Nigerian rice prices have skyrocketed to an average of N54,000 for a 50kg bag due to several causes. The reported distribution of lethal rice in certain border villages and accusations of overabundance from India are among the contributing factors.
In Lagos and Ogun States, market surveys showed that the price of rice dropped from about N58,000 in April to as low as N50,000 in some places along the borders of Seme and Idiroko.
A report by S&P Global indicates that parboiled rice prices in the region have plummeted to record lows, driven by subdued demand and heavy imports from India.
Data from the Agricultural and Processed Food Products Export Development Authority (APEDA) shows that India exported nearly 4.9 million metric tonnes of rice to the region between April 2024 and January 2025, with Benin, Guinea, and Ivory Coast as the top importers.
As a result, both imported and local rice prices have dipped significantly over the past two weeks.
According to market watchers, local rice sells for around N62,000 per bag, a N10,000 drop from April levels.
Nigeria is confronting a potential rice supply gap estimated at 2.18 million tonnes, which would translate to a value of about N1.43 trillion, driven by a decline in local production.
Forecasts for the 2024/2025 agricultural season suggest that milled rice output will fall from 5.60 million tonnes to approximately 5.22 million tonnes.
Meanwhile, rice consumption is rising, with the National Bureau of Statistics (NBS) projecting demand to reach 7.4 million metric tonnes by 2025.
Paddy rice prices are forecasted to increase from N1.10 million to N1.30 million per metric tonne by the third quarter of 2025, reflecting the sector’s production challenges.
Meanwhile, the Federal Ministry of Agriculture and Food Security, in partnership with HarvestPlus, has launched two new biofortified rice varieties, Faro 71 and Faro 7.
The federal government said the two rice varieties are designed to combat zinc deficiency and related malnutrition.
The varieties are the first zinc-enriched rice types released in Nigeria and across Africa. They aim to boost dietary intake and reduce anaemia, which affects an estimated 68% of children under five in Nigeria.
The National Bureau of Statistics (NBS) has disclosed that the annual food inflation rate in April 2025 was 21.26%. The food inflation rate in April was 19.27% points lower than the rate of 40.53% in April 2024.
In its April 2025 consumer pricing report, which was made public on its website, the NBS revealed this and added that the change in the base year is mostly to blame for the notable drop in the monthly annual food inflation number.
Source: Legit news
Image source: FreePix
