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BUA tackles Hadiza Usman over concession violation claim

The Management of BUA Group, has challenged the  Special Adviser to President Bola Tinubu on Policy Coordination, Ms Hadiza Bala Usman, to specify clause violated by the group to warrant termination of their port concession agreement with the Nigerian Ports Authority (NPA).

Usman is also one time Managing Director of NPA, during former President Mohammadu Buhari’s regime.

The group was responding to Usman’s claims justifying the abrogation of the concession.

This is contained in a statement by the BUA group in Abuja on Sunday.

BUA in the statement questioned the special adviser’s decision to ignore court judgments on the issue and the arbitration process initiated by former President Muhammadu Buhari.

The group while noting that Tinubu had further consolidated on due process rejected by Usman while she served as NPA MD, also said that the present administration’s inclination to due process had further restricted the kind of arbitrariness that the aide exhibited in her assertions and actions as NPA MD.

“In her comments, she accused BUA Group and our Chairman, AbdulSamad Rabiu, of breaching a concession agreement and distorting facts.

“BUA entered into a valid long lease agreement in 2006 with the NPA to rehabilitate and operate Terminal B at Rivers Port in Port Harcourt, Rivers.

“Long before Ms Usman’s appointment, BUA had begun formal engagement with the NPA to address outstanding remedial works and infrastructural deficiencies. These discussions were near conclusion when she assumed office.

“Rather than build on that process, she ignored BUA’s requests and obligations under the agreement.

“In 2016, BUA wrote to the NPA under Article 8.4 of the lease, mandating concessionaires to report environmental and safety concerns and to seek approval for remedial works.

“Rather than act constructively, she used that letter as a pretext to issue a termination notice and summarily shut down the terminal, without providing any prior warning, consultation, or invoking the dispute resolution clause,” the company said.

The group noted that these lapses were significant impediments to BUA’s operations and, as a result, led to disputes between the parties.

“After the unlawful termination, BUA approached the Federal High Court, which promptly granted an injunction restraining the NPA from proceeding with termination.

“The NPA itself then referred the dispute to arbitration, as stipulated in Section 17.3 of the agreement, which clearly states: Any dispute, controversy or claim, shall be exclusively and finally settled pursuant to the dispute resolution process prescribed in this Article.”

“In spite of this, Usman, against the advice of her agency, unilaterally decommissioned the berths, thereby violating both the agreement and a court injunction

“To be clear, the concession agreement granted her no such power to decommission. If she believes otherwise, we invite her to publicly cite the specific clause that authorises this action.

“To further compound the illegality, BUA after providing the guarantees and indemnities requested by the NPA, was permitted to resume operations briefly.

“Merely three weeks later, the terminal was again shut down. This left no doubt that her actions were motivated not by due process, but by personal animosity and abuse of office.

“BUA subsequently filed contempt proceedings and was looking at estimated losses in excess of $10 million. These proceedings were only withdrawn out of respect for national interest and following the intervention of well-meaning Nigerians within and outside the governmen,” the group added.

The group however lauded the Tinubu-led administration saying that the culture of impunity had been significantly curtailed under his leadership, as many were aware they could be dismissed or imprisoned if they abused their positions.

The BUA group also said that following Usman’s removal from office, the NPA, under a new leadership, implemented the AGF’s position.

“In 2022, BUA was granted formal approval to resume reconstruction works. The contract was awarded to TREVI, and BUA has since invested over $65 million; entirely self-funded and with no recourse to public funds or subsidies.

“Work is ongoing and completion is expected in the first quarter of 2026,” BUA further said.

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BUSINESS FEATURED STORIES

BUA Cement revisits promise to sell cement N3,500 per bag

AbdulSamad Rabiu, the Multi-billionaire Chairman of BUA Cement, has  revisited his unmaterialised promise to help Nigerians by selling a bag of his cement at N3,500 per bag.

He had about a year ago raised the people’s hope but it remains a dashed one as the product now sells for about N8,000.

According to him, he was frustrated by marketers whom he sold it to so cheaply but resold at high prices.

He said in an interview: “So, a lot of the dealers took advantage of that policy. Rather than pass the low prices to the customers, they were selling at even double the price we sold to them.“Some were selling at N7,000 and 8,000 per bag. They made a lot of money with a very high margin. I think we had sold more than a million tons at N3,500 before we realised what the dealers were doing.

“And then, because of the issues that Nigeria faced at the time about the devaluation of the Naira last year and the removal of fuel subsidy, we could not continue that policy.

