The Nation Newspaper

Tag: rice price

  • Rice price crashes across Lagos markets

    Rice price crashes across Lagos markets

    Rice prices have dropped drastically in several Lagos markets, easing the burden on consumers.

    The development, however, has raised concern among traders over reduced profits and business sustainability.

    News Agency of Nigeria (NAN) reported that a 50kg of rice is currently selling in Lagos for between N55,000 and N70,000 depending on the brands.

    The traders and consumers who spoke with NAN in separate interviews in Lagos disclosed that the stable food has witnessed a sudden crash in the price.

    They noted that both local and foreign rice brands have witnessed a steep drop in price reversing the surge seen earlier in the year.

    In popular markets such as Oyingbo, Arena (Oshodi), Festac Town and Mile 12, a 50kg bag of local rice that sold for around N85,000 in January now goes for between N60,000 and N70,000.

    Similarly, foreign rice, which was N95,000 at the beginning of the year, currently sells for between N65,000 and N75,000, depending on the brands and market location.

    At the Arena Market, Mrs Precious Okoro, a rice dealer, lamented that the recent crash had left many traders struggling to recover their investments.

    READ ALSO: Why I initially regretted relocating to America – Teju Babyface

     “We are selling at a loss. I bought several bags at N80,000 and N85,000 early this year, and now I have to sell them for as low as N65,000. The fall came suddenly, and it’s been tough for us,” Okoro said.

    She added that while customers are excited about the new prices, traders are counting heavy losses.

    She said: “Rice doesn’t spoil easily like other food items, but when prices crash this way, our capital just ties down. Some of us can’t even restock”.

    Okoro said that the government needed to be intentional in stabilising the price of rice in the country through regular support to local farmers to boost the supply chain.

     “The government needs to provide incentives for local farmers to increase production and improve the infrastructure for storage and distribution.

     “This will help to reduce the cost of production and make rice more affordable for consumers,” Okoro said.

    At the FESTAC Town Market, a retailer, Mrs Edith Nwaruh, said a 50kg rice Pretty Lady sold for N57,000, Mama Africa, N62,000, Mama Gold, N67,000 and Big Bull Premium N73,000.

    Nwaruh said the decline began around August, following reports of improved local harvests and increased rice supply from northern states.

    She said: “We have more rice in the market now. Local production improved, and imports also increased. When there’s too much supply, prices must drop”.

    Another trader at the Mile 12 Market, Mr Odion Michael, described the situation as a “double-edged sword.”

    He said: “Consumers are happy, but traders are weeping. We want prices to be stable, not jumping or falling suddenly. Price stability helps us to plan our business”.

    The National Bureau of Statistics (NBS) in its latest Consumer Price Index (CPI) Report indicated that headline inflation rate dropped by 210 basis points from 20.12 per cent in August 2025 to 18.02 per cent in September 2025. It was the sixth consecutive time since April 2025.

    The decline in headline inflation rate was driven by broad improvements in prices, especially with substantial drop in prices of food items. Food inflation had dropped by 500 basis points from 21.87 per cent in August 2025 to 16.87 points in September 2025.

    The decline in food inflation was attributed to decrease in the average prices of common food items like maize grains, garri, beans, millet, potatoes, onions, eggs, tomatoes and fresh pepper among others.

    Core inflation- which measures all items excluding farm produce and energy, dropped by 80 basis points to 19.53 per cent in September 2025 as against 20.33 per cent in August 2025.

    The continuing disinflation mirrored analysts’ consensus on the price outlook, with headline inflation expected to drop further in the months ahead.

    On the crash in rice prices, a rice farmer and stakeholder who pleaded anonymity, attributed the price drop to the reopening of land borders, which has allowed an increased inflow of rice from neighbouring rice-producing countries.

    He disclosed that the development had caused a flooding of the market with both imported and locally produced rice, leading to a temporary fall in prices.

    He, however, cautioned that the decline might not be sustainable, warning that prices could surge again before December due to market instability and fluctuating supply levels.

    A trader at the Oyingbo Market, Mr Ben Chidi, attributed the development to improved supply and reduced market stockpiles.

    He said that the government’s renewed support for local farmers and improved distribution channels contributed to the glut.

    This, he said, ensured that consumers, however, are relieved.

    Mrs Andriana Okoromaro, a consumer, said the drop was timely given the high cost of other food items.

     “At least, rice is affordable again. I used to buy a half bag because it was too expensive. Now, I can buy a full bag for the family. It’s a big relief,” she said.

    Another consumer, Mrs Oluwaseun Alade, said she hoped prices would remain low during the festive season.

     “Rice is essential during Christmas and New Year. This drop if sustained means more families can celebrate without worry,” she said.

