Investigation has found that BUA Group quietly raised the price of foods, including a bag of sugar, a bag of wheat, and a carton of spaghetti, days after reporting a decrease in the ex-factory price of cement.
On October 1, the management of one of the largest cement companies in the nation declared that the product’s ex-factory price will be reduced to N3,500 per bag.
But while dealers fought to inform clients that the price drop only applies to businesses that supply the commodity straight from the factory, the announcement was met with widespread fury.
Investigation, however, showed that BUA Foods had secretly raised the cost of its pasta, wheat, and sugar products.
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A visit to a few stores at the well-known Singer Market in Kano state, the largest food market in Northern Nigeria, revealed price increases of at least N1000 for a carton of spaghetti, N2,000 for a bag of sugar, and N3,500 for a bag of flour.
Checks have also revealed that while the price of sugar, spaghetti, and a bag of wheat were recently sold at N44,000 per bag, N8,100 per carton, and N32,500, respectively, the commodities are currently being sold at N47,500, N9,000, and N34,500.
A BUA Foods dealer in Kano informed our reporter that the rise in commodity prices came as soon as the business announced the reduction of its cement product.
They noticed the price hike this week, according to the dealer, who wished to remain unnamed since he was not authorised to speak.
He stated that a box of IRS Spaghetti, a pasta product made by BUA Foods, costs N9,000 at corporate price, up from N8,400 lately, which suggests that the retail price may be as high as N10,000.
Additionally, he added, “We have seen an increase this week. A bag of flour now costs N34,500 instead of the N31,000 to N32,000 that it did last week. The price of a bag of flour has increased by almost N2,000 and is now a business price.
Although there is no set price for sugar, it is currently traded on the market for up to N48,000. Just last week, it cost between N44,500 and N45,000 a bag. I was informed that he is selling each bag for N46,500.
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“They just upped their payment to us this week. They typically phone us to communicate. If there are any developments, they will merely send us messages.
He emphasised, “I also want to tell you that all these costs are company prices.
Investigations also showed that the cost of the goods had already increased at retail establishments in Kano.
A grocery store owner named Mustapha told our reporter that he sells a bag of 50kg sugar for N49,000 after purchasing it for N47,500 from dealers in the Karkasara section of the Tarauni Local Government area.
Ibrahim Musa, a different store owner in the Fagge Local Government, reported seeing an increase in the price of sugar, flour, and IRS pasta.
He claimed to have paid N48,000 for a 50 kg bag of sigar, N33,000 for a bag of flour he supplied, and N9,100 for IRS pasta.
He bemoaned the fact that, despite the increase, he is recording a low market since, in his estimation, it took him around two weeks to consume an entire bag of flour.
“You are aware that no one has any money in their possession. I had to buy this flour because the last time it was provided, it took about two weeks to finish.
“We’re seeing a weak market. The patronage is low, and people are living in poverty. We simply give God praise and ask for His help, added Ibrahim.
Additionally, customers complained about the recent increase in BUA food products.
One of the main clients who buys bags of flour for baking Gurasa, a traditional food manufactured locally in Kano, bemoaned the fact that the cost of the item has continued to rise.
She recalled that the price had increased from just N5,500 per bag three years prior and said that it had continued to rise daily since then.
Ironically, just three years ago, a bag of flour cost N5,500. Now, the price of BUA plower has tripled. The cost keeps rising.
“I just paid N34,500 for a sack of flour. Iyami made an appeal to the BUA firm, saying, “We thus call on you to cut the price of flour as we heard that you reduced the price of a bag of sugar.
A prominent dealer in the state who was speaking on behalf of the company said he could no longer communicate, making attempts to contact BUA corporation fruitless.
