Rice prices have experienced a notable decline in major markets across the country amidst Nigeria’s ongoing food inflation crisis. Over the course of two months, prices have dropped by 20-30%, offering a much-needed respite to households grappling with soaring food costs.
A recent survey conducted by Nairametrics analysts in key markets such as Lagos and Abuja revealed substantial decreases in the price of rice. In Lagos markets including Oshodi, Ikotun, and Ikorodu, the cost of a 50kg bag now ranges between ₦50,000 and ₦65,000, a stark contrast to previous levels. Similarly, a 25kg bag sells for approximately ₦25,000 to ₦32,500, depending on the brand.
The downward trend in rice prices has been attributed to various factors, including the appreciation of the Naira in the foreign exchange market and an increase in the number of players in the rice processing sector. Government incentives for local production have encouraged more individuals to enter the industry, leading to enhanced competition and reduced prices.
Despite the positive developments, concerns persist regarding the sustainability of these lower prices amidst Nigeria’s persistently high inflation rate, which reached 40% in March 2024 according to the latest data from the National Bureau of Statistics.
Bosun Adeyeye, a trader in Oshodi, highlighted the recent price adjustments, noting that the cost of “long rice” has fallen below ₦70,000 following a decrease in distributor pricing.
In Abuja, a similar trend has been observed, with rice prices dropping below ₦70,000 per 50kg bag in various markets across the state. This represents a significant reduction of approximately 26.14% compared to prices recorded just two months earlier.
Experts caution that unless fundamental issues such as insecurity, inadequate power supply, and regulatory challenges are addressed, the rice market could face volatility in the future. While efforts by the Central Bank of Nigeria to combat inflation through interest rate adjustments have been made, experts emphasize the need for comprehensive fiscal policies to ensure long-term stability in the rice market.
Credit: Nairametrics (Text Excluding Headline)
