Rating Release 

Agusto & Co. upgrades BUA Cement PLC’s ratings to “Aa-” (long-term) and “A1+” (short-term), with a stable outlook. 

The rating expires on 30 June 2027. 

Agusto & Co. upgrades the ratings assigned to BUA Cement PLC (“BUA Cement”, “BUA” or “the Company”) to “Aa-” (long-term) and “A1+” (short-term). The rating upgrade reflects the marked improvement in the Company’s earnings and cash flows, driven by stronger pricing, cost optimisation initiatives, improved operating efficiency and a substantial reduction in foreign exchange-related losses during the year. This is in addition to BUA Cement’s strong liquidity profile and adequate working capital position, which support its financial flexibility and debt servicing capacity. The ratings also recognise BUA Cement PLC’s ongoing capacity expansion programme, growing export activities and increasing focus on bulk cement sales, which are expected to support future earnings growth. Nevertheless, the ratings are constrained by the Company’s exposure to foreign currency denominated obligations, particularly the US$300 million IFC facility, which leaves earnings and debt service metrics susceptible to adverse exchange rate movements.

BUA Cement PLC is one of Nigeria’s leading cement manufacturers and the second-largest producer in the country by installed capacity. The Company operates fully integrated cement manufacturing facilities in Sokoto and Edo States with a combined installed capacity of 17 million metric tonnes per annum (mmtpa), serving customers across Nigeria through its extensive sales channels comprising distributors, construction companies and other industrial users. The Company has also expanded its regional footprint through cement and clinker exports to neighbouring West African countries. Supported by substantial limestone reserves and strategic plant locations, BUA Cement PLC is focused on increasing production capacity, deepening its presence in the regional market and strengthening its position within Nigeria’s cement industry.