Management of BUA Group has promised to crash prices of major food items it produces like sugar, flour, pastas and many others. Since 2016, when Nigeria slipped into recession, the purchasing power of Nigerians has remained low.

Though inflation has been on a steady decline, prices of food items have continued to rise and last month, the Nigerian government closed its borders to tackle smuggling of food items into the nation. This action has caused prices of foodstuff to skyrocket at the market and at the moment, the price of a 50kg bag of rice is N24,000 to N26,000. Before the border closure, it was selling for N14,000 to N16,000.

WHAT WOULD SUPPORT THE CRASHING OF PRICES
General Manager of BUA Ports and Terminals, Mr Mohammed Lile, speaking ahead of the commissioning of the company’s foods manufacturing complex in Port Harcourt, Rivers State, this month, told CNBC Africa that efforts would be made to bring down prices of its products.

Mr Lile explained that the huge factory in Port Harcourt was built in line with the federal government of Nigeria’s policy on self sufficiency, stating that the location of the plant gave it a good advantage to bring down prices of products that would be produced in the complex.

He said the railway lines would reduce cost of transportation which would make it easy to access parts of the country, adding that the sea was also available for ships to berth with raw materials that would be processed at the complex. He then noted that use of gas would supplement the lack of power that faced production in the country which had been powered by its partners, Oando.

Mr Lile, in the interview with CNBC Africa and monitored by Business Post, noted that the $400 million project which started over 5 years ago comprises three factories: a sugar refinery; a flour (pasta) mill; and a power plant. On the sugar refinery which has a 720,000 metric tonnes capacity per annum, Mr Lile said, “This sugar refinery has a storage dome of 60,000 tonnes capacity for raw sugar.”

As for the power plant, Mr Lile disclosed that the plant had three sources that generated 24 megawatts of power.
“We have the turbine, which is 10 megawatts, we have the gas generators which is 12 megawatts, and then we have the diesel generator which is 2 megawatts,” he said.

Explaining how the factories would work together, Mr Lile noted that the imported raw materials, sugar and flour will be stored in the storage dome and processed in the plant. “We import raw sugar which goes into the dome, it is processed, packaged, and then into the market.

"We import raw wheat which goes into the silos, which has a capacity of about 32,000 metric tonnes, processed into flour and then to pasta. We also have the Semolina line,” Mr Lile said. He also noted that the complex has 5 pasta lines.

Mr Lile said that the group had keyed into the Federal Government’s backward integration programme to ensure self sufficiency. “We have acquired land in Lafiaji, Kwara state and Bassa, in Kogi state. The sugar plantation is already ongoing, generating employment which is also going to give us the raw materials to complement whatever we are importing from Brazil."

He said this was an identical step it took when it started cement production when it went from just packaging to full production with the establishment of its plant in Edo state. He added, “We have also expanded the Sokoto plants to 2 million tonnes per annum.”

Mr Lile, however, said the major challenge faced by the company is with the Nigerian Port Authority following the decommissioning of the Terminal B Jetty in the Port Harcourt, Rivers State, Port complex, which is operated by the entity. He noted that the issue was bringing about a loss of job opportunities for many Nigerians.

SOURCE: https://businesspost.ng/2019/10/07/bua-group-vows-to-crash-prices-flour-sugar-others/amp/

The only tribe allowed to stand in Dangote's way.

BUA and DANGOTE will always vow to crash prices of their goods.

But it's their trucks that keeps crashing and crushing Nigerians.

That will be nice

.

Is that REVENGE ?

Patiently waiting for it cos so many family has migrated from rice that a de Rica cost 400 to spaghetti that cost just 200, and you would hear Shebi it's same starch and carbohydrates.

This is a welcome development

Good development only if they have Fg's backing.

Dangote no dey joke oo

Good move, it will also bring more employment

Let them please open the boarder those bastards don't know we're suffering

Buhari & his govt are not interested
in any effort that brings down prices
of foodstuffs .

BUA better be ware!!

Why did the closure of borders come after islamist have concluded their celebrations and some weeks to December when Southerners take holiday?
I'm so sure the border will be reopened by late January. Just wait and see.

Dangote will fight you people

Enough of these theories. Please can you crash the price already and let's start seeing the practical thing? We need more actions now, rather than some abstract representations.

Thank God him and Dangote are aboki, if na southerner talk this one, Fg go just come shut down the company

NwaAmaikpe:




BUA and DANGOTE will always vow to crash prices of their goods.

But it's their trucks that keeps crashing and crushing Nigerians.

How many members of your family have their truck crushed?

Issoryt....but I don't think Alike Dangote will fold his hands and watch that happen.

I vividly remember **IBETO cement ** better cement wey make sense was actually trashed out because of the amount of charges leveled against them by the Federal government...

The people that have shares in Dangote **Dangote Group of company(ies) ain't small children even Obasanjo have share in the group.

Well, I wish BUA all the Best of luck.

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i perceive a fight between BUA and Dangote on the low.

Sukueponmalu:

How many members of your family have their truck crushed?

u lack manner. so the people that dangote trailers are killing daily are not worthy to talk about? why are many youths so daft in dis country. and u expecting Nigeria to be better with someone like u.

benuejosh:
i perceive a fight between BUA and Dangote on the low.

no fight at all.

It's still hot air until you put action to your words, as a Nigerian, we have heard too much lies in a lifetime.

Just as useless as the political class.

God bless you Nairalanders...
May God cause you to favoured today. As you go out may men and women favour you.
May God provide all the resources you need to live comfortably.
May you health be made whole.
May you receive a surprise financial favour today.
Whatever you do today is blessed.
God bless you today in Jesus name. Amen.

Mtheeeeeeeeeeeeeeeeeeeeeeeeeeeeeew

Nice one

princeade86:
u lack manner. so the people that dangote trailers are killing daily are not worthy to talk about? why are many youths so daft in dis country. and u expecting Nigeria to be better with someone like u.

He lacks nothing..he simply put forward a question to someone that typed nonsense instead...and how does such a question relates to youths being daft? If you have a generational problem goan tackle it in your family meeting and stop disturbing us.

About time. But in the meantime, the FG should do something about the hike in the price of rice.

Alright. Be safe