“We wanted that price to stay at that level but dealers refused. So, we could not sustain that simply because we did not want to be in a situation where we are subsidizing dealers.“I’m referring to the point when the foreign exchange rate moved from about N600 to maybe N1,800 to the US Dollar. So, it became even more challenging and more difficult for us to actually sustain that price policy.”

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NEWS & LIFE

BUA announces 50% salary increment for staff

Chairman of BUA Group, Abdul Samad Rabiu, says the company has approved a 50 per cent salary increment for staff across board.

Rabiu made the disclosure in an internal memo signed on Sunday in Lagos by Mr Mohammed Wali, BUA’s Head of Human Resources.

The memo quoted BUA chairman as saying that the increment was to mitigate the impact of the economic hardship currently being faced in the country.

He said the salary increment would cover both permanent/regular and non-permanent staff with effect from Feb. 1, 2024.

“Sequel to the above development, the Human Resources and Finance departments are processing the increase to ensure that it is captured in the February 2024 payroll.

“It is hoped that with this magnanimous gesture, we will be more committed to our duties and put in our very best to justify the confidence reposed in us,” he said.

The News Agency of Nigeria (NAN) reports that due to the current economic conditions in the country, negotiations are ongoing between the organised labour and the government, for a new minimum wage.

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BUSINESS FEATURED STORIES

BUA increases staff salaries by 50% as promised cement price reduction is still being awaited

Chairman of BUA Group, Abdul Samad Rabiu, says the company has approved a 50 per cent salary increment for staff across board.

This is as the promise the company made to reduce cement price is still lingering.

Rabiu made the disclosure in an internal memo signed on Sunday in Lagos by Mr Mohammed Wali, BUA’s Head of Human Resources.

The memo quoted BUA chairman as saying that the increment was to mitigate the impact of the economic hardship currently being faced in the country.

He said the salary increment would cover both permanent/regular and non-permanent staff with effect from Feb. 1, 2024.

“Sequel to the above development, the Human Resources and Finance departments are processing the increase to ensure that it is captured in the February 2024 payroll.

“It is hoped that with this magnanimous gesture, we will be more committed to our duties and put in our very best to justify the confidence reposed in us,” he said.

The News Agency of Nigeria (NAN) reports that due to the current economic conditions in the country, negotiations are ongoing between the organised labour and the government, for a new minimum wage.

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BUSINESS FEATURED STORIES

Cement: BUA gives update on its N3,5000-per-bag arrangement

As Alhaji Abdul-Samad Rabiu, Chairman of the BUA Group, says the company will maintain its promise of selling cement at the price of N3,500 from January 2024, he has hinted at some indices attached to it.

He said this while speaking with State House Correspondents after a visit to President Bola Tinubu on Thursday in Lagos.

He said the company would also make the product accessible and affordable to customers in spite of various challenges.

“You know the price that we have set will be N3,500 per bag. You know x factory of course plus VAT and then delivered to customers depending on the region.

“As you know, the factories that we have; one is in Edo, the other one is in Sokoto state. So for example, if you want us to deliver cement to you from Sokoto say to Lagos from Adamawa or to Maiduguri, the distance is quite far.

“So dependent on the distance and dependent on the location. You know the price changes but we intend to keep that promise,” he said.

Rabiu added that the cement company site in Sokoto that would be inaugurated by January 2024 is expected to further expand the market across the country.

“And as we all know, the volumes that we will be having will be about six million tonnes per annum combined. And we expect those volumes to have an impact.

“Though we’re having some issues here and there, but these are issues that I believe we can address and we are addressing them.”

Rabiu said his visit to the President was to felicitate with him on the Christmas and New Year festivities, adding that it was a pleasant one.

“It is always quite good to see them when they are relaxed and you know, I am pleased to say that his excellency looked very relaxed, well rested and also in good spirits,” BUA chief said.

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BUSINESS FEATURED STORIES

BUA to open new cement plant in Sokoto

One of the Nigeria’s leading cement providers, BUA, has revealed its plan to inaugurate a new cement plant in Sokoto State by January 2024.

Alhaji Abdulsamad Rabiu, the Chairman of BUA Group, made this announcement during his visit to Gov. Ahmad Aliyu in Sokoto on Wednesday.

Rabiu said that the company was diligently working to ensure the new plant, currently under construction in Sokoto would be ready for the inauguration.

