Chairman of BUA Group, Abdul Samad Rabiu, has vowed to cut back the value of rice in Nigeria, warning that people stockpiling the commodity will undergo {financial} losses.
Talking with journalists after a gathering with President Bola Tinubu on the Presidential Villa on Thursday, Rabiu credited the federal authorities’s import responsibility waiver for important meals gadgets with serving to to ease the nation’s meals inflation.
“Meals costs are coming down in Nigeria and we’re doing rather a lot to help that effort,” he stated.
The coverage, launched in 2024, allowed for the duty-free importation of commodities like brown rice, maize, wheat, and sorghum.
In keeping with Rabiu, the transfer disrupted worth manipulation by hoarders who usually buy grain in the course of the harvest season and drive up prices after shortage units in.
“Loads of these hoarders are literally crying now and dropping cash,” he stated. “You will need to defend our farmers, however we even have 250 million Nigerians paying greater than they need to due to the actions of some.”
Rabiu revealed that BUA Meals has already imported sufficient rice to final till the tip of the yr. With stockpiles in place, the corporate is poised to counter any makes an attempt to govern costs.
“I’m hopeful that rice costs won’t go greater than what they’re at this time. Hoarders will suppose twice now — in the event that they hoard, they may lose cash,” he stated.
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He additionally famous that the Rice Millers Affiliation had banned hoarding amongst its members.
On the difficulty of cement costs, Rabiu defined that the present excessive value is essentially as a result of devaluation of the naira, not worth gouging by producers.
“One greenback is N1,600. Even when you purchase cement at N9,000 per bag, that’s N180,000 per tonne — round $110 to $120, which is globally aggressive,” he stated.
He added that working prices, significantly for gasoline and spare elements, have tripled in naira phrases, placing strain on producers.
Nonetheless, Rabiu introduced a major concession: BUA Cement and Dangote Cement have agreed to freeze costs for any contractor concerned within the federal authorities’s Renewed Hope infrastructure initiatives.
“We’re doing this to help the President’s agenda. There can be no improve for the foreseeable future for these engaged on authorities initiatives,” he stated.
The settlement can be formalized in a letter to be despatched to the Ministry of Works subsequent week. Rabiu additionally praised Works Minister Dave Umahi for pushing ahead with plans to construct sturdy concrete roads throughout the nation.
