Dangote and Flour Mills slam BUA for alleged suspension of sugar sale

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Dangote Sugar Refinery Plc and Flour Mills of Nigeria Plc have reprimanded BUA Foods Plc for accusing them of suspending the sale of sugar.

BUA Foods had in an infomercial on Monday said Flour Mills had suspended sugar sales because the 2022 raw sugar allocation was denied by the government.

He also accused Dangote Sugar of halting sales of the product in an attempt to create a shortage and drive up prices.

But in a press release on the Nigerian Exchange Limited on Thursday, Dangote Sugar called BUA’s claim false.

He said, “As required by the Nigerian Exchange Limited Regulations, DSR wishes to strongly refute the allegations and assertions in their entirety, as such false claims may mislead the market and give BUA an unfair competitive advantage.”

“We believe that this behavior by BUA is concerning and appears to conflict with anti-competition rules. Last year, just before the start of Ramadan (the Islamic holy month of fasting), BUA made similar false allegations against company that it was engaged in “price-fixing” and not honestly pursuing the upstream integration project.

“In response to this, we issued a press release to refute the false allegations and filed a formal complaint with the Anti-Competition Commission. Another formal complaint was filed with the commission on February 14, 2022, and we await their actions to remedy the situation.

Dangote Sugar said that according to its plan, it continued to supply sugar to meet market demand.

Flour Mills said in a statement it had no outstanding compliance issues with the National Sugar Development Board, adding that this was confirmed by the board’s latest raw sugar allocation for 2022.

“On the contrary, we were judged as the most successful backward integration program,” the company said, adding, “BUA Foods’ assertion of FMN’s supposed suspension of sugar sales based on of conformity is incorrect and indeed capable of creating a false impression on the market, which is contrary to the interest of consumers.

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