50kg Rice Price Drops to N58,000 in Nigeria - Report

 50kg Rice Price Drops to N58,000 in Nigeria - Report

The price of a 50kg bag of rice has dropped sharply to as low as ₦58,000 in parts of Nigeria, according to a new market report released this week.

*Major Price Decline Across Markets*

The report, compiled by S&P Global and corroborated by market surveys, reveals that rice prices have fallen from highs of ₦80,000 to ₦90,000 per bag to around ₦58,000, especially in remote regions and border communities. In some areas near the Benin Republic, prices have dipped even further, dropping below ₦50,000 per bag.

*Why Are Prices Falling?*

This dramatic decline is attributed to a flood of imported rice entering West Africa, following India’s recent removal of export duties on parboiled rice. As a result, Indian rice exports to West Africa surged to 2.11 million metric tonnes between September and December 2024, nearly triple the amount from the same period in 2023. For the whole of 2024, India exported 5.35 million metric tonnes of parboiled rice to the region, up from 3.9 million metric tonnes the previous year.

Warehouses in the Benin Republic, which neighbors Nigeria, are reportedly filled to capacity with the influx of Indian rice. Much of this rice is making its way into Nigerian markets, both legally and illegally, despite Nigeria’s official ban on rice imports.

*Impact on Local Rice and Border Communities*

The price drop is not limited to imported rice. Locally produced rice, which previously sold for ₦80,000–₦90,000 per 50kg bag, is now available for about ₦60,000. In border towns, particularly in Ogun State, the proximity to Benin has led to even lower prices, with rice sometimes selling below ₦50,000 per bag.

*Demand Remains Muted*

Despite the price crash, traders report that demand for rice has not increased significantly. Many buyers are adopting a wait-and-see approach, hoping prices will stabilize further before making large purchases. Market analysts suggest that a significant uptick in demand may not occur until the festive season later in the year.

*Authorities Struggle With Smuggling*

The Nigerian Customs Service continues to face challenges in curbing the illegal flow of rice across the country’s borders. Rice remains the most smuggled commodity into Nigeria, complicating efforts to support local production and stabilize the market.

As rice prices hit a near two-year low, Nigerians are watching closely to see whether the downward trend will persist and if demand will rebound in the coming months. 

For now, the drop offers some relief to consumers but also underscores the complexities of West Africa’s rice trade and the ongoing struggle to balance local production with import pressures.

Reporter *Caleb James*