Finally, Nigerian billionaire Set to Crash Rice Prices, Other Food Items

• Abdul Samad Rabiu credited President Bola Tinubu’s import duty waiver policy for significantly reducing food prices, especially rice, maize, and wheat, over the past year
• Rabiu explained that the policy curbed hoarding practices by increasing imports, which helped lower commodity prices from last year’s highs
• He expressed optimism that rice prices will remain stable going forward, thanks to sufficient imports and continued government support

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Abdul Samad Rabiu, the chairman of the BUA Group, promised to further reduce the cost of rice and other food goods, which he said had already dropped in the previous 12 months.

He said that President Bola Tinubu's "foresight" contributed to the country's food price collapse and praised him for waiving import duties.

The Tinubu administration announced in July 2024 that customs charges on imported food goods would be suspended in an effort to combat food inflation.

After meeting with President Tinubu on Thursday, Rabiu told State House correspondents that BUA Foods had embraced that approach and successfully imported a significant amount of rice, maize, and wheat.

“At the time, food prices were really very high last year. For example, the price of rice was about N100,000 or thereabouts per 50-kilo bag. Flour was about N80,000 per bag, maize about N60,000 per 50-kilo bag, and pasta above N20,000 per carton. So what we did was we keyed into that policy and BUA was able to import quite a lot of wheat, maize and rice.

“And the moment the shipment started coming, we started processing, and we crushed the prices of some of these commodities. Today, I’m happy to inform you that the price of rice is about N60,000, down from about N110,000 last year. Flour is now N55,000 per 50-kilo bag.

“Maize is about N30,000. This happened because of Mr President’s foresight and vision by introducing that one-off duty waiver for a period of six months, and with that, we’ve been able to bring down the prices of these commodities,” Rabiu said.

The billionaire entrepreneur went on to discuss the reasons for the rise in food prices and how the President's policies assisted in reversing the trend.

“So, what has been happening — and a lot of people probably don’t know this — is that many companies in Nigeria usually buy a lot of paddy. That is rice paddy, which is used to process rice. When the harvest season starts, many people buy a lot of this paddy and hold it for a period of three to four months. Once the season finishes, the price doubles. Many people don’t know that, but that has always been the problem.

“That does not really affect the farmer, because the farmer is getting about four to N500,000 per ton of paddy. But the people who buy and hold for three to four months, once the season finishes, the price goes back up to N800,000. Hence why you see N110,000 per bag.

“So, the intervention we made when we imported was to create a problem for those hoarders. Because when we imported and sold, those who held a lot of paddy could not sell theirs, so the price came down and remains down. Many of those holders are now losing money.”

Rabiu further explained the approach of rice millers to prevent hoarding.

Prices of rice, tomatoes, other food items soars

Legit.ng reported that prices of essential food items in Lagos markets continue to fluctuate, causing confusion and frustration among both consumers and retailers.

A recent survey conducted by Daily Trust revealed notable price differences between major markets such as Ajah Ilaje, Sabo Market in Ikorodu, and Mile 12 International Market.

Key staples like tomatoes, rice, eggs, and cooking oil are seeing significant price increases, with some items experiencing sudden and unpredictable hikes.

Source: Legit.ng