In a significant move to support efforts aimed at making rice more affordable in Nigeria, BUA Foods Plc, a leading food conglomerate majority owned by Nigerian billionaire Abdul Samad Rabiu, has announced that it will maintain the prices of its BUA Rice.
This decision aligns with the company’s sales projections, which are expected to rise due to the recent upgrade of its rice mill in Kano, with an annual production capacity of 200,000 tonnes using locally sourced rice paddy.
BUA Foods’ dedication to the local economy is evident through its recently upgraded 200,000-tonnes-per-annum rice mill in Kano, which utilizes locally sourced rice paddy.
By relying less on foreign exchange for rice production, the company can maintain the prices of its rice products, contributing to the affordability of rice in the country.
The upgraded rice mill, coupled with the parboiling plant, will significantly enhance BUA Foods’ rice production capacity, enabling the company to meet the growing demand for its high-quality rice products.
By prioritizing local agricultural resources, BUA Foods is not only supporting Nigerian farmers but also playing a crucial role in achieving self-sufficiency in rice and sugar production through backward integration. Its commitment to sustainable food production has garnered recognition and appreciation from stakeholders across the industry.
The commitment to affordability exhibited by the food group has resonated positively with distributors and consumers alike. Distributors of BUA Foods’ rice products are optimistic about the company’s decision to maintain prices. They anticipate further reductions in rice prices, as BUA Foods has consistently lowered prices for other products like flour, sugar, and pasta.
Despite facing political and economic challenges at the beginning of the year, BUA Foods, under Rabiu, has maintained its dominant position in the Nigerian economy. In the first quarter of 2023, the company achieved remarkable profit growth of 77.1 percent, with profits surging from N22.84 billion ($47.6 million) to N40.46 billion ($87.58 million).
As the company under the leadership of Rabiu continues to prioritize local sourcing and contribute to self-sufficiency, it stands at the forefront of sustainable food production, ensuring that Nigerians have access to affordable, high-quality rice.
