Economy
BUA Group Vows to Crash Prices Flour, Sugar, Others
Adedapo Adesanya
The 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 rate in the country 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 by government has caused prices of foodstuff to skyrocket at the market and at the moment, the price of a 50kg bag of rice goes for 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, Nigeria 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 the prices of products that would be produced in the complex.
He said the railway lines would reduce the 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 processed at the complex.
He then noted that the 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 five years ago comprises three factories; a sugar refinery; a flour (pasta) mill; and a power plant.
Sugar Refinery
Speaking 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 storage 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.
Pasta Production
“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 which is going to complement whatever we are importing from Brazil,” the BUA Group top shot said.
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, expressed that 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.
By Adedapo Adesanya
The United Kingdom via the British High Commission in Abuja has launched two flagship economic reform programmes – the Nigeria Economic Stability & Transformation (NEST) programme and the Nigeria Public Finance Facility (NPFF) -as part of efforts to support Nigeria’s economic reform and growth agenda.
Backed by a £12.4 million UK investment, NEST and NPFF sit at the centre of the UK-Nigeria mutual growth partnership and support Nigeria’s efforts to strengthen macroeconomic stability, improve fiscal resilience, and create a more competitive environment for investment and private-sector growth.
Speaking at the launch, Cynthia Rowe, Head of Development Cooperation at the British High Commission in Abuja, said, “These two programmes sit at the heart of our economic development cooperation with Nigeria. They reflect a shared commitment to strengthening the fundamentals that matter most for our stability, confidence, and long-term growth.”
The launch followed the inaugural meeting of the Joint UK-Nigeria Steering Committee, which endorsed the approach of both programmes and confirmed strong alignment between the UK and Nigeria on priority areas for delivery.
Representing the Government of Nigeria, Special Adviser to the President of Nigeria on Finance and the Economy, Mrs Sanyade Okoli, welcomed the collaboration, touting it as crucial to current, critical reforms.
“We welcome the United Kingdom’s support through these new programmes as a strong demonstration of our shared commitment to Nigeria’s economic stability and long-term prosperity. At a time when we are implementing critical reforms to strengthen fiscal resilience, improve macroeconomic stability, and unlock inclusive growth, this partnership will provide valuable technical support. Together, we are laying the foundation for a more resilient economy that delivers sustainable development and improved livelihoods for all Nigerians.”
On his part, Mr Jonny Baxter, British Deputy High Commissioner in Lagos, highlighted the significance of the programmes within the wider UK-Nigeria mutual growth partnership.
“NEST and NPFF are central to our shared approach to strengthening the foundations that underpin long-term economic prosperity. They sit firmly within the UK-Nigeria mutual growth partnership.”
By Aduragbemi Omiyale
A strategic partnership aimed at accelerating the growth, digital capacity, and sustainability of Nigeria’s 40 million Micro, Small and Medium Enterprises (MSMEs) has been signed by MTN Nigeria and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).
The collaboration will feature joint initiatives focused on digital inclusion, financial access, capacity building, and providing verified information for MSMEs.
With millions of small businesses depending on accurate guidance and easy-to-access support, MTN and SMEDAN say their shared platform will address gaps in communication, misinformation, and access to opportunities.
At the formal signing of the Memorandum of Understanding (MoU) on Thursday, November 27, 2025, in Lagos, the stage was set for the immediate roll-out of tools, content, and resources that will support MSMEs nationwide.
The chief operating officer of MTN Nigeria, Mr Ayham Moussa, reiterated the company’s commitment to supporting Nigeria’s economic development, stating that MSMEs are the lifeline of Nigeria’s economy.
“SMEs are the backbone of the economy and the backbone of employment in Nigeria. We are delighted to power SMEDAN’s platform and provide tools that help MSMEs reach customers, obtain funding, and access wider markets. This collaboration serves both our business and social development objectives,” he stated.
Also, the Chief Enterprise Business Officer of MTN Nigeria, Ms Lynda Saint-Nwafor, described the MoU as a tool to “meet SMEs at the point of their needs,” noting that nano, micro, small, and medium businesses each require different resources to scale.
“Some SMEs need guidance, some need resources; others need opportunities or workforce support. This platform allows them to access whatever they need. We are committed to identifying opportunities across financial inclusion, digital inclusion, and capacity building that help SMEs to scale,” she noted.
Also commenting, the Director General of SMEDAN, Mr Charles Odii, emphasised the significance of the collaboration, noting that the agency cannot meet its mandate without leveraging technology and private-sector expertise.
“We have approximately 40 million MSMEs in Nigeria, and only about 400 SMEDAN staff. We cannot fulfil our mandate without technology, data, and strong partners.
“MTN already has the infrastructure and tools to support MSMEs from payments to identity, hosting, learning, and more. With this partnership, we are confident we can achieve in a short time what would have taken years,” he disclosed.
Mr Odii highlighted that the SMEDAN-MTN collaboration would support businesses across their growth needs, guided by their four-point GROW model – Guidance, Resources, Opportunities, and Workforce Development.
He added that SMEDAN has already created over 100,000 jobs within its two-year administration and expects the partnership to significantly boost job creation, business expansion, and nationwide enterprise modernisation.
By Adedapo Adesanya
The Nigerian Exchange (NGX) Limited is seeking review of the controversial Capital Gains Tax increase, fearing it will chase away foreign investors from the country’s capital market.
Nigeria’s new tax regime, which takes effect from January 1, 2026, represents one of the most significant changes to Nigeria’s tax system in recent years.
Under the new rules, the flat 10 per cent Capital Gains Tax rate has been replaced by progressive income tax rates ranging from zero to 30 per cent, depending on an investor’s overall income or profit level while large corporate investors will see the top rate reduced to 25 per cent as part of a wider corporate tax reform.
The chief executive of NGX, Mr Jude Chiemeka, said in a Bloomberg interview in Kigali, Rwanda that there should be a “removal of the capital gains tax completely, or perhaps deferring it for five years.”
According to him, Nigeria, having a higher Capital Gains Tax, will make investors redirect asset allocation to frontier markets and “countries that have less tax.”
“From a capital flow perspective, we should be concerned because all these international portfolio managers that invest across frontier markets will certainly go to where the cost of investing is not so burdensome,” the CEO said, as per Bloomberg. “That is really the angle one will look at it from.”
Meanwhile, the policy has been defended by the chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, who noted that the new tax will make investing in the capital market more attractive by reducing risks, promoting fairness, and simplifying compliance.
He noted that the framework allows investors to deduct legitimate costs such as brokerage fees, regulatory charges, realised capital losses, margin interest, and foreign exchange losses directly tied to investments, thereby ensuring that they are not taxed when operating at a loss.
Mr Oyedele also said the reforms introduced a more inclusive approach to taxation by exempting several categories of investors and transactions.
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