Jan 22, 2026
BUA Cement Signs $240m Deal with CBMI to Hit 20m Tonnes Capacity.
BUA Cement Plc has officially triggered the next phase of its "Volume Strategy," signing a landmark $240 million agreement with Chinese engineering giant CBMI Construction to build a new ultra-modern production line in Sokoto State.
The project, dubbed Sokoto Line 6, is designed to add 3 million metric tonnes per annum (MTPA) to the company’s output, bringing its total installed capacity to a formidable 20 million MTPA upon completion.
Strategic Dominance in the North-West
The expansion cements BUA’s position as the undisputed leader of the northern market. As the only major cement manufacturer in Nigeria’s North-West, the Sokoto plant is uniquely positioned to bypass the high logistics costs that plague competitors transporting goods from the south.
"This expansion is more than just a numbers game; it’s about regional security of supply," said Abdul Samad Rabiu, Chairman of BUA Group, during the signing ceremony in Dubai. "We are leveraging our 15-year partnership with CBMI to ensure this facility is operational within 20 months."
Key Highlights of the Deal
Energy Independence: The new line will be integrated with BUA’s 700-ton-per-day mini LNG plant in Kogi State. Scheduled for completion later in 2026, the LNG facility will provide cleaner, cheaper energy, shielding the company from volatile diesel and grid electricity prices.
Export Ambitions: With its proximity to the border, the new capacity is specifically earmarked for landlocked markets in the Sahel, including Niger and Burkina Faso, leveraging the African Continental Free Trade Area (AfCFTA).
Multi-Fuel Capability: Line 6 will feature advanced technology allowing it to run on a mix of natural gas and locally sourced coal, optimizing operational efficiency.
The "Cement War" Intensifies
This move is seen as a direct challenge to the market leader, Dangote Cement. While Dangote maintains a massive lead with over 52 million MTPA, BUA’s strategy focuses on cost leadership through "captive power" (producing its own energy) and regional dominance.
Feature | BUA Sokoto Line 6 |
Investment Value | $240 Million (approx. ₦340.4 Billion) |
Capacity Increase | 3 Million MTPA |
Total Group Capacity | 20 Million MTPA (Post-Completion) |
Completion Target | Q3 2027 |
Economic Impact
Beyond construction jobs, the project is expected to stimulate a massive supply chain ripple effect in Sokoto and neighboring states. By increasing local supply, the expansion also places downward pressure on retail cement prices, a key goal for the Federal Government’s infrastructure agenda.
