Chairman of BUA Group, Abdul Samad Rabiu, has vowed to reduce the price of rice in Nigeria, warning that individuals stockpiling the commodity will suffer financial losses.
Speaking with journalists after a meeting with President Bola Tinubu at the Presidential Villa on Thursday, Rabiu credited the federal government’s import duty waiver for essential food items with helping to ease the country’s food inflation.
“Food prices are coming down in Nigeria and we’re doing quite a lot to support that effort,” he said.
The policy, introduced in 2024, allowed for the duty-free importation of commodities like brown rice, maize, wheat, and sorghum.
According to Rabiu, the move disrupted price manipulation by hoarders who typically purchase grain during the harvest season and drive up costs after scarcity sets in.
“A lot of those hoarders are actually crying now and losing money,” he said. “It is important to protect our farmers, but we also have 250 million Nigerians paying more than they should because of the actions of a few.”
Rabiu revealed that BUA Foods has already imported enough rice to last until the end of the year. With stockpiles in place, the company is poised to counter any attempts to manipulate prices.
“I’m hopeful that rice prices will not go higher than what they are today. Hoarders will think twice now — if they hoard, they will lose money,” he said.
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He also noted that the Rice Millers Association had banned hoarding among its members.
On the issue of cement prices, Rabiu explained that the current high cost is largely due to the devaluation of the naira, not price gouging by producers.
“One dollar is N1,600. Even if you buy cement at N9,000 per bag, that’s N180,000 per tonne — around $110 to $120, which is globally competitive,” he said.
He added that operating costs, particularly for gas and spare parts, have tripled in naira terms, putting pressure on producers.
Still, Rabiu announced a significant concession: BUA Cement and Dangote Cement have agreed to freeze prices for any contractor involved in the federal government’s Renewed Hope infrastructure projects.
“We’re doing this to support the President’s agenda. There will be no increase for the foreseeable future for those working on government projects,” he said.
The agreement will be formalized in a letter to be sent to the Ministry of Works next week. Rabiu also praised Works Minister Dave Umahi for pushing forward with plans to build durable concrete roads across the country.