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 Modupe Gbadeyanka
The Dangote Refinery located in the Lekki area of Lagos State has been described as a game-changer for Nigeria’s economy because of its significance to the country’s sustainable growth.
This was the view of the Ogun State Chamber of Commerce, Industry, Mines, and Agriculture (OGUNCCIMA) through its president, Mr Niyi Oshiyemi.
“The Dangote Refinery is a game-changer for Nigeria’s economy. With a capacity to refine 650,000 barrels of crude oil daily, it has reduced Nigeria’s reliance on imported petroleum products, conserved foreign exchange, and fortified our energy security.
“This milestone reinforces the critical role the private sector plays in national development,” Mr Oshinyemi said, noting that, “The refinery’s operations have created employment for Nigerians at all levels while fostering technology transfer and skills acquisition. This has strengthened local businesses and equipped them with the tools to compete in domestic and global markets.”
The emphasis on local content has been a cornerstone of Dangote Refinery’s strategy. By sourcing materials locally and partnering with indigenous companies, the refinery has supported the growth of Nigerian enterprises and encouraged investments in infrastructure, engineering, and technology.
The ripple effects of the Dangote Refinery extend beyond the energy sector. Its presence has catalyzed industrialization by attracting investments in related sectors such as petrochemicals, manufacturing, and transportation. This multiplier effect has significantly expanded Nigeria’s industrial base and enhanced the nation’s economic competitiveness.
“This refinery is a shining example of what can be achieved through visionary leadership and investment in strategic sectors. It demonstrates Africa’s potential to compete globally and foster regional integration,” Mr Oshiyemi remarked.
In addition to its economic contributions, Dangote Refinery has maintained a strong commitment to corporate social responsibility. The Dangote Group’s investments in education, healthcare, and infrastructure have improved the quality of life for many Nigerians and strengthened community resilience.
“Dangote Refinery exemplifies the role of private sector enterprises in driving social progress alongside economic development. Its initiatives in healthcare and education are building a brighter future for Nigerians,” the OGUNCCIMA chief noted.
He urged stakeholders across public and private sectors to emulate the Dangote Refinery’s innovative approach to development. By fostering partnerships and investing in transformative projects, Nigeria can achieve sustainable economic growth and reduce its reliance on external resources.
“This refinery stands as a model for what is possible when the private sector leads with vision and commitment. We call on all stakeholders to collaborate and replicate such success stories to build a resilient, self-reliant, and prosperous Nigeria,” Mr Oshiyemi concluded.
By Adedapo Adesanya
The House of Representatives on Wednesday passed the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for the next three years (2025-2027).
In passing the MTEF, the lower chamber’s committees on Finance, Petroleum Upstream, and Petroleum Downstream were tasked to investigate reports from the Revenue Mobilization, Allocation, and Fiscal Responsibility Commission (RMAFC) alleging that the Nigerian National Petroleum Company (NNPC) Limited’s withheld N8.48 trillion as claimed subsidies for petrol.
Additionally, the investigation will address the Nigeria Extractive Industries Transparency Initiative (NEITI) report that claimed the NNPC failed to remit $2 billion (N3.6 trillion) in taxes to the federal government.
The committees were further directed to verify the total cumulative amount of unremitted revenue (under-recovery) from the sale of Premium Motor Spirit (PMS) by the NNPC between 2020 and 2023.
Some of the recommendations in the MTEF as adopted by the house are; that the projected oil benchmark prices are $75, $76.2 and $75.3 per barrel in 2025, 2026 and 2027, respectively.
Three-year projections for domestic crude oil production are 2.06 million barrels per day, 2.10 million barrels per day and 2.35 million barrels per day for the subsequent years of 2025, 2026 and 2027.
The country’s economic growth rate forecast, measured by the gross domestic product (GDP) was put at 4.6 per cent, 4.4 per cent and 5.5 per cent for the years 2025, 2026 and 2027, respectively.
By Adedapo Adesanya
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has said the price of Premium Motor Spirit, also known as petrol, being sold by the old Port Harcourt Refinery, which resumed production on Tuesday, is N75 per litre higher than that sold by the Dangote Refinery.
This was revealed by the association’s Public Relations Officer, Mr Joseph Obele, during the official reopening ceremony of the refinery, which is now operating at a capacity of 60,000 barrels per day.
Business Post reports that the lifting price of Dangote’s petrol product is N990 per litre. However, the refinery announced a N20 discount on Sunday, which is only available to marketers buying a minimum of 2 million litres of the fuel.
Mr Obele, a former chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN) at the Port Harcourt Deport who initially applauded the federal government for revitalising the old refinery, expressed concern over the pricing disparity between petrol supplied by the Nigerian National Petroleum Company (NNPC) Limited and the Dangote Refinery.
According to him, while Dangote Refinery sells petrol to marketers at N970 per litre, NNPC’s price stands at N1,045, a difference of N75 per litre.
He said the N75 price differential is a steep margin for businesses, particularly for an industry where profitability hinges on competitive pricing.
However, Mr Obele described the refinery’s restoration as a significant step in reducing Nigeria’s dependence on imported petroleum products.
He revealed that the Group Chief Executive Officer of NNPC Limited, Mr Mele Kyari, has promised to address the issue and harmonise prices to mitigate the impact on marketers and consumers.
The reopening of the Port Harcourt Refinery I is expected to enhance local production capacity and reduce reliance on imports, a move welcomed by stakeholders across the sector.
However, concerns over pricing disparities underscore the need for continuous reforms to stabilise the downstream sector of the petroleum industry.
The reopening has also sparked anticipation for the rehabilitation of other state-owned refineries including the second refinery in Port Harcourt as well as the Warri and Kaduna structures.
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