By Ayomide Otitoju
Chairman of BUA Group, Abdul Samad Rabiu, has pledged to further reduce the prices of rice and other essential food items, citing the positive impact of the federal government’s suspension of customs duties on imported food.
Speaking to State House Correspondents on Thursday after a meeting with President Bola Tinubu, Rabiu praised the administration’s decision to grant a six-month waiver on food imports, describing it as a timely intervention that has significantly eased food inflation.
“In July 2024, food prices were at alarming levels. A 50kg bag of rice was selling for about N100,000, flour for N80,000, maize for N60,000, and pasta over N20,000 per carton,” Rabiu said. “With the import duty waiver, BUA Foods was able to import significant volumes of wheat, maize, and rice, which allowed us to crash the prices.”
He revealed that rice now sells for around N60,000, flour for N55,000, and maize for N30,000 per 50kg bag, attributing the reduction to the influx of imported commodities and increased processing by local manufacturers like BUA.
Rabiu also highlighted the role of hoarding in previously inflated food prices, explaining that certain companies buy and store large quantities of paddy during harvest season, only to release them at higher prices post-harvest. “This practice inflates prices, not for the benefit of farmers, but for middlemen profiting off scarcity,” he said.
According to him, BUA’s large-scale imports disrupted the activities of these hoarders, forcing them to release stock at lower prices. He added that the Rice Millers Association is now working to curb hoarding among its members.
“BUA has imported enough rice to meet demand until year-end,” Rabiu assured, expressing confidence that the market would remain stable and resistant to future price surges. “Anyone trying to hoard rice now will risk losses because of our continued market presence.”
He further praised President Tinubu’s policy foresight, saying, “I didn’t initially believe the waiver would work, but it did. Prices are coming down, and we will continue to support the government’s efforts to keep them down.”
Rabiu called on the public to acknowledge the improvement in food affordability, noting that much attention was paid when prices were high, but little recognition is given now that costs are falling.
