BUA Warns Hoarders, Vows To Crash Rice Price In Nigeria

Rice Price in Nigeria – Abdul Samad Rabiu, the Chairman of BUA Group, announced that his company intends to reduce rice prices, cautioning that those who are hoarding the product will incur financial losses.

In a statement to State House Correspondents following a meeting with President Bola Tinubu at the presidential villa in Abuja, Rabiu remarked, ‘Food prices in Nigeria are decreasing, and we are making significant efforts to assist the current administration’s initiatives.’

He further mentioned his collaboration with Aliko Dangote, the head of the Dangote Group, to stabilize cement prices, particularly for those participating in the Federal Government’s Renewed Hope Initiative projects.

He said, “You will recall that His Excellency granted duty, waiver last year for certain food items like brown rice, maize, wheat and sorghum.

“At the time, food prices were very high; the price of rice last year was about N100,000 per 50 kilogramme (kg) bag, and the price of wheat or flour was about N80,000 per bag, maize was about N60,000 per 50 kg bag and pasta about N20,000 per carton.”

According to him, hoarders used to buy up commodities like paddy rice during harvest season and hold them for months to force up prices, but waiver policy frustrated those hoarding food.

“The moment the season finishes, then the price will double. That has always been the problem. And that does not really affect the farmer in any way because the farmer is getting his N400,000 to N500,000 per tonne of paddy.

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“But the people that are buying and hoarding for three to four months, once the season finishes, it goes back up to N800,000,” he said.

He said many of those involved in hoarding are actually crying now and losing money. “It is important to protect our farmers, but at the same time, we also have 250 million Nigerians that are paying a lot more than what they should be paying, because of what few companies or individuals are doing.

“So, I am hopeful that at the end of the day, the price of rice, going forward, will not go any higher than what it is today. I’m sure as soon as the season starts, the farmers will get the price they’ve always gotten, and the price of rice is going to stay the same, because people will be wary of hoarding, because if they hoard, they will lose money,” he said.

In discussing the matter of cement, he linked the elevated cost of cement to the devaluation of the naira, emphasizing that its price in dollars remains competitive on a global scale.

He stated that one dollar equals N1,600. Presently, the cost of cement is approximately N9,000 per bag, or for 20 bags, which equals one tonne, the total amounts to N180,000.

This translates to about $110 to $120 per tonne. It is noteworthy that there is no region in Africa, or elsewhere, where cement is available at a price significantly lower than $120.

Therefore, the primary concern is the devaluation of the naira.

“We are paying at one of my factories, the Obu plant, N15 billion every month for the gas that we consume. Two, three years ago, we were paying N5 billion. So, it’s like three times. Our spares, our experts, mining costs and all of that, are paid in dollars.”

He however promised that an intervention is underway, saying “What we have done, though, because I raised that with Mr President, is that we have decided; Alhaji Aliko Dangote of Dangote Cement approached me and I concurred with him, that we should do everything to support Mr President’s Renewed Hope agenda.

“And we have decided that we are going to freeze the price of cement to anybody that is involved, or for any contractor that is involved with the Renewed Hope projects. What it means is that any company or anybody that is doing a project under the Renewed Hope, the price of cement will be frozen. There will be no increase for the foreseeable future.”