The Chairman of BUA Foods Plc, Abdul Samad Rabiu, attributed the rising food prices and artificial scarcity in Nigeria to the manipulative activities of certain distributors and producers. He made these remarks on Thursday during the company’s 7th annual general meeting in Abuja, while also commending President Bola Tinubu for granting duty waivers on food imports.
Rabiu highlighted that despite efforts to keep prices affordable, some market players intentionally halted production to inflate costs. “BUA products are the cheapest in the market, yet we face challenges due to competitors’ pricing. A few months ago, while flour prices soared to N70,000 per bag, we kept ours at N50,000, trying to push others to lower their rates. However, they stopped production, creating scarcity and driving prices higher,” Rabiu explained.
He further disclosed that distributors, capitalizing on this scarcity, marked up the prices, making significant profits. “While we maintained a price of N50,000, distributors added N20,000, selling at N70,000 per bag. This allowed some to make almost N20 million per truckload of flour,” he said, adding that this manipulation contributed to the ongoing food price crisis.
Rabiu expressed optimism for the future, stating that BUA Foods, though currently third in the market, expects to surpass its competitors by next year.
The meeting came days after BUA Foods announced a partnership with Italian pasta equipment manufacturer, FAVA, to expand its production capacity. Rabiu emphasized that this collaboration aligns with BUA’s strategic plan to bolster food security in Nigeria.
Managing Director of BUA Foods, Ayodele Abioye, also underscored the company’s growth, revealing its market capitalization now stands at N7.11 trillion, a leap from its N5.8 trillion valuation at listing three years ago. “Despite economic challenges, BUA continues to thrive, expanding our shareholder base from 377 to over 5,000,” Abioye remarked, reaffirming the company’s commitment to democratizing wealth and driving national food security.
