Africa’s leading food manufacturing company, BUA Foods Plc, has proposed a dividend of N28.00 per ordinary share, totalling about N504 billion for the 2025 financial year.

Africa’s leading food manufacturing company, BUA Foods Plc, has proposed a dividend of ₦28.00 per ordinary share, totalling about ₦504 billion for the 2025 financial year.

The company stated that the proposal is subject to shareholders’ approval at its 5th Annual General Meeting, scheduled for 15 July at the Transcorp Hilton Hotel, Abuja. At the meeting, shareholders will also consider the company’s audited financial statements for the year ended 31 December 2025, as well as other statutory and corporate governance matters.

For the 2025 financial year, BUA Foods reported revenue of ₦1.77 trillion, representing a 16 per cent increase over the previous year. The company also recorded a 95 per cent growth in profit after tax to ₦518.4 billion. In comparison,ile total assets increased by 27 per cent to ₦1.39 trillion, reflecting continued investment in manufacturing capacity and capabilities, operational excellence, and long-term value creation.

The food manufacturer noted that the meeting follows a period during which BUA Foods delivered strong financial performance, enhanced operational efficiency, and reinforced its position as one of Nigeria’s most valuable consumer goods companies.

Meeting agenda

Commenting ahead of the meeting, the Managing Director of BUA Foods Plc, Ayodele Abioye, said the AGM would provide an opportunity to engage shareholders, review the company’s performance, and discuss its future direction. He noted that despite a challenging operating environment, the company sustained strong performance through disciplined execution and its commitment to delivering quality food products.

Mr Abioye attributed BUA Foods’ achievements to the support of customers, supply partners, its board, management, employees, and other stakeholders. He added that BUA Foods would continue to focus on creating sustainable long-term value through investments in capacity expansion and strengthening food security in support of national development.

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“The 5th Annual General Meeting provides an important opportunity to engage with shareholders, reflect on another year of strong performance, and discuss the future direction of the business. Despite a dynamic operating environment, BUA Foods continued to demonstrate resilience through disciplined execution and an unwavering commitment to delivering quality food products to millions of consumers. Looking ahead, the focus remains on creating sustainable long-term value through continuous investments in capacity expansion, with capabilities that strengthen food security for national development,” Mr Abioye said.

The food company reaffirmed its commitment to delivering sustainable returns, strengthening stakeholder confidence, and advancing its purpose of nourishing lives every day.

Mr Adeniyi announced the tariff review on Monday while defending the service’s 2026 budget proposal before the House of Representatives Committee on Customs and Excise.

He stated that the import duty on used vehicles has been lowered from 15 per cent to five per cent, whilst the rate for brand-new vehicles has been cut from 20 per cent to 10 per cent.

According to him, the revised tariff regime forms part of the government’s broader fiscal policy for 2026 and is expected to support economic activity. However, it could reduce customs revenue from vehicle imports.

“We have the new excise tariff, which is provided in the 2026 fiscal policy. We believe that these measures will increase our revenue collection,” Mr Adeniyi told the lawmakers.

“Conversely, during the same tariff measures that were given to us, tariffs on vehicles and levies on vehicles have been reduced significantly. For used vehicles, the tariff has been reduced from 15 per cent to 5 per cent, and for brand-new vehicles, from 20 per cent to 10 per cent. So, we believe that this is something that may also negatively affect revenue,” he added.

Lawmakers react

During the session, Alex Mascot (Abia State) questioned whether the reduction would be sufficient to discourage importers from diverting cargo through neighbouring ports, particularly Cotonou.

“If five per cent has been reduced from the fee that is paid when you import goods into the country, why then do people still move their goods to Cotonou?” he asked. He argued that high import charges had long pushed many traders to clear their goods outside Nigeria and urged the Customs Service to assess whether the new policy would address the challenge.

Responding, Mr Adeniyi said implementation of the revised tariff structure commenced in May.

Chairman of the committee, Leke Abejide (APC, Kogi), welcomed the policy, describing it as a positive step for Nigerians. He said many citizens had consistently demanded lower vehicle import duties and commended President Bola Tinubu’s administration for approving the reduction.

2025 budget performance

Mr Adeniyi also presented the NCS 2025 revenue performance, revealing that the service generated ₦7.258 trillion between January and December, surpassing its approved target. He said the figure exceeded the annual target by ₦1.153 trillion, representing an 18.89 per cent increase.

Despite the strong performance, he noted that several government policies constrained revenue collection during the year. These included the suspension of excise duty on telecommunications services, the continued suspension of the proposed green tax introduced in 2023, and fiscal incentives aimed at encouraging local production of healthcare products, which reduced customs duty and Value Added Tax (VAT) collections on imported medical items.

He added that the presidential initiative promoting Compressed Natural Gas (CNG) and electric vehicles also reduced revenue from imports in those sectors.

According to him, revenue was further affected by the large volume of imports granted concessions through Import Duty Exemption Certificates (IDEC), VAT orders, and Schedule II of the Common External Tariff (CET). Mr Adeniyi disclosed that imports valued at ₦34.538 trillion benefited from various revenue waivers in 2025. Petroleum products accounted for 56.40 per cent of the concessions, military imports made up 40.52 per cent, whilst IDEC and other qualifying imports represented the remaining 3.08 per cent.

He also cited disruptions to global trade caused by the Russia-Ukraine war, particularly its impact on wheat imports into Nigeria.

Customs projects ₦11.074tn revenue in 2026

Looking ahead, the Customs Service is targeting ₦11.074 trillion in revenue for the 2026 fiscal year. Mr Adeniyi said the projection comprises ₦5.542 trillion for the federation account, ₦1.491 trillion in non-federation revenue, ₦2.773 trillion from import VAT, and ₦1.266 trillion from free-on-board (FOB) collections.

To achieve the target, he said the service would accelerate the deployment of the Unified Customs Information System (UCIS), also known as B’Odogwu, to automate customs operations and improve efficiency. Other strategies include expanding post-clearance and real-time audits to strengthen compliance, extending the Authorised Economic Operator (AEO) and advance rulings programmes to facilitate trade, deploying geospatial technology and joint border patrols to combat smuggling, and deepening engagement with stakeholders.

Mr Adeniyi added that the implementation of the new excise tariff regime, the planned reintroduction of the green tax, and other fiscal measures would strengthen revenue generation despite uncertainties in global trade arising from geopolitical tensions involving the United States, Israel, and Iran.

Proposed expenditure

The Customs Service is proposing an expenditure of ₦1.235 trillion for the 2026 fiscal year. According to Mr Adeniyi, the budget will be financed through ₦949.86 billion from the four per cent FOB allocation, ₦55.47 billion from its two per cent share of VAT revenue, and ₦230.04 billion earmarked for ongoing capital projects.

The proposed spending includes ₦421.70 billion for personnel costs, ₦307.77 billion for overheads, and ₦565.93 billion for capital expenditure.