BUA Blasts Dangote, Flour Mills Over Petition, Tells Minister, ‘BUA’s Refusal To Enslave Nigerians Through Hiked Sugar Price Cause of Acrimonies’
Nigeria’s major conglomerate, BUA Plc, has dismissed the allegation of sabotage against its sugar company, BUA Sugar, by two manufacturers in the sugar industry, Dangote Industry and Flour Mills Nigeria Plc, as fraudulent and misleading, claiming that the company’s refusal to agree to enslave Nigerians through abitriary hike in the price of the commodity led to the conspiracy to blackmail the company.
In a response to the letter from the Minster of Trade Otunba Niyi Adebabayo, requesting BUA’s response to the petition, the Chairman of BUA, Alhaji Abdul Samad Rabiu, while dismissing the claim of sabotagge in the petition, stated that the petition stemmed from BUA’s refusal to agree to plans by the two petitioners to hike the price of sugar during the Ramadan period.
According to Rabiu, he had turned down overtures made to BUA by the petitioners, who he said told him that the Ramadan period was the right time to make good money, saying he put his foot down on the overtures.
”Aftrer failing to that, they petitioned the Federal Government that BUA was breaking the law by selling sugar locally, Instead of by export”, he said.
Rabiu further stated that the same Dangote who conspired with Messrs John Coumantaros, the Greek/Amerocan , Charman of Flour Mills of Nigeria, had in recent past muscled out of competition in the cement industry in Nigeria, through a petiton to the EFCC, which led to the arrest and detention of Coumantaros and his elderly father, forcing the Coumantaros family to sell the cement business, to save themselves.
Rabiu, therefore urged the Minister to stand firm, to uphold and prtect the integrity of the office of the Presidentof the Federal Republic of Nigeria, whose order is being called to question by the petitioners, as the President is the only constitutional authority empowered to approve an Export Production Zone (EPZ).
He said, ” If the petion is allowed, BUA’s effort at contributing to the development of the Nhgerhan Sugar Master Plan (NSMP) and the Backward Integrahon Plan (BIP), through the huge BUA Sugar Portharcourt Refinery , mainly for export, which is about to be completed, with over $250 million US Dollars already spent, and which currently employs over 1,000 Nigerians, will be adversely jeopardised.
A major war has been brewing in the Nigeria sugar industry for some time now and the bubbles seemed to have burst with Dangote’s decision to petition the Federal Government asking the Ministry of Trade to shut down BUA Group’s Sugar Refinery located in Port Harcourt.
In the letter dated 28th January, 2021 signed by Aliko Dangote himself as the Chairman Dangote Industries Limited, the billionaire claimed that when the BUA Sugar refinery was opened , he warned the Government and they told him that’ no new refinery would be allowed to operate in Nigeria’. Dangote accused BUA of operating with impunity by contavening the laws as laid down in the National sugar policy by selling it’s products locally instead of producing for export alone.
BUA in its own defence sent to the Honourable Minister of Trade however clarified issues by stating that the law allows it to sell inside Nigeria. Attaching the enabling permits and approval BUA stated that because of the connivance of the two major sugar manufacturers to hike the price of Sugar during the Ramadan period, the law allows it to sell locally.
BUA also warned that DANGOTE group and the other major player have not been involved in any backward integration project, rather they depend on 80% raw sugar allocation which is detrimental to the Nigerian economy in long term analysis. BUA on the other hand has been involved in backward integration project with BUA’s Lafiagi Sugar BIP set to be completed in 2022.
Meanwhile, BUA also noted that at the centre of this fight to force FG to close BUA Sugar refinery down is the price war.
Last year, before Ramadan, sugar sold for around 18,000 Naira per bag. But as Ramadan fasting started the price jumped to 30,000 per bag. The people had no choice but to buy it because they needed a lot of it during the period. So the manufacturers were smiling to the bank. BUA group noticed the trend and decided that it had to change. There was no reason to increase the price during Ramadan simply because the demand is high.
Usually the increase happens about one month to commencement of fasting
In a preemtive move to prevent being caught on the guard, it was claimed that already, BUA group has dragged the Trade Minister to court to ensure that the operations of the sugar refinery is not tampered with all because of the desperate attempt by Dangote Group to monopolize the sugar trade in Nigeria
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