Tag Archives: BUA Group

BREAKING: Dangote Petitions Trade Ministry To Shut BUA Sugar Refinery Down

A major war has been raging 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 contravening the laws as laid down in the National sugar policy by selling its products locally instead of producing for export alone.

BUA in its own defense 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 the 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 a backward integration project with BUA’s Lafiagi Sugar BIP set to be completed in 2022.

Over a 250million dollars is believed to have been spent on the export-focused BUA sugar refinery already and it is also employing over 1,000 Nigerians.

Meanwhile, BUA also noted that at the center of this fight to force FG to close the 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 at 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

When the other manufacturers got across to BUA, Samad Rabiu refused. They put pressure on him, saying it was the right time to make good money but he put his feet down.

After failing to do that, they petitioned the Federal Government that he was breaking the law by selling sugar locally instead of for export.

A source however claimed that already, BUA group has dragged the Trade Minister to court to ensure that the operations of the sugar refinery are not tampered with all because of the desperate attempt by Dangote Group to monopolize the sugar trade in Nigeria.

COVID-19: BUA Group Partners with Abia, Donates Ambulances+Photos

The management of BUA Group Ltd has donated three (3) medical ambulances to Abia State Government to strengthen the fight against COVID-19 pandemic.

Speaking while receiving the three (3) Kinglong Medical Ambulances presented by the Managing Director, BUA Group Ltd to the Abia State Government at Government House, Umuahia, the Governor of Abia State, Dr. Okezie Ikpeazu, assured that the vehicles will be put into maximum use in the fight against Coronavirus.

The Governor noted that Abia State Government has begun community testing even to the Local Government level in order to help contain the spread of the virus at the community level.

The State Chief Executive used the opportunity to disclose that additional laboratories for COVID-19 testing will soon be functional at the Federal Medical Center (FMC), Umuahia, and at Michael Okpara University of Agriculture, Umudike, bringing the number of laboratories in the State to five and expressed hope that these will ensure that at least thirty per cent (30%) of the Abia population is tested.

The Governor thanked the management of BUA Group for their timely intervention in the battle against COVID-19. He noted that the Group has shown care and concern for Abia state and humanity.

Speaking earlier, the representative of the Managing Director and General Manager, BUA Group Ltd, Alhaji Mohammad Ibrahim, stated that the Group partners with the Federal and State Governments in the fight against coronavirus through donations in cash, food and ambulances to States.

He lauded the Governor on his developmental strides in the State which he described as footprints in the sands of time and used the occasion to congratulate the Governor on his recent survival of COVID-19 infection.

Highlights of the visit was the presentation of three fully equipped Kinglong brand ambulances for the fight against coronavirus.