Chairman of BUA Group, Alhaji Abdul Samad Rabiu, has credited President Bola Tinubu’s duty waiver policy on essential food imports as a key factor behind the recent decline in food prices across Nigeria.
Speaking to State House Correspondents on Thursday after a meeting with the President at the Presidential Villa in Abuja, Rabiu highlighted the significant impact of the policy introduced last year.
“Food prices are falling in Nigeria, and we’re actively supporting that effort,” Rabiu said. He recalled that President Tinubu approved a duty waiver for six months on the importation of key staples such as brown rice, maize, wheat, and sorghum—at a time when food prices were at record highs.
He noted that, in 2023, a 50kg bag of rice sold for around ₦100,000, wheat flour went for ₦80,000, maize was about ₦60,000 per 50kg bag, and a carton of pasta cost ₦20,000. Following the waiver, BUA Group imported large quantities of these items, which helped stabilize and lower market prices.
“As the imports began arriving and we started processing them, prices dropped significantly,” Rabiu explained. “Today, rice is down to ₦60,000 per 50kg, flour is ₦55,000, and maize is around ₦30,000.”
He credited the price reduction to President Tinubu’s strategic intervention and criticized hoarding practices that had previously driven up costs. According to him, some companies would buy and store large quantities of paddy during the harvest season, creating artificial scarcity once the season ended.
“Farmers still get paid the same, but hoarders double the prices later. With the imports now available, those hoarders are struggling to sell and are incurring losses,” he added.
Rabiu stressed the need to protect both farmers and consumers, pointing out that while food producers must be supported, 250 million Nigerians should not have to bear inflated prices due to the actions of a few.
He also revealed that BUA Foods has imported enough rice to meet demand until the end of the year and warned that any attempts to hoard would be countered by further price cuts.
“As long as supply remains steady, prices won’t rise beyond current levels,” Rabiu said. “Hoarders will now think twice because the risk of loss is real.”
He expressed concern that while there was public outcry when food prices were high, little recognition was given now that they are falling. Nonetheless, he was optimistic the downward trend would continue.
On the topic of cement, Rabiu argued that current prices are reasonable when viewed in dollar terms, considering currency devaluation and rising input costs. At an exchange rate of ₦1,600 to the dollar, a ₦9,000 bag translates to about $110–$120 per tonne, which he said is comparable globally.
He cited high production costs—such as a ₦15 billion monthly gas bill at BUA’s Obu plant and dollar-denominated expenses for equipment, expertise, and mining—as reasons for price levels.
Despite these challenges, Rabiu said cement manufacturers, including Alhaji Aliko Dangote, have agreed to support the President’s Renewed Hope agenda by freezing cement prices for government-backed infrastructure projects.
“We will maintain current prices for any contractor involved in Renewed Hope projects,” he announced. A formal letter to the Ministry will be issued next week, he added.
Rabiu also praised the Minister of Works, Dave Umahi, for prioritizing concrete roads, which he described as more durable and cost-effective than bitumen.