• BUA partners with Bühler to build a 32-ton/hour rice processing line

• Expansion aims to boost capacity as Nigeria imports 2.5m tons annually

• Rice sales are rising but remain a minor share of BUA Foods’ revenue

Nigerian conglomerate BUA has signed a partnership with Swiss industrial group Bühler to expand its rice processing business. The agreement was concluded in Dubai on Tuesday.

In a statement on its website, BUA said the partnership includes the construction of a 32-ton-per-hour paddy rice processing line. The company did not disclose the investment cost or the project location. The move indicates an effort to expand its rice processing capacity in Africa’s most populous country.

In its 2024 annual report, BUA Foods, the subsidiary that manages the group’s agribusiness activities, said it already has an installed paddy rice processing capacity of 200,000 tons per year at its mill in Kano State. Nigeria imported an average of 2.5 million tons of milled rice per year between 2022 and 2024, according to the Food and Agriculture Organization. Increasing BUA Foods’ production capacity offers the company an opportunity to gain additional market share.

“Rice continues to account for nearly 10% of the average Nigerian household’s food expenditure, underscoring its importance in national food security. Looking ahead, market analysts project the Nigerian rice sector to grow at a compound annual rate of 11.32% between 2025 and 2030, with total market revenues expected to reach around USD 5.62 billion by 2025,” the company noted in the report.

The investment is expected to accelerate growth in the company’s rice business and increase rice’s contribution to revenue. In 2024, rice sales generated 5.6 billion naira (3.8 million dollars) for BUA Foods, more than double the 1.4 million dollars recorded the previous year.

Despite this performance, milled rice still accounts for a small share of the group’s revenue. BUA Foods reported total revenue of 1.527 trillion naira (1.05 billion dollars) last year, with sugar accounting for 48 percent, flour milling 39 percent and pasta 13 percent.

Stéphanas Assocle