    Mrs Ngozi Okolie, a consumer, said the fall is not only linked to increased supply but also to reduced purchasing power among Nigerians, which has lowered demand.

     “People don’t have much money, even with lower prices. The economy is slow, so even when goods are cheap, sales are not what they used to be,” she added

  • After temporary respite, rice price shoots up again

    After temporary respite, rice price shoots up again

    The relief that households experienced just a few weeks ago as the price of rice especially the short grains crashed to as low as N65,000-N67,000 per 50kg bag has been replaced with despair as the price of the staple food has shot up again.

    As of the time of going to Press, the price of 50kg imported short grain Indian rice which dropped from N90,000 which it was sold for in December 2024 to N65,000-N67,000 in January this year has gone up to N75,000, with traders believing it will still go up.

    While the imported long grain  50kg bag Thai rice which was sold for as high as N100,000 during the Yuletide but came down to N88,000-N89,000 three weeks ago is currently selling for as high as N92,000-N105,000 depending on the popularity of the brand.

    The locally grown rice is not immune to the steady increase in price as the price of 50kg Bull rice sells for between N84,000-N90,000 while the popular Abakaliki rice sells for N84,000 per 50kg in Ebonyi/Enugu states and sells for over N90,000 in major cities outside the Eastern part of Nigeria due to cost of transportation.

    When the cost of the commodity crashed last month, many people attributed it to the strengthening of the Naira, better conditions of trade at the land borders and a host of other reasons.

    However, investigations especially at the popular Iddo and Daleko markets in Lagos revealed that the above explanations were not the reason for the temporary crash in the cost of the staple grain.

    Research revealed that the short respite experienced by Nigerians was an annual trend. “The price of rice crashes at the beginning of every year and steadily climbs up from the middle of February every year as the Ramadan season approaches”, explained Hajia Zannab Yahaya one of the major dealers in rice at the Iddo market, Ebuttemeta Lagos

    “Everyone who follows the rice trend in Nigeria knows this. For about one month now, rice was cheap because there was little or no demand for it. Most people had bought bags of rice in December and still have rice stocked in their homes”, enthusiastically explained Hajia.

    “Many people, including traders who are aware of this trend, usually cash into this opportunity, to stockpile rice that they will eat or sell during the lean season. Now the price has started climbing up, people that bought about a month ago are now selling with good profit,” noted the rice dealer.

    Kayode Ijesha, another rice dealer and an executive member of the market association said that Ramadan and Easter celebrations were drawing close. “As usual the demand for rice will start going up and as people run low on the ones bought in December, they will start coming back for more, hence the increase in the price.”

    On speculation about the effect of land borders on rice in Nigeria, Kayode dismissed the rumours. “If the land borders open, the price of imported rice will fall to as low as N50,000 per 50kg of rice. It is the unavailability of rice that even makes the price go high. If the borders open, foreign rice will be everywhere and the locally cultivated rice will find it hard to sell”.

    Regarding the high cost of locally cultivated rice, research disclosed that Nigeria’s rice production has hit the lowest level in four years as high production costs force farmers to reduce their cultivation areas.

    Rice production declined by 7 percent in the 2024/2025 season to 5.23 million metric tons (MT) from 5.61 million MT in the 2023/2024 season, according to data from a new report by the United States Department of Agriculture (USDA). One report estimates that the decline could be between 15 and 23 per cent over the period.

    The USDA data indicates that the figure is the lowest the country has recorded since 2020 when the COVID-19 pandemic obstructed farming activities.

    Farmers say their rice revenues and profits are hard hit by the rising input prices, with insecurity, climate change and the influx of cheaper foreign varieties making it even harder for agro-based firms to stay afloat.

     “Prices on all inputs have increased four or five times already and they still keep rising,” said Muhammed Augie, former state chairman of Rice Farmer Association, Kebbi State Chapter.

    “Incentives to grow rice are no longer there. Demand from millers have declined, no more federal government intervention and the markets are flooded with cheaper imported rice products,” he explained.

    He noted that these factors have forced several rice farmers to shift to other crops with lesser production costs, noting that those still growing rice grain have reduced their production areas.

    Ahmed Idris, a rice grower in Jigawa, said he usually grows rice on five hectares of land but has reduced it to two hectares owing to his inability to afford inputs to cover his entire farmland.

    “The money I spent cultivating five hectares two or three years ago can only cultivate two hectares,” he said, noting that the government’s subsidised inputs under the Anchor Borrowers Programme for rice farmers were huge before it was suspended indefinitely.

    Read Also: Meet 21 young Nigerians and Guinness World Record holders

    Last year, the federal government suspended the Anchor Borrowers Programme – a key initiative targeted at boosting rice production. It was suspended over fraud allegations and farmers’ failure to repay loans extended to them.

