Abdul Samad Rabiu, the chairman of BUA Group, has pledged to significantly reduce rice prices in Nigeria, cautioning that individuals or companies hoarding the commodity will face financial losses. His statement came after a meeting with President Bola Tinubu at the presidential villa in Abuja, where he highlighted the positive impact of the government’s duty waiver policy on essential food imports.
Rabiu emphasized that the exemption from import duties, which was instated last year for key food items like brown rice, maize, wheat, and sorghum, has been instrumental in driving down food prices. He noted the stark contrast in figures from last year, when a 50-kilogram (kg) bag of rice sold for around N100,000, compared to current market conditions.
“The moment the harvest season ends, prices traditionally double due to hoarding, but the new policy has thwarted this practice, leaving those hoarding stocks with unsold goods,” Rabiu explained. “Many of those hoarders are now losing money. While it’s important we support our farmers, we must also protect the 250 million Nigerians facing inflated prices due to the actions of a few individuals.”
BUA Foods to Counter Hoarding Efforts
Rabiu stated that BUA Foods has already imported sufficient rice to meet demand through the end of the year, asserting that the company is well-positioned to cut prices for anyone attempting to manipulate the market. “I am hopeful that the price of rice will stabilize and not increase beyond current levels. Hoarders will find it unprofitable to stockpile,” he added.
He expressed satisfaction with the ongoing decline in food prices, acknowledging previous public outcry over price hikes, and committed to ensuring that prices will continue to drop.
Cement Prices Linked to Naira Devaluation
In a related discussion, Rabiu addressed the rising cost of cement, attributing it to the devaluation of the naira. He explained that while the price of cement in Nigeria may seem high at approximately N9,000 per bag, it remains competitive globally when converted to dollars.
“The devaluation two years ago was necessary, and we are currently paying substantial amounts for gas and other operational costs, further impacting prices,” he remarked. Rabiu also announced a collaborative effort with Alhaji Aliko Dangote to freeze cement prices for contractors involved in governmental projects under the Renewed Hope agenda.
He commended the initiative led by Dave Umahi, the Minister of Works, to construct durable and cost-effective concrete roads, stating that a formal proposal will be submitted to the ministry in support of these efforts.