BUA Foods seeks ₦504B dividend approval amid 95% profit surge as Nigerians face food crisis
BUA Foods seeks shareholder approval for a ₦504 billion dividend payment following its 2025 financial year results showing revenue of N1.77 trillion (16% increase) and profit after tax of N518.4 billion (95% surge). The company operates in sugar refining, flour milling, and pasta production, positioning it as one of Nigeria's largest food processors.
This massive payout request comes amid Nigeria's persistent food inflation crisis entering its second year, driven by farming community insecurity, high transportation/energy costs, exchange rate pressures, and climate disruptions affecting agricultural output. While BUA Foods reports soaring profits from increased demand for its products, millions of Nigerians struggle with basic food affordability.
Both Federal Government and major food manufacturers have announced measures to boost domestic production and strengthen local value chains to reduce import reliance. The stark contrast between BUA's near-doubled profits and national food hardship highlights critical questions about wealth distribution in Nigeria's essential sectors.
What does this extreme profit surge amid widespread food insecurity suggest about the effectiveness of current agricultural policies, and what specific interventions should be prioritized to ensure food sector gains translate to broader public benefit?