Food Scarcity in Nigeria: BUA Foods Chairman Blames Greedy Distributors and Producers
Abdul Samad Rabiu, the Chairman of BUA Foods Plc, has attributed the artificial scarcity and rising cost of foodstuffs in Nigeria to the activities of some greedy distributors and producers. Rabiu made this statement at the company’s 7th annual general meeting in Abuja, where he also commended President Bola Tinubu for granting duty waivers on food imports into the country.
According to Rabiu, BUA products are the cheapest in the market, but it’s challenging to price them low due to competition from other companies producing similar products. He cited the example of flour, which was selling at N70,000 per bag a few months ago, while BUA retained its price at N50,000. However, when distributors saw that BUA was not budging, they added N20,000 to the price and sold it at N70,000 per bag, making huge profits.
Rabiu accused these companies of deliberately stopping production to create scarcity, which led to the price increase. He noted that BUA’s production is substantial, but there are two other companies that are bigger than them. However, the company believes that by next year, they will be bigger than their competitors.
The development comes a few days after BUA Foods announced that it signed an agreement with FAVA, one of the world’s leading pasta equipment manufacturing companies, to expand its pasta production facility. Rabiu stated that the collaboration is part of the company’s strategic roadmap towards contributing to food security in Nigeria.
Meanwhile, the Managing Director of BUA Foods, Ayodele Abioye, emphasized the company’s proposed expansion, which he said is long overdue. Abioye highlighted that despite the economic hardship and lull in commercial activities, the company has continued to thrive and now has a market capitalization drive that has peaked at N7.11 trillion.
The company started listing on the Nigerian Exchange three years ago with just 377 shareholders, but today, they have over 5,000 shareholders. Abioye expressed pride in the company’s growth, saying it’s a huge leap.
