BUA Group Chairman, Abdul Samad Rabiu, has committed to further reducing the prices of rice and other essential food items in Nigeria, following significant price drops achieved over the past year.

Speaking to State House Correspondents after meeting with President Bola Tinubu on Thursday, Rabiu revealed that rice prices have already decreased from approximately N110,000 to N60,000 per 50kg bag, representing a substantial 45% reduction.

The billionaire businessman credited the price reductions to President Tinubu's policy intervention that suspended customs duties on imported food items in July 2024, a measure implemented to combat soaring food inflation.

"At the time food prices were really very high last year. The price of rice was about N100,000 or thereabout per 50 kilo bag. The flour was about N80,000 per bag and maize was about N60,000 per 50 kilo bag, and pasta above N20,000 per carton," Rabiu stated.

"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, we crushed the prices of some of these commodities," he added.

The BUA Chairman highlighted current prices of essential food items, noting that flour now sells for N55,000 per 50kg bag, while maize has dropped to approximately N30,000, attributing these reductions to the President's "foresight and vision."

Warning to Food Hoarders

Rabiu also issued a stern warning to food hoarders, revealing their market manipulation tactics that have been driving up prices. He explained that many companies purchase rice paddy during harvest season and deliberately hold stock for three to four months until prices double.

"The moment the harvest season starts, a lot of people will now buy a lot of these paddy and hold it for a period of three to four months. The moment the season finishes, then the price will double," he explained.

According to Rabiu, this practice does not benefit farmers, who typically receive N400,000 to N500,000 per ton of paddy regardless. Instead, hoarders purchase at these prices and later sell at inflated rates of up to N800,000 per ton when supplies tighten.

"What that intervention did at the time when we brought in was to create an issue for those hoarders. Because the moment we imported, we were selling, and those hoarders had a lot of paddy, they could not sell, and the price now came down, and it is still down. So a lot of those hoarders are actually crying now and losing money," he said.

The businessman disclosed that the Rice Millers Association has united to address the hoarding issue, pledging that the association will not permit any of its members to engage in such practices moving forward.

This development comes as welcome news for Nigerian consumers who have been grappling with high food prices amid broader economic challenges in the country.