Even though there have been rumours of poisoned rice circulating in southwestern communities in Nigeria, this cereal grain continues to be a staple food choice all over the country. Early 2024 had seen a 50-kilogram bag of rice shoot up to over ₦100,000 – although the price, a year later, has now reduced, hoarders have been found to be at the heart of it and here is the Chairman of BUA Group, Abdul Samad Rabiu, confirming the tactical role his company played in bringing losses to excessive profiteers.

In the markets, the cost of a 50kg bag of rice on average reportedly is being offered to buyers at ₦60,000, but the billionaire opening up to State House reporters after meeting with President Bola Tinubu yesterday says the effort to further lessen rates will continue.

This has been made possible thanks to the Presidency’s 150-day import waivers. With a rare opportunity such as this opening, it culminated in the financial stress that grain hoarders have found themselves in, but is there a chance they might recover?

Before making his prediction, the BUA Group chairman, Rabiu, on Thursday, 15 May, opted to take the State House press corps back when the change began.

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Rabiu explained that BUA’s decision to import large quantities of wheat, maize, and rice under the government’s waiver policy flooded the market with supply, effectively breaking the hoarders’ grip on pricing. As shipments arrived and processing began, food prices plummeted.

At the time, food prices were really very high last year. For example, the price of rice was about ₦100,000 or thereabout per 50-kilo bag. The flour was about ₦80,000 per bag and maize was about ₦60,000 per 50-kilo bag, and pasta above ₦20,000 per carton. So what we did was, we keyed into that policy and BUA was able to import quite a lot of wheat, maize and rice.

Soon after this came the effect. According to the chairman, signs of a positive outlook were revealed the moment the shipment started coming; we started processing, [and] we crushed the prices of some of these commodities. And today I’m happy to inform you that the price of rice is about ₦60,000 from what it was last year at ₦110,000. Flour is today ₦55,000 Naira per 50-kilo bag.

Maize is about ₦30,000. And this happened because of Mr President’s foresight and vision by introducing that one-off duty waiver for a period of six months, and with that, we’ve been able to bring down the prices of these commodities.

How hoarders manipulated the market

The chairman broke down the hoarders’ strategy, explaining that they buy grains cheaply from farmers in remote areas, store them in warehouses, and wait for scarcity to drive up prices.

Once demand spikes, they release limited quantities at inflated rates, forcing consumers to pay far beyond the actual market value.

So, what has been happening, and a lot of people probably don’t know this, is that Nigerians, a lot of companies in Nigeria, usually buy a lot of paddy. That is, [a] rice paddy. [A] rice paddy is what you use to process rice. So, the moment the harvest season starts, a lot of people will now buy a lot of paddy and hold it for a period of three to four months.

The moment the season finishes, then the price will double. So a lot of people don’t know that, but that has always been the problem.

He adds that when the hoarders who had the grace to make direct purchases from farmers at the rate of ₦500,000 per ton of paddy decide to hold their stock for three to four months, once the season finishes, they make price go up to ₦800,000. Hence why buyers had to get ₦110,000 per bag.

This practice has long been a source of frustration for Nigerians, particularly in urban centres where food prices are disproportionately high compared to rural areas. By controlling supply, hoarders have dictated market prices, making essential commodities unaffordable for millions.

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Earlier, a Meiza Nigeria report published on 7 March 2025, dived into this. At the time, food hoarders were facing their karma due to excessive surplus in the markets. The sudden availability of grains meant that hoarders, who had stockpiled food expecting continued scarcity, were now struggling to sell at inflated rates, leading to massive financial losses.

Rabiu’s warning to hoarders since the past two months was clear: BUA Group will keep crashing food prices, ensuring that Nigerians are no longer subjected to artificial inflation by profiteers.

Ayodele Johnson

Ayodelé is a Lagos-based journalist and the Content and Editorial Coordinator at Meiza. All around the megacity, I am steering diverse lifestyle magazine audiences with ingenious hacks and insights that spur fast, informed decisions in their busy lives.