BUA Cement Plc has signed an agreement with China-based CBMI to construct a new ultra-modern 3-million-ton-per-annum cement production line at its Sokoto plant, marking a major expansion that will strengthen cement supply across Northern Nigeria.
The $240 million project covers the construction of cement line six, a dedicated power plant and supporting facilities. Upon completion, BUA Cement’s total production capacity is expected to rise to 20 million tons annually, reinforcing the company’s position in Nigeria’s cement industry and improving access to locally produced cement for infrastructure developers, contractors and small construction businesses.
The agreement deepens BUA Cement’s long-standing partnership with CBMI, which spans over 15 years. During this period, CBMI has delivered cement production lines with a combined capacity of 14 million tons across BUA’s plants in Obu, Edo State, and Sokoto. The new investment further consolidates this collaboration while expanding industrial capacity in the North-West.
BUA’s Sokoto plant remains strategically important as the only cement production facility in Nigeria’s North-West zone. The new line is expected to ease supply constraints in the region, reduce transportation costs for builders and developers, and support construction-related MSMEs that rely heavily on stable cement prices and availability.
Energy for the expanded operations will be supported by BUA’s 700-ton-per-day mini LNG plant in Kogi State, which is scheduled for completion later this year. The LNG facility will supply cleaner and more reliable energy to the new Sokoto cement line as well as existing lines, improving operational efficiency, lowering emissions and supporting more sustainable industrial growth.
Speaking on the investment, the founder and Chief Executive of BUA Group, Abdul Salam Rabiu, said the expansion comes at a pivotal moment for Nigeria’s economy, shaped by recent reforms introduced by the administration of President Bola Tinubu. He noted that the reforms have improved the ease of establishing and operating factories while stimulating demand for infrastructure and construction projects nationwide.
According to him, the policy environment has created stronger incentives for long-term industrial investments, and BUA Cement is positioning itself to support national development through increased production capacity, job creation and the supply of materials critical to housing and infrastructure delivery.
Industry observers note that the expansion could have ripple effects across the construction value chain, benefiting transporters, distributors, artisans and small contractors, particularly in Northern Nigeria where cement supply has historically been limited.
With the new Sokoto line and supporting energy infrastructure, BUA Cement is expected to play a bigger role in meeting domestic demand while contributing to industrial growth and regional economic development.