    Millers are also hit by the shortfall in production and rising input costs as prices of paddy surged by 100 per cent to between N70,000 to N80,000 per 80kg bag, depending on location and quality.

    According to RIPAN, Nigeria needs 11 million metric tons of paddy to meet the current domestic consumption. It puts production at 4.6 million MT.

    The country’s rice milling industry has a processing capacity of 7.5 million metric tonnes, according to data from the association.

    The association in a 2023 snapshot report said most millers had large unutilised capacity and hence huge overheads per unit of capacity utilised owing to macroeconomic challenges.

    “A large number of millers have shut down operations owing to rising production costs,” Peter Dama, National Chairman, Rice Millers Association of Nigeria (RIMAN), said in response to questions.

    To address issues of millers, President Tinubu granted import-free waivers for importers of rice paddy, but the foreign exchange volatility has made it difficult for processors to import and mill at competitive prices.

  • ‘Duty waiver to bring down rice price’

    ‘Duty waiver to bring down rice price’

    The Federal Government’s 150-day duty-free window to allow the importation of husked brown rice as part of measures to combat rising food inflation could bring down rice prices in next two months.

    This follows efforts by rice processors to key into the grace period to import paddy as Nigerians confront rising food prices including that of rice.

    The Special Adviser to Lagos State Governor on Agriculture, Dr Oluwarotimi Fashola expressed optimism that the move will help reduce their cost of living.

    Dr Fashola noted that the window has just opened and that importers would need to source for foreign exchange (forex) to enable them import rice paddy to supply the mills.

    ”Importation will improve the supply of paddy but the impact on processing volume and pricing would not be immediate,” he said.

    He said the import process will take some time before the paddy arrived, processed and made available to local markets.

    Read Also: Tinubu appoints new leaderships for Digital Bridge Institute, NIGCOMSAT

    He explained that the process of importing paddy is extensive and involves a detailed understanding of the complex import regulations which can be time-consuming and labor-intensive. He noted that before commencing the importation process, it is essential for the importer to be well-versed in the regulations related to paddy imports, to confirm the quality and safety of the paddy, and to establish the most favorable conditions and terms for importation.

    The Chairman, All Farmers Association of Nigeria (AFAN), Lagos Chapter, Otunba Femi expects the policy to affect the price of rice in the next two months.

    He said rice prices will go down soon. “Since there is no tariff to pay, it is going to impact on the price of rice. It will lower rice prices and additional rice supply in the market will boost the availability of rice,” he said.

    Chairman & Chief Executive, Hyst Global Business Ltd, Nigeria, Mr. Biodun Onalaja, sees the policy bringing  rice prices  down in the next two months.

    Onalaja who is a rice miller said his organisation formally applied for import permit to bring in paddy.

    He expressed concerns that rising dollar exchange rate might raise the cost of imported rice paddy.

    To provide supply to enable processing, Onalaja, said his firm has invested in rice farms in the North to boost increased paddy productivity.

    According to him, rice prices may not decline considerably from the current level due to the high cost of importing of paddy using forex.

    The rice miller, however, noted, that the import duty removal  will reap rewards.

    The Chairman, Rice Farmers Association of Nigeria (RIFAN) in Kebbi, Alhaji Muhammed Sahabi- Augie said the initiative will have a brief impact on rice prices but will disrupt local production.

    He explained that members of the association were on the way to increasing total rice output nationwide.

     “Some three years ago we were producing more than 80 percent of the needed national requirement because of the interventions provided under the Anchor Borrower Programme (ABP),” he said.

    Following the suspension of the programme, he said rice farmers have been unable to raise production because of rising costs of fertiliser, pesticide, equipment, logistics, and labour.

    He urged the Federal Government to implement strategies aimed at mitigating domestic shortages, which include enhancing subsidies for paddy farmers and intensifying oversight of the rice supply chain. He emphasized that rice farmers require policies designed to reduce production costs and enhance their income. Furthermore, he stated that structural reforms in the financing of the rice industry, along with investments in technology and innovation, could significantly boost the productivity and profitability of paddy farming.

    The decline in rice paddy availability has intensified, prompting industry stakeholders to raise local rice production prices in response to escalating costs. Additionally, heightened insecurity and changing weather conditions on agricultural lands have significantly contributed to the decrease in domestic rice output. Following insecurity paddy acreage has remained stagnant. In July the Federal Government approved a 150-day duty-free window to allow the importation of maize, husked brown rice, and wheat as part of measures to combat rising food inflation across the country. The initiative was based on the implementation of the Presidential Accelerated and Stabilisation Advancement Plan.