In a country where millions of households struggle daily with soaring food prices and where economic policies often appear disconnected from the realities of the common man, a glimmer of hope emerged through a pragmatic collaboration between the private sector and government.
Abdul Samad Isyaku Rabiu, the billionaire industrialist and Chairman of BUA Group, has offered what many are now describing as a masterstroke, leveraging the Federal Government’s duty waiver to significantly reduce the cost of essential food commodities in Nigeria.
Rabiu, after a recent closed-door meeting with President Bola Ahmed Tinubu , told newsmen how his company had seized the opportunity created by the six-month duty waiver on key food items to import large quantities of wheat, maize, and rice.
The result, as seen on market shelves and in conversations among everyday Nigerians, has been a tangible reduction in food prices, an uncommon relief in the face of Nigeria’s inflationary storms.
“Food prices are coming down in Nigeria and we’re doing quite a lot to support that effort.
“At the time, food prices were very high; the price of rice last year was about N100,000 per 50 kilogramme (kg) bag, and the price of wheat or flour was about N80,000 per bag, maize was about N60,000 per 50 kg bag and pasta about N20,000 per carton,” said Rabiu.
“You will recall that His Excellency President Bola Tinubu granted duty or tariff waivers last year for certain food items like brown rice, maize, wheat, and sorghum to be imported into the country.
“We keyed into that policy and were able to import large quantities of wheat, maize, and rice. Once the shipments started arriving and we began processing, we crushed the prices of these commodities.”
“Today, I’m happy to inform Nigerians that the price of rice is now about N60,000 from what it was last year of N100,000. Flour is today N55,000 per 50 kg bag and maize about N30,000.And this happened because of Mr President’s foresight and vision by introducing that one-off duty waiver for a period of six months,” Rabiu stated.
True to his words, the numbers speak for themselves. Within months, the price of rice dropped from a staggering N110,000 to about N60,000 per 50kg bag. Flour now sells for N55,000, while maize has seen its price dip to approximately N30,000 per bag.
These reductions have not only brought relief to households, but have also sent a strong message to market speculators and middlemen whose manipulative tendencies often exacerbate food inflation in the country.
Before BUA’s intervention, the prices of food items, especially rice, were largely driven by artificial scarcity engineered by speculators.
Paddy hoarding became a manipulative tactic in the industry, enabling some players to dictate market prices. But, BUA Group timely intervention into the domestic market disrupted that cartel-like grip.
“As rice millers, we want to ensure that millers do not buy and hoard paddy. While it is difficult to completely stop hoarding, the availability of rice from BUA, sufficient to last until the end of the year, acts as a deterrent,” Rabiu explained.
Indeed, with BUA bringing in enough rice to stabilise the market, hoarders now face the risk of being undercut, thereby reducing the appeal of such exploitative practices.
“When they know BUA can increase supply and lower prices, hoarding becomes less profitable,” he added.
This approach underscores a broader principle in economic interventions: sometimes, flooding the market with affordable alternatives is a far more effective tool than regulation or enforcement in curbing market manipulation.
The BUA Chairman also addressed the elephant in the room; cement prices. While Nigerians continue to lament the increasing cost of cement, which directly impacts housing and infrastructure development, Rabiu provided an economic context.
“N180,000 is $110, maybe $120 per tonne is reasonable and competitive on a global scale. There’s nowhere in Africa, or anywhere, that you can get the price of cement much lower than 120 dollars. So, the issue is the devaluation of the naira.
“The devaluation happened two years ago, and it was necessary, we needed to do that. And the price of cement at N9,000 is not high, because it’s about $110, $120. Well, N10,000 may be the retail price,” said Rabiu.
Despite the challenges posed by foreign exchange volatility, Rabiu is not resting on his laurels.
He revealed plans to reconstitute the board of the Cement Manufacturers Association of Nigeria (CEMAN) and revive the Cement Technology Institute of Nigeria (CTIN), a move that could bring structure and research-driven innovation to the cement sector.
“We are reorganising the Cement Technology Institute, an institution established years ago when Nigeria imported cement, funded by levies paid by importers,” he said.
This initiative could be key in improving local cement production efficiency and eventually influencing price reduction through technological advancement and better coordination among stakeholders.
Beyond the recent importation of rice, maize, and wheat, this is not the first time BUA Group is stepping in to provide economic relief to Nigerian consumers.
In 2023, during a period of intense price volatility in the cement market, BUA voluntarily reduced the ex-factory price of cement from around N5,500 to N3,500 per bag.
This rare move, announced in a press statement, was intended to make housing more affordable and reduce the inflationary pressure on building materials.
While some industry watchers were skeptical about how sustainable the price cut would be, it underscored a consistent pattern in BUA’s operations, leveraging economies of scale and internal efficiencies to pass on value to the Nigerian consumer.
At the time, Rabiu noted that BUA’s increased production capacity, especially with new lines commissioned in Edo and Sokoto States, allowed the company to reduce prices without incurring losses.
In the food segment, BUA Foods has also made strategic investments to support affordability.
The company operates one of Nigeria’s largest flour mills and sugar refineries and has recently expanded its edible oil business.
These operations contribute to stabilising prices in their respective markets by ensuring consistent supply, quality, and competitive pricing.
Rabiu’s testimony stands as a prime example of what can be achieved when government policies and private sector efficiency intersect constructively.
President Tinubu’s waiver, which many feared would lead to unchecked profiteering, was instead transformed by BUA into a platform for consumer benefit.
This is a model worth replicating. It demonstrates that even within Nigeria’s often chaotic policy environment, visionary industrialists and responsible corporate leadership can translate policy leeway into public good.
It also subtly rebukes the long-standing culture of blaming government policy alone for price hikes, shifting some accountability back to businesses.
Yet, it must be noted that not all private sector players responded similarly. Many saw the waiver as an opportunity for profit rather than public relief. That BUA chose the latter path speaks volumes about the company’s ethical compass and Rabiu’s sense of national responsibility.
Rabiu , recognises the multifaceted nature of the problem.
“We are doing our part, but government must continue to provide the enabling environment. That includes stable forex, improved infrastructure, and effective monitoring to ensure consumers benefit,” he said.
What makes BUA’s interventions so compelling is not just their impact, but the principles driving them. The company has consistently positioned itself as a socially responsible enterprise, prioritising long-term national interest over short-term gains.
As consumers queue in markets and shops today and notice rice going for N60,000 instead of N110,000, many won’t know the policy and strategic decisions that made it possible. But those who do will agree, sometimes, the real heroes of the economy are not those who make the loudest noise, but those who quietly, effectively, and patriotically do the work.
From job creation across its food and cement plants to community development initiatives, BUA’s track record reflects a blend of profitability and patriotism.
As Nigeria continues to battle food inflation, urban poverty, and dwindling purchasing power, companies like BUA offer a template for what responsible capitalism can look like in a developing economy.
Rabiu’s actions offer a challenge to others in the private sector: it is possible to make money and still put people first.
Nigeria’s food crisis won’t be solved by duty waivers alone. But as BUA’s track records shows, when industrialists act with integrity and foresight, they can become powerful allies in the fight against hunger and hardship.
Rabiu’s BUA Group has, in this moment, set a benchmark that both government and private sector players should aim to surpass, not just replicate.
