Food Prices in Nigeria Set to Plummet Further as BUA Group Pledges Continued Support

In a move that is expected to bring relief to millions of Nigerians, the Chairman of BUA Group, Abdul Samad Rabiu, has announced plans to further reduce the prices of rice and other essential food items. This comes on the heels of a significant decrease in prices over the past year, thanks in part to the foresight of President Bola Tinubu, who granted a waiver on imported food items to curb inflation.

According to Rabiu, the decision by President Tinubu’s administration to suspend customs duties on imported food items in July 2024 has had a profound impact on the market. "The price of rice, for example, has dropped from around N110,000 per 50 kilo bag to approximately N60,000," he explained. "Flour now costs N55,000 per 50 kilo bag, while maize is selling for about N30,000." These reductions, Rabiu noted, have been made possible by BUA Foods’ ability to import large quantities of wheat, maize, and rice, which has helped to stabilize the market and drive down prices.

Rabiu also shed light on a lesser-known issue that has been contributing to high food prices in Nigeria: hoarding by some companies. "Many companies buy large quantities of rice paddy during harvest season and hold onto it for three to four months, causing prices to double when the season ends," he revealed. However, thanks to the intervention of BUA Group and the Rice Millers Association, which has pledged not to allow its members to engage in hoarding, this practice is being addressed.

The Rice Millers Association has taken a proactive stance against hoarding, with Rabiu stating that the organization will not permit its members to hoard rice. This joint effort is expected to have a lasting impact on the market, keeping prices low and ensuring that Nigerians have access to affordable food.

As the BUA Group continues to work towards reducing food prices, Nigerians can expect to see even more affordable options on the market. With the support of the government and the cooperation of the Rice Millers Association, the prospects for food security in Nigeria look brighter than ever. As Rabiu aptly put it, "The intervention has created an issue for those hoarders, and they are now losing money. We are committed to making food more affordable for all Nigerians."