Dangote, BUA tango over sugar price as trade war gets dirty

Two prominent businessmen of northern extraction, Alhaji Aliko Dangote and Alhaji Abdulsamad  Rabiu are currently at each other jugular with the object of discord being the price of sugar.

While the former has petitioned the Ministry of Trade and Commerce, alleging underhand dealings, the other is accusing his traducer of playing to the gallery for refusing to hike the price of the commodity.

Dangote has specifically asked the Federal Government to shut down BUA Group’s Sugar Refinery facility located in Port Harcourt, the Rivers State capital, Rabiu is accused his fellow Kano born businessman of bullying him for refusing to hike the price of the commodity.

In a letter dated 28th January, 2021, Dangote accused BUA of operating with impunity by contravening extant laws as laid down in the National Sugar Policy by selling its products locally instead of producing for export alone.

BUA in its defence, which forms the response to the petition written by Dangote clarified all the issues raised by his traducer, by stating that the law allows it to sell inside the country and that the company has not breached any known law in the course of its operations.

The company further argued that the Dangote Group and some other players in the industry 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.

The company argued that on the other hand it has been involved in backward integration project with BUA’s Lafiagi Sugar BIP set to be completed in 2022.

Over 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 centre of this fight to force FG to close BUA Sugar refinery down is the price war.

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