Rita Odafe
On Thursday, Abdul Samad Rabiu, BUA Group’s chairman, declared that cement prices will remain unchanged for contractors working on projects linked to the Federal Government’s Renewed Hope initiative, aiming to assist President Bola Tinubu’s economic recovery mission.
This announcement followed a meeting between President Bola Tinubu and Rabiu at the Presidential Villa in Abuja, discussing BUA Foods’ role in reducing food prices in the nation.
After their discussion, Rabiu shared with reporters his satisfaction regarding the decline in food prices when compared to last year.
He went on to clarify that the higher costs of BUA cement are primarily due to the naira’s flotation.
Rabiu noted that the decision to stabilize cement prices for the Renewed Hope initiative was reached in collaboration with Alhaji Aliko Dangote, chairman of Dangote Cement, to mitigate rising costs on vital infrastructure projects throughout the country.
He stated: “We have resolved to maintain the price of cement for any contractor associated with the Renewed Hope projects,” Rabiu mentioned. “There will be no increase for the foreseeable future. This is our contribution to support Mr President’s Renewed Hope Initiative.”
Rabiu also mentioned that the Cement Manufacturers Association of Nigeria (CEMAN) has been restructured to uphold this commitment, appointing Engineer Yusuf Binji of BUA Cement as the new chairman.
The Cement Technology Institute of Nigeria (CTIN), dedicated to training workers in the construction field, will also receive renewed funding — between ₦15 and ₦20 billion each year — through a levy of ₦20 to ₦30 per bag of cement sold by its members.
He commended the Minister of Works, David Umahi, for advocating for concrete roads, which he noted are more economical and long-lasting compared to traditional bitumen roads.
Rabiu praised President Tinubu’s decision to offer a six-month duty exemption on specific food imports last year, calling it transformative in addressing food inflation.
He pointed out that BUA Foods took advantage of this policy to import significant amounts of rice, maize, and wheat, significantly reducing food prices across the country.
“At the peak of the crisis last year, a 50kg bag of rice was priced over ₦110,000,” Rabiu recalled.
“Currently, it costs about ₦60,000. Flour has decreased from ₦80,000 to ₦55,000 per bag, and maize has dropped from ₦60,000 to ₦30,000.”
He attributed this major price drop to the interruption of hoarding behaviors in the rice supply chain, facilitated by the increased availability from BUA’s imports.
“Many used to hoard rice paddy post-harvest to create false scarcity. However, with our imports reaching the market, the value of their hoarded stocks minimized, and the market adjusted accordingly,” Rabiu explained.
He added that the Rice Millers Association of Nigeria has since implemented strategies to discourage hoarding among its members, ensuring that any future attempts to manipulate rice prices would be ineffectual.
“We’ve brought in sufficient rice to last until year’s end. Anyone looking to hoard now faces significant losses,” Rabiu cautioned, expressing confidence that prices will stay stable going forward.
He remarked that the benefits of declining food prices often go unnoticed in public conversations.
“When rice was at ₦110,000, everyone was vocal. Now it’s down to ₦60,000, and there’s barely a reaction. However, I’m pleased to report that food prices are decreasing and are expected to keep doing so.”
Rabiu expressed gratitude towards President Tinubu for his foresight and leadership in policy-making, reiterating BUA Group’s commitment to supporting governmental efforts aimed at fostering economic stability and community welfare.
“We will keep doing more to bolster the economy and our nation,” he concluded.
