BUA’s rice revenue soars nearly 3,000% amid soaring food costs in Nigeria

BUA Foods Plc’s rice division recorded an almost 3,000% year-on-year revenue increase in the first half of 2025, signalling a shift within the conglomerate’s operations as Nigeria battles historic levels of food inflation leaving millions struggling to afford staples daily.

According to the company’s unaudited financial results released on Thursday, revenue from rice surged to ₦39.3 billion in the six months ending June 2025, up from just ₦1.3 billion in the same period last year.

While rice remains the smallest contributor to BUA’s diversified portfolio – which also includes flour, sugar, and pasta – the steep rise points to growing efforts by food producers to respond to Nigeria’s deepening food security challenges.

The revenue spike comes against a backdrop of eroding household incomes. Food inflation stood at 24.4% in June 2025, according to the National Bureau of Statistics. Rice, a dietary staple in most Nigerian homes, has been especially affected, with prices rising sharply over the last two years.

In a bid to ease pressures, the federal government in early 2025 introduced a six-month suspension of import duties and taxes on essential food items, including rice, maize, and wheat. The policy enabled companies like BUA to import food commodities in bulk, relieve market shortages, and reduce prices.

In May, BUA Group Chairman Abdul Samad Rabiu credited the policy with enabling the company to import substantial volumes of rice, maize, and wheat. He said the influx of supply helped crash the price of a 50kg bag of rice from around ₦100,000 in 2024 to about ₦60,000 by mid-2025, while disrupting speculative hoarding in the supply chain.

Pivot to Rice

Though the recent gains appear largely driven by imports under the waiver, BUA developed a long-term ambition in rice. In 2017, the company set out to expand its Kano rice mill from 200,000 to 1 million metric tonnes in annual capacity, and building additional milling facilities in Jigawa and Niger States. It also operated an out-grower programme targeting 100,000 rice farmers in northern Nigeria.

BUA’s performance echoes a broader trend. Other major producers—WACOT Rice, Olam Nigeria, Miva Rice, and Golden Penny—are also scaling rice production as demand outpaces supply, and food self-sufficiency becomes a national imperative.

Commenting on the H1 results, Ayodele Abioye, Managing Director of BUA Foods, said:

“We are encouraged by the sustained performance recorded in the second quarter of 2025, amidst an improving macroeconomic environment. Key indicators such as inflation and a deepened exchange rate margin continue to shape consumer behavior and operational decisions. However, our resilience remains evident through consistent top-line and bottom-line growth driven by our unique strategic model.”

He added that the company remains focused on affordability, integrated supply chain efficiency, and expanding capacity across its product lines, with rice now forming a more critical pillar in its forward-looking growth strategy.