The price of a 50-kilogramme bag of rice has fallen by 27 percent, dropping to N58,000 from N80,000 in some remote parts of Nigeria.
This development was highlighted in a recent report by S&P Global.
According to the report, the West African rice market has declined to its lowest level in nearly two years as regional markets are flooded with supplies following India’s removal of export duties on parboiled rice.
The decline in rice prices has been linked to the influx of the commodity through Nigeria’s neighboring Benin Republic.
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Specifically, the report noted that warehouses in the Benin Republic have been filled to capacity with cheaper Indian rice, leading to a significant fall in prices.
Despite the price decline, demand has not risen correspondingly. With prices continuing to slide daily, buyers are adopting a cautious approach, waiting for stabilisation before making purchases,” the report said
Despite the price decline, demand has not risen correspondingly. With prices continuing to slide daily, buyers are adopting a cautious approach, waiting for stabilisation before making purchases, the report said
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The drop in rice prices across parts of the country coincides with the Nigeria Customs Service’s first quarter 2025 report, which identified rice and petrol as the most frequently smuggled goods into Nigeria.
The Comptroller General of Customs, Bashir Adeniyi, stated, “Rice remained the most commonly seized item, accounting for 159 cases involving 135,474 bags valued at N939,309,698.00. Petroleum products followed, with 61 seizures amounting to 65,819 litres, valued at N43,336,160.81.”
Meanwhile, the National Bureau of Statistics’ Consumer Price Index report for March 2025 revealed that Nigeria’s headline inflation rate stood at 24.23 percent, while food inflation was recorded at 21.79 percent.
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