Chairman of BUA Group Abdul Samad Rabiu, has committed to further reducing the prices of essential food items, including rice, flour, and maize, which have already experienced significant price drops over the past year. He attributed this positive shift to President Bola Tinubu’s decisive policy to suspend customs duties on imported food items, a move Rabiu praised for its role in curbing rising food prices in the country.
In July 2024, the Tinubu administration announced a six-month suspension of customs duties on imported food products as part of a broader effort to combat food inflation in Nigeria. Rabiu, speaking to State House Correspondents following a meeting with President Tinubu, expressed gratitude for the initiative, noting that BUA Foods had leveraged the policy to import large quantities of wheat, maize, and rice.
“At the height of the food price surge last year, a 50-kilo bag of rice cost around N100,000 to N110,000. Similarly, flour was priced at about N80,000 per bag, maize reached N60,000 for a 50-kilo bag, and pasta was over N20,000 per carton,” Rabiu explained. “By tapping into this policy, BUA imported significant volumes of wheat, maize, and rice. Once shipments arrived, we immediately began processing, and as a result, we were able to drastically reduce prices.”
Rabiu shared with pride that rice prices, for example, have now dropped to N60,000 per 50-kilo bag from the previous year’s N110,000, while flour is now priced at N55,000 per 50-kilo bag and maize has fallen to N30,000. This drop, he noted, was made possible due to President Tinubu’s visionary policy.
Further elaborating on the root causes of high food prices, Rabiu explained that many Nigerian companies engage in hoarding rice paddy unprocessed rice during the harvest season. This practice, he said, contributes to price inflation by holding large quantities of paddy until the harvest season ends, at which point prices double. While farmers continue to receive their usual price for the paddy, the market price inflates as traders hoard the commodity.
Rabiu said the government’s import policy disrupted this cycle, which in turn helped bring prices down. “With our imports, we flooded the market, which made it difficult for hoarders to hold on to their stock. They were unable to sell at inflated prices, and that contributed to a reduction in prices,” he noted.
He also pointed out that members of the Rice Millers Association are now actively addressing the issue of hoarding, ensuring that no member engages in such practices. “We are working to ensure that rice millers are not hoarding paddy, although it’s a challenge to completely eliminate the practice. However, we’ve made sure there is enough rice in the market, especially with BUA’s large imports,” he said. “With this supply in place, traders are less likely to hoard, as they know that BUA and other suppliers will stabilize the market and prevent price hikes.”
Rabiu reiterated that BUA is committed to supporting the government’s efforts to stabilize food prices in the long term. “While many people were vocal when food prices were at N100,000, we don’t hear as much about the falling prices now. But I want to assure Nigerians that food prices are coming down and will continue to decrease,” he concluded.
The BUA Group’s contribution to reducing food prices, through strategic imports and processing, showcases the significant impact of the policy and highlights the company’s ongoing commitment to assisting in the nation’s efforts to manage inflation and provide affordable food to its citizens.
