Dangote Sugar Drags BUA Foods Over Alleged Plans to Suspend Sale of Sugar, Induce Scarcity
- Two FMCG manufacturing giants, BUA Foods and Dangote Sugar Refinery are embroiled in a war of words over allegations of unethical practices
- Dangote Sugar said BUA Foods has engaged in a malicious media war accusing it of wanting to create artificial scarcity of sugar in Nigeria
- The company said BUA Foods has embarked on the media campaign to incite the public against it and influence the government
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The two major sugar manufacturers in Nigeria are up in arms against each other as they throw accusations of wanting to create artificial scarcity of Sugar.
Nairametrics reported that Dangote Sugar is reacting to the allegation by BUA foods that the firm plans to stop the sale of sugar in order to drive artificial scarcity, inflate prices and engage in profiteering.
Source: Getty Images
What Dangote said
The company said that BUA Foods has been circulating damaging rumours through a statement published in several media outlets that Dangote Sugar suspended the sale of sugar to force a price hike.
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It said BUA Foods wants to influence the government through the media to review the denial of allocation to a new competitor.
The firm refuted the allegation and called them false and misleading with the intent to mislead and incite the public against Dangote Sugar thereby giving a competitive edge to BUA Foods.
What happened
BUA Foods had published a disclosure saying that it has dissociated itself from every arrangement to cause artificial scarcity of Sugar in Nigeria through the decision of two other manufacturers.
A statement by Dangote Sugar which was filed with the Nigerian Exchange Limited said it believes that the allegations by BUA is not only disturbing but conflicts with existing standards.
Dangote Sugar said
“Last year, just before the commencement of the Ramadan (the Islamic holy month of fasting), BUA made similar false allegations against the Company that it was engaged in ‘price-fixing’ and not honestly pursuing the Backward Integration Project”.
Dangote, Rabiu companies dominate list of most valuable manufacturing companies in Nigeria
Legit.ng has reported that Dangote cement and BUA cement, owned by Nigeria's richest individuals Aliko Dangote and Abdulsamad Rabiu, have been recognized as the country's two most valuable listed manufacturing companies.
BUA foods another company owned by Abdulsamad sat in the third position while Nestle Nigeria completed the list of top four valuable manufacturing companies.
The ranking of the banks is according to data from Nigerian Exchange Group (NGX) and analysed by Nairametrics.
Source: Legit.ng
