Abdul Samad Rabiu, Chairman of BUA Group, has committed to further reducing the prices of rice and other food products, which have already seen a decline over the past year.
He praised President Bola Tinubu for implementing a waiver on imported food items, stating that this “foresight” has significantly contributed to lowering food prices in the nation.
In July 2024, the Tinubu administration announced the suspension of customs duties on imported food items to combat food inflation.
After a meeting with President Tinubu on Thursday, Rabiu spoke to State House Correspondents, explaining that BUA Foods took advantage of this policy to import substantial quantities of wheat, maize, and rice.
“Last year, food prices were exceedingly high; for instance, a 50-kilogram bag of rice was priced around N100,000, flour was approximately N80,000 per bag, maize was about N60,000 per 50 kilograms, and pasta exceeded N20,000 per carton. By aligning with this policy, BUA managed to import significant amounts of wheat, maize, and rice.
“Once the shipments began arriving, we processed the goods and reduced prices on these commodities. I am pleased to report that the price of rice has dropped to around N60,000 from last year’s N110,000, while flour is now N55,000 per 50 kilograms. Maize costs about N30,000. This achievement is due to the President’s insightful decision to introduce a one-time duty waiver for six months, which has enabled us to lower these prices,” Rabiu stated.
The billionaire entrepreneur elaborated on the factors contributing to the rise in food prices and how the President’s policy has helped mitigate this trend.
“Many are unaware that numerous companies in Nigeria typically purchase large quantities of rice paddy—raw rice used in processing. As the harvest season begins, many stockpile this paddy for three to four months, causing prices to double once the season ends. While this does not negatively impact farmers, who receive between N400,000 to N500,000 per ton of paddy, those who hoard can see prices soar to N800,000, leading to the current price of N110,000 per bag.
“The intervention we implemented created challenges for hoarders. With our imports, we were able to sell, and those hoarding paddy were unable to do so, resulting in a price drop that continues to persist. Many of these hoarders are now experiencing financial losses.”
Rabiu mentioned that the Rice Millers Association has united to tackle the issue of hoarding among certain companies, emphasizing their commitment to preventing any member from engaging in such practices.
“We, as rice millers, aim to ensure that our members do not purchase and hoard paddy. While it’s challenging to completely eliminate this behavior, the knowledge that sufficient imported rice is available—thanks to BUA’s imports, which will sustain us until year-end—deters hoarding. If they attempt to hold back rice and inflate prices, BUA will be there to lower them.
“I am optimistic that rice prices will not rise beyond current levels. As the new season begins, farmers will receive their usual prices, and rice prices should stabilize. The fear of hoarding will deter such actions, as it could lead to financial losses for those who attempt it.
“Furthermore, I’d like to express my gratitude to His Excellency for his vision and foresight. I initially doubted the effectiveness of this approach, but we adapted, imported, and supported the initiative, leading to reduced prices. We will continue to back the government’s efforts to ensure food prices remain low, and I am confident they will keep decreasing.
“It’s interesting to note that when prices soared to N100,000, there was widespread outcry, but now that prices are falling, few are acknowledging this positive change. However, I am here to affirm that food prices are indeed decreasing and will continue to do so, thanks to the initiatives of BUA Foods in support of government efforts to stabilize prices,” Rabiu concluded.