He informed the governor that during his meeting with President Bola Tinubu on Tuesday in Abuja he personally intimated him of the company’s intention to inaugurate the new plant.

Rabiu said, “Moreover, we extended an invitation to him to be our special guest at the inauguration.*

The chairman emphasised that BUA Cement in Sokoto remained the largest private enterprise with the highest workforce in the entire North-West.

Rabiu, while expressing gratitude to the people of the state for providing a conducive business environment, congratulated Aliyu on his electoral victory and pledged the group’s unwavering support for his government.

He further assured that the company would remain committed to supporting the interests of the host communities through various social intervention initiatives.

Responding, Aliyu commended BUA Group for its contributions to the state through its social responsibility programmes and described the company’s efforts as remarkable.

The governor pledged continuous support from his administration to investors in the state.

 

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BUSINESS FEATURED STORIES

Good news on cement: BUA to crash price down to N3,000, says Samad Rabiu

BUA Cement Plc. has good news for Nigerians.

It says it will reduce the price of cement in Nigeria from the current N5,500 to between N3,000 and N3,500.

The company’s Chairman, Abdul Samad Rabiu, disclosed this to Journalists after an audience with President Bola Tinubu at the State House, Abuja.

Rabiu said the price crash is part of his company’s contribution to supporting the efforts of the Federal Government to stabilise the prices of essential commodities.

However, this would only follow the opening of two new plants of 3 million tons operating capacity each to be commissioned at the end of the year.

Rabiu said “Let me thank his excellency Mr. President for graciously receiving me today, I came to intimate his excellency on the affairs of our cement business.

“We have two new lines of 3 million tons each that we will be commissioning by the end of the year.

“So I explained to him that we want to support the efforts of the government in bringing down the cost of cement, by the time these lines are commissioned BUA Cement will be producing about 17 million tons per annum and with that, we intend to bring down the cost of cement from its current level of N5,000 or N5,500 per bag to maybe N3,000 to N3,500 per bag.”

He said the company could only do this because it is producing cement locally.

“Eighty per cent of the raw materials that we are using to produce cement in Nigeria are mainly limestone and gypsum and of course, energy is part of it. Of course, we have gas in Nigeria.

“So we want to support the government, we want to support their efforts in ensuring that the prices of these commodities are brought down incidentally.’’

He revealed that the two new plants to be inaugurated by Tinubu later in 2023 would increase production capacity to 17 million metric tons.

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BUSINESS

BUA to set up 3m metric tonnes cement plant in Adamawa

Alhaji Abdussamad Rabiu, the Chairman of BUA Group of Company, says the firm will set up a three million metric tonnes cement plant in Adamawa.

Rabiu disclosed this when he paid a courtesy visit to Gov. Ahmadu Fintiri of Adamawa on Friday in Yola.

The chairman said that he was in Yola to identify with the state government’s strides as well as to seek areas of business partnership.

He said that the partnership was meant to contribute the company’s quota to the economic development of the state, North East and Nigeria at large.

“I am here today with the management of BUA Cement Company to identify with your government efforts and seek for areas of partnership.

“Also to inform you of our plan to set up a 3 million metric tonnes cement plant and 50MW power plant in Guyuk and Lamurde Local Government Areas of the state.

“Once the company is established, it will supply electricity to neighbouring local government areas and provide at least 3,000 direct and 5,000 indirect jobs to the people of the state,” Rabiu said.

He further explained that the BUA preliminary findings has shown that the two local government areas (Guyuk and Lamurde) had the highest quality of Limestone in the whole of Nigeria.

The chairman said that after the findings, the company was ready to begin developing these mines by investing heavily.

Rabiu noted that the company has designed to use a new technology to bring Liquify Natural Gas (LNG) for power supply.

“This cement plant will be our first major investment in the North East and we are soliciting Adamawa Government’s support to tap the limestone resource in Guyuk and for the successful set up of this cement plant and the power plant.

“Our records of accomplishment unlocking latent opportunities across Nigeria and in various sectors speaks for it self,” Rabiu said.

Responding, Fintiri thanked the BUA management for choosing Adamawa and showing interest to partner with the state.
The governor said that part of his administration’s policy was economic growth for sustainable development of the state.

“Our doors are open for any meaningful development and we are ever ready to partner with any private sector that will bring development to the state,” he said.

The chairman of the African giant BUA, Alhaji Abdussamad Rabiu, donated N200 million to the Adamawa government to fight the COVID-19 pandemic.