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 Dipo Olowookere
The Nigerian Exchange (NGX) Limited rebounded by 0.32 per cent on Thursday following the interest of investors in Transcorp and 33 other equities.
Yesterday, Transcorp closed as the highest price gainer with a 9.98 per cent rise to settle at N51.80 and was trailed by SCOA Nigeria, which gained 9.88 per cent to trade at N3.78.
Further, Africa Prudential improved its value by 9.87 per cent to quote at N30.60, Tantalizers soared by 9.72 per cent to N2.37 and Caverton flew by 9.52 per cent to N2.76.
Conversely, Sunu Assurances, MRS Oil, and Red Star Express ended the day as the heaviest price losers after giving up 10.00 per cent each to sell for N4.77, N166.50, and N5.94, respectively, as Lasaco Assurance lost 7.99 per cent to finish at N2.65, and UPDC retreated by 6.76 per cent to N2.62.
At the close of business, 34 shares were on the gainers’ chart and 15 shares were on the losers’ log, implying a positive market breadth index and strong investor sentiment.
Business Post reports that the banking space expanded by 0.83 per cent, the consumer goods index increased by 0.78 per cent, the insurance sector jumped by 0.18 per cent, and the industrial goods industry chalked up 0.01 per cent, while the energy counter lost 0.09 per cent, with the commodity sector closing flat.
When the bourse ended for the session, the All-Share Index (ASI) was up by 344.24 points to 106,780.72 points from 106,436.48 points and the market capitalisation grew by N216 billion to N66.869 trillion from N66.653 trillion.
The level of activity waned on Thursday as 375.5 million stocks worth N10.2 billion exchanged hands in 11,447 deals compared with the 389.6 million stocks valued at N11.3 billion traded in 11,423 deals in the preceding day, indicating a rise in the number of deals by 0.21 per cent and a fall in the trading volume and value by 3.57 per cent and 9.74 per cent apiece.
The activity chart was dominated by banking equities, with GTCO selling 50.0 million units valued at N2.9 billion, Access Holdings exchanged 43.9 million units worth N1.0 billion, Zenith Bank traded 36.5 million units valued at N1.7 billion, Fidelity Bank transacted 27.1 million units for N468.7 million, and UBA sold 19.4 million units worth N705.1 million.
By Aduragbemi Omiyale
Over N402.3 billion was paid in taxes in 2024 by Dangote Industries Limited (DIL) as part of its efforts to support the federal government.
The taxes were paid by the subsidiaries of the pan-African conglomerate comprising Dangote Cement, NASCON, Dangote Packaging Limited among others.
Recall that Federal Inland Revenue Service (FIRS) had in late 2024 recognised DIL and its subsidiary, Bluestar Shipping as the most tax compliant organizations in the country during its Special Day at the 2024 Lagos International Trade Fair organised by the Lagos Chamber of Commerce and Industry (LCCI).
The FIRS is the agency responsible for assessing, collecting and accounting for tax and other revenues accruing to the Federal Government of Nigeria.
The N402.3 billion paid by DIL last year made the company the highest taxpayer in the country.
Speaking during a meeting with some senior media executives in Lagos, the Chief Branding and Communication Officer of Dangote Group, Mr Anthony Chiejina, as a responsible business organisation, DIL and its subsidiaries have never shied away from its obligations either to the government in the form of tax payment at all levels or to host communities in the form of Corporate Social Responsibility (CSR).
According to him, the group’s corporate strategy has evolved just as its businesses have grown, matured and diversified into new sectors and regions over the last four decades, noting that Dangote Group has almost single-handedly taken Nigeria to self-sufficiency in cement and refined petroleum products and is expanding rapidly across Africa.
Dangote Group and its subsidiaries were recognised as number one most compliant in tax payment in the country, just as the cement business at another occasion won three awards at the FMDQ Gold Awards in Lagos as the most active business in the Foreign Exchange market.
Dangote Cement Plc was adjudged as the Largest Commercial Paper Quotation on FMDQ and Single Largest Corporate Debt Issue on FMDQ. Also, Dangote Industries Ltd also emerged as the “Most active corporate in the foreign exchange market”.
By Adedapo Adesanya
The Minister of State for Petroleum Resources (Gas), Mr Ekperikpe Ekpo, has said that the Ajaokuta-Kaduna-Kano (AKK) and Obrikom, Obiafu, and Oben (OB3) gas pipelines when completed will change Nigeria’s fortune in the gas market.
He added that this would help the nation’s economy, drive industrialisation and job creation.
Mr Ekpo declared that Nigeria’s gas sector is undergoing a historic transformation under President Bola Tinubu’s administration, with strategic infrastructure projects set to position the country as a leading gas-powered economy.
Speaking recently at the Nigerian International Energy Summit, he stressed that the planned completion of the 614-kilometer AKK gas pipeline this year, will significantly boost gas supply to industrial and commercial hubs.
“The 614-kilometer AKK pipeline, which is scheduled for completion in 2025, will significantly boost gas supply to key industrial and commercial hubs. This project, along with the OB3 pipeline, will stimulate industrialization, create jobs, and attract investments in manufacturing and power generation.
“These projects are a testament to our commitment to positioning Nigeria as a leading gas-powered economy by 2030 under the Decade of Gas Initiative,” Mr Ekpo said.
He noted that several moves and partnerships have been established by the Nigerian National Petroleum Company (NNPC) Limited.
“These partnerships have resulted in the establishment of five mini LNG plants—Prime LNG, BUA LNG, Highland LNG, NGML/GasNexus LNG, and LNG Arete—all in Ajaokuta, Kogi State. By liquefying gas from existing pipelines and transporting it to areas in need, these plants will enhance economic growth and energy security, particularly in the Northern region.”
The minister also lauded the Group CEO of NNPC Limited, Mr Mele Kyari, for his commitment to expanding mini LNG projects across all geopolitical zones, aligning with President Tinubu’s vision of using natural gas to drive economic growth.
Mr Ekpo reaffirmed the federal government’s commitment to alternative energy solutions, citing the nationwide Compressed Natural Gas, CNG program as a key initiative.
“With over 100,000 vehicles targeted for conversion and a $200 million investment in CNG infrastructure, this programme is a critical step toward reducing transportation costs and promoting energy sustainability,” he said.
Mr Ekpo emphasized that all these efforts align with Nigeria’s Decade of Gas Initiative, which aims to position the country as a leading gas-powered economy by 2030.
“The federal government is actively attracting investments in LNG, CNG, and gas-to-chemicals to create a business-friendly environment that fosters industrialization, job creation, and energy security.
“These projects are a testament to our commitment to a cleaner and more prosperous future for Nigeria,” he added.
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