BUA’s Abdul Samad Rabiu Vows to Crash Rice Prices, Warns Hoarders of Financial Losses
Billionaire industrialist Abdul Samad Rabiu, chairman of BUA Group, has pledged to crash the price of rice across the country. He warned that those hoarding the essential commodity in hopes of future profit are set for major financial losses.
Speaking to journalists at the Presidential Villa in Abuja after a meeting with President Bola Tinubu on Thursday, Rabiu praised the administration’s duty waiver policy on food imports, describing it as a game-changer in tackling food inflation.
“Food prices are coming down in Nigeria, and we’re doing quite a lot to support that effort,” he said. “The duty waiver granted last year for items like brown rice, maize, wheat, and sorghum was crucial when prices were skyrocketing.”
He cited last year’s peak prices: ₦100,000 for a 50kg bag of rice, ₦80,000 for wheat, ₦60,000 for maize, and ₦20,000 for a carton of pasta. But with BUA and other stakeholders now importing essential food items in large volumes, the tide is turning.
Rabiu took direct aim at middlemen who hoard food products to manipulate market prices. “Hoarders would buy commodities like paddy rice during harvest season and hold them for months until prices doubled,” he explained. “But the duty waiver frustrated their plans. Many are now stuck with unsold stock and suffering heavy losses.”
He emphasised that while it’s important to support Nigerian farmers, the broader interest of 250 million citizens must be prioritised. “The farmer gets his ₦400,000 to ₦500,000 per tonne of paddy regardless. But the hoarders who try to inflate prices artificially – they’re the ones losing out.”
With BUA Foods having imported enough rice to last until the end of the year, Rabiu said the company is positioned to prevent further price hikes and punish speculators attempting to hoard.
“The price of rice will not go higher than it is today. As soon as the season starts, farmers will get their usual rates. But anyone thinking of hoarding should know they’ll lose money,” he warned.
The industrialist expressed confidence that food prices would continue to fall, citing past public frustration over skyrocketing costs and reaffirming his company’s commitment to making staples affordable again.
Turning to the construction sector, Rabiu addressed the spike in cement prices, attributing it squarely to the devaluation of the naira. “Cement at ₦9,000 per bag, or ₦180,000 per tonne, equals roughly $110–$120. That’s competitive with global pricing,” he said.
He added that operational costs have tripled in recent years, with gas bills at the Obu plant now hitting ₦15 billion monthly—up from ₦5 billion just a few years ago. Spare parts, mining, and skilled labour are also dollar-denominated expenses, further straining margins.
Despite these challenges, Rabiu revealed a landmark move to support President Tinubu’s Renewed Hope agenda. In collaboration with Dangote Cement, BUA has agreed to freeze cement prices for all contractors working on government-backed infrastructure projects.
“There will be no price increase for any project under the Renewed Hope initiative,” he confirmed. “We’re submitting a formal letter to the Ministry of Works next week.”
