BUA CEO, Rabiu, Accuses Food Producers of Artificial Scarcity to Inflate Prices
By Okafor Joseph Afam
September 27, 2024
Abdul Samad Rabiu, Chairman of BUA Foods Plc, has sharply criticized competitors in the food industry, accusing them of deliberately creating scarcity to drive up prices. In a statement released on Thursday, Rabiu revealed that his company had struggled to maintain lower prices due to the actions of rival producers.
Rabiu pointed to the rising cost of flour as an example, stating that while BUA Foods kept prices at N50,000 per bag, other companies escalated prices to N70,000 by halting production and creating scarcity. “When we were at N50,000, the distributors added N20,000 and were selling at N70,000 per bag,” he said, noting that customers profited greatly from these inflated prices.
The BUA Foods CEO expressed frustration with these tactics, criticizing the practice of limiting supply to boost prices, which he said harms consumers and the economy. He also reiterated BUA Foods’ commitment to keeping prices low despite industry challenges, expressing optimism that his company’s increasing market share would enable it to better influence pricing.
Rabiu also called for more transparency and regulation in the industry to prevent anti-competitive practices and protect consumers from unfair price hikes.
