The Chairman of BUA Group, Abdul Samad Rabiu, has announced plans to further reduce the prices of rice and other food items in Nigeria. This decision comes on the heels of the company’s successful importation of wheat, maize, and rice, made possible by President Bola Tinubu’s waiver on customs duties for imported food items.
Significant Price Drops Already Recorded
According to Rabiu, BUA Foods has been able to slash prices due to the policy. The price of rice, for instance, has dropped from around N100,000 to N60,000 per 50-kilogram bag. Similarly, flour now costs N55,000 per 50-kilogram bag, down from N80,000, while maize is now N30,000 per 50-kilogram bag, down from N60,000.
How Hoarding Fueled Price Hikes
Rabiu attributed the previous price hikes to hoarding by companies that buy rice paddy during harvest seasons and sell at inflated prices later. He explained that the imported rice has disrupted this trend, forcing hoarders to sell at lower prices. The Rice Millers Association, of which BUA Foods is a part, is working to prevent member companies from engaging in hoarding practices.
Future Price Stability
Rabiu expressed optimism that rice prices will remain stable going forward, thanks to the availability of imported rice and the association’s efforts to curb hoarding. He thanked President Tinubu for his foresight in introducing the duty waiver policy, which has helped bring down food prices in Nigeria. With BUA Foods’ continued imports and commitment to supporting government efforts, Rabiu is confident that prices will continue to drop.
Key Quotes
- “We keyed into the policy and imported quite a lot of wheat, maize, and rice. We’ve been able to bring down prices, and I’m happy to inform you that the price of rice is now N60,000 from what it was last year at N110,000.”
- “The moment we imported, we were selling, and those orders had a lot of paddy, they could not sell, and the price now came down, and it is still down.”
- “We’re working to ensure that rice millers are not buying and hoarding paddy… We’re hopeful that the price of rice going forward is not going to go any higher than what it is today.”