BUA Foods is set to distribute a record N504 billion dividend to shareholders, with founder and chairman Abdul Samad Rabiu expected to receive approximately $323 million.
The proposed dividend payout is one of the largest in Nigerian corporate history, representing a significant increase from the N13 distributed per share in 2024 to N28 per share for the 2025 financial year.
The dividend payout is driven by BUA Foods’ strong financial performance, with profit after tax nearly doubling in 2025.
The company’s revenue climbed to roughly N1.77 trillion to N1.80 trillion, driven by growth in its core businesses, including sugar, flour, and pasta.
Rabiu, who owns 90% of the company, will receive approximately N452.8 billion, or $323.4 million gross, from the dividend payout. After Nigeria’s 10% withholding tax on dividends, his net payout would be approximately N407.5 billion, or $291.1 million.
While the dividend payout signals confidence in BUA Foods’ balance sheet and cash generation, it also raises expectations.
Shareholders will want to understand whether the 2025 profit base is sustainable, given the fragile macroeconomic environment in Nigeria.
BUA Foods has delivered impressive growth in recent years, with the dividend payout reflecting its strong performance.
The company’s focus on consumer staples, including sugar, flour, and pasta, has driven revenue growth and positioned it as a key player in Nigeria’s food supply chain.
