The Chairman of BUA Group, Abdul Samad Rabiu, has pledged to further reduce the prices of rice and other food items, which he said have already seen a significant drop over the past year.
He praised President Bola Tinubu for his decision to grant waivers on imported food items, describing the move as “foresighted” and instrumental in curbing food price inflation across the country.
In July 2024, the Tinubu administration suspended customs duties on imported food items to tackle soaring food costs.
Speaking to State House Correspondents following a meeting with President Tinubu on Thursday, Rabiu said BUA Foods embraced the policy and was able to import substantial quantities of wheat, maize, and rice.
“At the height of last year’s price surge, a 50kg bag of rice was around ₦100,000, flour was ₦80,000, maize was ₦60,000, and a carton of pasta was over ₦20,000. We took advantage of the import duty waiver, brought in large shipments, and immediately began processing. This led to a sharp reduction in prices,” Rabiu explained.
He reported that rice now sells for around ₦60,000, flour for ₦55,000, and maize for approximately ₦30,000—figures he attributed directly to the President’s intervention.
Rabiu went on to explain how price inflation had previously been fuelled by hoarding, especially of rice paddy. He revealed that many companies traditionally buy large amounts of paddy during harvest, store it for months, and then sell when supply drops, driving prices up.
He stated that the recent imports disrupted this practice, leaving hoarders with unsold stock and forcing prices down. “Many of those hoarders are now incurring losses,” he said.
He also noted that the Rice Millers Association of Nigeria is taking steps to discourage hoarding among its members.
“We want to ensure that millers do not stockpile paddy. And because BUA has imported enough rice to last through the year, there’s little incentive to hoard, as any attempt to artificially inflate prices will be undercut by available stock,” he explained.
Rabiu expressed optimism that rice prices would remain stable or even decline further, ensuring that farmers continue to earn fair value while preventing undue inflation from speculative hoarding.
He concluded by thanking President Tinubu again, stating, “I initially didn’t think the waiver would have such an impact. But we embraced the policy, and the result is that food prices are now falling—and will continue to fall. That’s our commitment at BUA Foods.”