Abdul Samad Rabiu, Chairman of BUA Group, has committed to further reducing the prices of rice and other essential food commodities, building on the notable price declines observed over the past year.
He lauded President Bola Tinubu for his strategic decision to waive customs duties on imported food items, attributing this “foresight” to the significant easing of food inflation across the country.
In July 2024, the Tinubu administration implemented a suspension of customs duties on key imported food products to mitigate rising food prices.
Addressing State House Correspondents following his meeting with President Tinubu on Thursday, Rabiu highlighted that BUA Foods aligned closely with the government’s policy, facilitating the importation of substantial quantities of wheat, maize, and rice to bolster domestic supply.
“At the time, food prices were really very high last year. For example, the price of rice was about N100,000 or thereabout per 50-kilo bag. The flour was about N80,000 per bag and maize was about N60,000 per 50 kilo bag, and pasta above N20,000 per Carton. So what we did was, we keyed into that policy and BUA was able to import quite a lot of wheat, maize and rice.
“And the moment the shipment started coming, we started processing, we crushed the prices of some of these commodities. And today I’m happy to inform you that the price of rice is about N60,000 from what it was last year at N110,000. Flour is today N55,000 Naira per 50 kilo bag.
“Maize is about N30,000. And this happened because of Mr President’s foresight and vision by introducing that one-off duty waiver for a period of six months, and with that, we’ve been able to bring down the prices of these commodities,” Rabiu said.
The billionaire businessman further explained the causes of the food price increases and how the President’s policy helped to curb the trend.
“So, what has been happening and a lot of people probably don’t know this, is that Nigerians, a lot of companies in Nigeria usually buy a lot of paddy. That is rice paddy. Rice Paddy is what you use to process rice. So, the moment the harvest season starts, a lot of people will now buy a lot of these paddy and hold it for a period of three to four months. The moment the season finishes, then the price will double. So a lot of people don’t know that, but that has always been the problem.
“That does not really in any way affect the farmer, because the farmer is getting his four to N500,000 per ton of paddy. But the people that are buying and holding for three to four months, once the season finishes, it goes back up to N800,000. Hence why you are getting N110,000 per bag.
“So, what that intervention did at the time when we brought in was to create an issue for those hoarders. Because 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.
So a lot of those holders are actually crying now and losing money.”
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He said that the Rice Millers Association has come together to address the issue of hoarding by some companies, adding that the association will not allow any of its members to hoard rice.
“What we are doing as rice Millers is that we want to ensure that rice Millers are not buying and hoarding Paddy, although at the end of the day, it’s quite difficult to stop that. But what is happening is that once they know that there is rice availability imported, because BUA has imported enough rice to last us until the end of the year, for example.
“So, they know that if they try to hot rice and try to take it up, Bucha is there and will crash the price. So I am hopeful that at the end of the day, the price of rice going forward is not going to go any higher than what it is today.
“And I’m sure as soon as the season starts, the farmers will get the price they’ve always gotten, and the price of rice is going to stay the same, because people will be wary of hoarding, because if they hoard it is going to be a problem for them, because they might lose money. So that is on rice.
Rabiu took the opportunity to thank His Excellency for his foresight and vision, admitting that he initially did not expect the plan to succeed but they decided to participate by importing and providing support. He noted that as a result, prices had come down and affirmed their commitment to continue supporting government efforts to ensure food prices keep decreasing.
Rabiu also observed that when prices were high, many people were vocal about it, but now that prices were falling, few acknowledged the improvement. Nonetheless, he expressed happiness that food prices were coming down and would continue to do so, crediting BUA Foods’ efforts in supporting the government’s goal to reduce food costs.