LIVE UPDATES
The Chairman of BUA Group, Abdul Samad Rabiu, has issued strong warnings to hoarders, indicating that they should anticipate further declines in the prices of rice and other food products in the nation.
After a meeting with President Tinubu on Thursday, Rabiu informed State House Correspondents that the recent reduction in food prices is attributed to BUA Foods' commitment to engage with President Bola Tinubu’s waivers policy regarding imported food.
This policy enabled the company to import significant quantities of wheat, maize, and rice.
He commended President Bola Tinubu for the waiver on imported food items, emphasizing that this initiative played a critical role in reducing food prices across the country.
“Last year, food prices were exorbitantly high. For instance, a 50-kilo bag of rice cost around N100,000, flour was about N80,000 per bag, maize was approximately N60,000 for a 50-kilo bag, and pasta exceeded N20,000 per carton. By aligning with this policy, BUA managed to import a substantial amount of wheat, maize, and rice."
Rabiu highlighted that the actions of some Nigerian rice firms to hoard rice paddy have resulted in a dramatic surge in rice prices in the country. “A lot of people may not be aware that many companies in Nigeria tend to buy an excessive amount of paddy at harvest time.”
He explained that rice paddy is essential for processing rice. Consequently, during the harvest season, many individuals stockpile paddy for approximately three to four months, leading to doubled prices once the season concludes a fact that many are unaware of, according to him.
The billionaire entrepreneur criticized those who hoard rice paddy, cautioning them that business practices would need to change.
“The intervention from our imports served to challenge those hoarders. Once we brought in our products, we were selling effectively, making it difficult for those holding paddy to sell theirs, resulting in reduced prices, which remain low. Therefore, many hoarders are now distressed and facing financial losses,” he stated.
Rabiu remarked that President Bola Tinubu’s waiver policy on imported products has been a salvation for Nigerians, exacerbating the challenges for rice hoarders.
He indicated that the Rice Millers Association has convened to tackle the hoarding issue among certain companies and assured that the association would not permit any of its members to engage in rice hoarding.
