BUA praises Tinubu’s reforms, highlights economic progress

As President Bola Ahmed Tinubu marks his second year in office, prominent industrialist and Chairman of BUA Group, Abdul Samad Rabiu, has commended the administration’s sweeping economic reforms, calling them bold, necessary, and transformative for Nigeria’s long-term economic growth.

In a detailed commentary obtained by our correspondent, Rabiu shared insights on how key policy shifts such as the removal of fuel subsidy, the unification of the foreign exchange (FX) regime, and improvements in the business environment have already begun yielding results for Nigerian businesses and the broader economy.

Fuel Subsidy Removal: A Bold Step That Saved Nigeria

Rabiu described the decision to remove the decades-long fuel subsidy as one of the most courageous economic moves made by any Nigerian president.

“Before the subsidy was removed, Nigeria was practically giving away fuel not just to its own citizens but to the entire region,” Rabiu stated. Citing a personal anecdote from a recent visit to Saudi Arabia, he noted that Nigeria was previously selling fuel at a fraction of its actual cost.

He praised President Tinubu for removing the subsidy on his first day in office, a decision he said has significantly reduced fuel smuggling to neighboring countries and saved the country billions in public spending. According to Rabiu, domestic fuel consumption dropped by nearly 50% after the subsidy removal, suggesting that much of the previously recorded demand came from regional smuggling.

FX Market Reform: Ending Arbitrary Access and Restoring Stability

On the unification of the FX market, Rabiu recalled the inefficiencies and frustrations faced by the business community under the previous regime.

“Before the reform, I spent half my time chasing FX from the CBN. Today, I don’t need to go to Abuja for that. The system is now open and transparent,” he said.

He lauded CBN Governor Olayemi Cardoso for maintaining an open system where access to FX is no longer dependent on political connections or bureaucratic hurdles. He emphasized that this reform has enabled businesses to plan effectively and make long-term investments.

Business Confidence and Regulatory Sanity

Rabiu also recounted a disturbing experience where BUA’s operations in Port Harcourt were abruptly halted due to politically motivated interference. The company was operating under a valid concession with the Nigerian Ports Authority (NPA) when their lease was suddenly revoked without prior notice.

He revealed that the shutdown was linked to personal interests within the NPA leadership at the time, a situation he believes would no longer be possible under the current administration.

“Today, there’s confidence that no business can be shut down arbitrarily. That is the kind of sanity that allows investors to take long-term decisions,” Rabiu noted.

Infrastructure Boom: Roads, Ports, and Tax Credit Projects

According to Rabiu, the savings from subsidy removal and FX reforms have allowed the government to ramp up infrastructure development across the country.

He cited several ongoing federal road projects, including the Lagos-Calabar highway, Sokoto-Badagry road, and the Kano-Kongolam corridor. BUA itself is engaged in multiple infrastructure initiatives, including tax credit-backed road construction from Okpella to Kogi State.

“These roads are critical for reducing logistics costs and increasing business efficiency. We’re already seeing the benefits,” Rabiu said.

Over $1 Billion Investment by BUA in Two Years

Rabiu disclosed that BUA Group has invested over $1 billion in Nigeria since President Tinubu assumed office. These include expansions in their food processing facilities, a new solar energy project in Sokoto State, and an LNG project in Ajaokuta, Kogi State.

He attributed this aggressive investment drive to the stable economic environment and predictability created by the current administration’s policies.

Tackling Food Inflation: Strategic Intervention in Rice Supply

Rabiu praised the government’s temporary tariff waiver on rice imports as a strategic intervention that disrupted artificial scarcity caused by hoarding.

“The waiver forced hoarders to release stock, which led to a drop in prices. It was a short-term fix, but it worked,” he said, adding that continued vigilance is necessary to ensure food security.

Promoting Local Production: The Nigeria First Policy

Rabiu commended the government’s push for local production and backward integration. He noted that BUA’s cement operations are now fully locally sourced, using Nigerian limestone and gas.

“Importing cement today would have cost over ₦15,000 per bag. Thanks to local production and enabling policies, we have saved the sector from collapse,” he remarked.

A Call to Investors: “Bet on Nigeria”

Concluding his statement, Rabiu expressed optimism in Nigeria’s future under the Tinubu administration. He urged both local and foreign investors to seize the opportunities being created.

“Nigeria has everything—resources, population, land—and now, strong leadership. The fundamentals are in place. This is the time to bet on Nigeria,” he said.

Rabiu highlighted three reforms he believes will define Tinubu’s legacy: removal of the fuel subsidy, unification of the FX market, and the restoration of fairness and predictability in the business environment.

“These are the foundations for sustained growth. With continued commitment and focus, there is no limit to what Nigeria can achieve,” he concluded.