BUA Foods signs deal to build four wheat milling factories in Nigeria 

BUA Foods Plc has signed a deal with a Turkish milling equipment manufacturer, IMAS to build four new wheat milling factories with a capacity to mill up to 3200 tonnes daily.

The company disclosed this in a statement on the NGX signed by its Director of Marketing and Communications, Adewunmi Desalu.

According to the statement, the proposed new wheat mills will increase BUA’s milling capacity to 2.5 million MT per annum.

The company noted that the new factories will boost manufacturing capacity and capabilities, enabling the production of more high-quality products that will help address food challenges in Nigeria.

The Chairman of BUA Food Plc, Abdulsamad Rabiu who signed the agreement on behalf of the company stated that new factories are part of plans to improve the company’s share of the Nigerian flour market.

He said, “This partnership with IMAS is a testament to our dedication to improving food security in Nigeria. These new factories will significantly boost our capacity to continue to produce high-quality flour products while helping to create additional job opportunities across the country.”

“This investment is a step towards our target of increasing our share of the Nigerian flour market. The addition of four mills will enable us to produce high-quality flour thereby offering us the flexibility to address various potential flour needs.”

In 2022, the company’s installed milling capacity stood at 500,000 metric tonnes per annum with a capacity utilisation of 84%. The projected increase to 2.5 million metric tonnes means million capacities will rise by nearly 400%.

Wheat ranks as the third most consumed grain in Nigeria, following rice and corn, with the United States Foreign Agricultural Service projecting the country’s wheat consumption to reach 6.06 million tonnes. Nigeria spent approximately N970.22 billion on wheat imports over the past 12 months, according to data from the National Bureau of Statistics (NBS) foreign trade report for the last four quarters.