The Chairman of BUA Foods Plc, Abdul Samad Rabiu, has attributed the rising cost of foodstuffs in Nigeria to the greed of distributors and producers.
Rabiu made this remark on Thursday while speaking at the company’s 7th Annual General Meeting held in Abuja.
BUA Chairman highlighted the efforts of BUA Foods to keep prices low, stating that the company’s products remain the cheapest in the market despite deliberate attempts by competitors to drive prices up by limiting production.
Rabiu specifically cited the price of flour, explaining that while BUA Foods maintained its price at N50,000 per bag for an extended period, other companies raised their prices to as high as N70,000 per bag.
He accused distributors of taking advantage of the situation, marking up prices and making significant profits.
“At one point, customers were making almost N20 million per truck of 75 tonnes of flour,” Rabiu revealed.
He further explained that despite BUA Foods’ efforts to keep prices down, competitors intentionally halted production to create scarcity, further driving up costs.
Rabiu also praised President Bola Tinubu for granting duty waivers on food imports, noting that this would help reduce the cost of food products in the country.
However, he reiterated that the actions of distributors and other producers have had a negative impact on the market, contributing to the continued rise in food prices.
Looking ahead, Rabiu expressed optimism about BUA Foods’ growth, stating, “By next year, we believe we are going to be bigger than our competitors.”
He emphasized that the company remains committed to providing affordable food products despite the challenges in the industry.
