around five commitments: policy stability, productive investment, human capital development, long-term capital and shared prosperity.
Under the proposed arrangement, government would provide a stable policy environment and the necessary conditions for investment, while businesses would expand production, create jobs and equip workers with relevant skills.
Rabiu argued that economic growth must be driven by higher productivity rather than population growth alone.
“Population alone does not create prosperity. Productivity does,” he said.
He said Nigeria would need to improve the efficiency of its workforce and expand productive capacity to translate its large population into an economic advantage.
Rabiu also urged Nigeria to take greater advantage of the African Continental Free Trade Area (AfCFTA) by positioning the continent as a major market for locally manufactured goods and services.
He said Nigerian businesses needed improved transport connections, more efficient ports, seamless payment systems and easier movement of businesspeople across African borders to compete effectively.
According to him, reducing these barriers would help local manufacturers reach more customers, expand production and benefit from a larger regional market.
His remarks come as Nigeria continues to pursue economic reforms intended to stabilise the economy, attract investment and strengthen domestic production.
Rabiu maintained that sustaining these efforts would require a shift towards affordable long-term financing, consistent policies and stronger cooperation between government and the private sector to turn economic adjustments into broader prosperity.
