Businesses cannot make 20-year investments without policy certainty: BUA Chairman
BUA Group chairman Abdul Samad Rabiu has called for consistent government policies and affordable long-term financing, warning that businesses cannot commit to industrial investments lasting decades without confidence in the operating environment.
Mr Rabiu spoke on Monday at the Nigerian Economic Summit in Abuja, where he urged the government to build on economic reforms by addressing obstacles to manufacturing and business expansion.
“We cannot expect businesses to make 20-year investments if they cannot plan with confidence beyond the next few years,” he said.
The industrialist identified access to affordable, long-term capital as one of the greatest barriers preventing small businesses from growing into major manufacturers.
He explained that manufacturers must acquire land, build facilities, purchase equipment, train workers and finance production before earning revenue. Such investments, he said, could require 10, 15 or 20 years to realise their full potential.
“You cannot build a strong industrial economy primarily with expensive short-term finances,” Mr Rabiu said.
He called for deeper financial markets and greater mobilisation of domestic savings for productive investment, saying pension funds, insurance companies, banks, development finance institutions and capital markets all had roles to play.
However, financing alone may not be enough without reliable infrastructure and confidence that government policies would remain consistent over time.
Mr Rabiu said Nigeria needed an environment where more businesses could grow into large industrial companies, rather than depend on a handful of established firms.
“The question we must ask ourselves is not simply how BUA can continue to grow. It is how Nigeria can create another 100 BUAs,” he said.
He explained that his proposal was for more major enterprises across manufacturing, agriculture, mining, technology and other productive sectors, creating jobs, supporting suppliers and generating exports.
His call for policy stability came alongside an endorsement of changes to Nigeria’s foreign exchange system, which he said has improved businesses’ access to foreign currency.
Mr Rabiu recalled previously travelling to the Central Bank of Nigeria every two weeks to seek allocations, saying businesses could now obtain foreign exchange through the market at prevailing rates.
“As an industrialist, I’d rather operate in a transparent market where I can plan than in a system where the official rate appears attractive but foreign exchange is unavailable because certainty gives businesses the confidence to invest,” he said.
He acknowledged that the federal government’s reforms had imposed costs on households and businesses, and that many Nigerians still faced difficulties.
“Of course, high financing costs, infrastructure gaps, and pressures on household incomes remain serious challenges,” he said.
He urged the government to ensure that reforms translated into increased production, employment and improved living standards.
Mr Rabiu also called for reliable roads, rail connections, electricity and efficient logistics, arguing that factories should be able to supply customers across Nigeria and beyond competitively.
“Infrastructure is not simply about building roads and railways; it is about building one connected, competitive Nigerian economy,” he said.
He urged better domestic processing of agricultural produce and mineral resources, citing cement manufacturing as an example of how investment in local production could reduce dependence on imports.
Outlining his proposed economic accord, Mr Rabiu identified policy stability, productive investment, human capital, long-term financing and shared prosperity as five priorities.
He said the federal government must provide conditions that encourage investment, while businesses must respond by developing farms, building factories and creating jobs.
According to him, the ultimate test would be whether economic growth improved Nigerians’ lives.
“The reforms we have taken must now lead to more factories, more jobs, more competitive businesses, and better lives for our people,” he said.
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