In another defining move that underscores its dominance in Africa’s agro-industrial space, BUA Group, one of the continent’s largest and most diversified business conglomerates, has partnered with Swedish engineering giant Alfa Laval to establish a state-of-the-art 1,000 metric tonnes per day palm oil refinery and fractionation plant in Nigeria.
The landmark agreement was signed in Dubai, United Arab Emirates, at BUA Group’s Middle East office, between Abdul Samad Rabiu, Founder and Executive Chairman of BUA Group, and Pankaj Maheshwari, Vice President of Alfa Laval’s Food & Water Division. This partnership signals a strategic push to significantly reduce Nigeria’s dependence on imported palm oil by advancing local processing capacity.
Palm oil is a staple in Nigeria’s food value chain, used in cooking, industrial food processing, cosmetics, and more. However, the country remains a net importer despite its historical role as a global producer in the pre-independence era. This refinery seeks to close that gap by enhancing Nigeria’s self-sufficiency in edible oil production, aligning with the federal government’s broader food security and backward integration policies.
Expected to process up to 1,000 tonnes per day, the facility will be one of the largest of its kind in West Africa and will include fractionation capabilities to optimise the use of palm oil derivatives in multiple industries. The project will be powered by Alfa Laval’s cutting-edge refining technology, which is engineered for efficiency, sustainability, and scalability.
“This collaboration is a step forward in our commitment to industrial development, food security, and import substitution in Nigeria,” said Rabiu. “We are delighted to work with Alfa Laval, whose global leadership in process engineering aligns with our vision for Africa’s food manufacturing future.”
BUA Foods Plc, the agribusiness arm of BUA Group, already boasts a strong presence in Nigeria’s food processing sector, with leading operations in sugar refining, flour milling, pasta production, rice processing, and edible oil milling. The addition of this advanced palm oil refinery expands the company’s vertical integration in the edible oils value chain and positions it to serve both local and export markets.
More than just a business move, the refinery will have a a significant socio-economic impact—creating hundreds of direct and indirect jobs, supporting local oil palm farmers, and enabling value-addition within Nigeria. Furthermore, the facility will be developed with sustainability at its core, in line with global best practices for environmentally responsible palm oil production.
This investment marks yet another bold stride by Abdul Samad Rabiu, currently ranked as Nigeria’s third-richest man with a net worth estimated at $4.9 billion (Forbes, 2024). His companies, including BUA Cement and BUA Foods, continue to demonstrate how private sector leadership can help solve national development challenges across food security, industrialisation, and job creation.
As Nigeria continues its journey toward agro-industrial transformation, BUA Group’s latest venture is a reaffirmation of the private sector’s critical role in shaping an inclusive and resilient economy.
