Nigerians are grappling with soaring rice prices as a 50kg bag of locally-produced parboiled rice now costs around ₦105,000, exceeding the newly implemented minimum wage of ₦70,000.
Imported rice is even pricier, reaching ₦130,000 per 50kg, according to a recent Business Day market survey.
The sharp rise in rice prices follows recent economic shifts, including the removal of the petrol subsidy and the devaluation of the naira, which have contributed to a 123% price hike over the past year.
Smallholder farmers, who play a crucial role in the nation’s food supply, are struggling to keep up with demand due to challenges such as insecurity, high input costs, and logistical hurdles.
In Lagos, some traders are holding onto their rice stock, anticipating even higher prices as the festive season draws near, when demand is expected to spike.
Bose, a rice trader at Daleko Market in Lagos, attributes the climbing cost of local rice to the high production expenses millers face.
She added that the cost of imported rice has been exacerbated by foreign exchange fluctuations, calling for urgent government intervention to mitigate the financial strain on Nigerians.
While the federal government announced in July a suspension of import duties on rice and essential items to curb food insecurity, the policy is yet to take effect, and prices continue to rise.
According to AfricanFarmer Mogaji, CEO of X-Ray Consulting, local rice production remains insufficient to meet Nigeria’s demand.
Mogaji noted that recent flooding and a grain export ban from Nigeria’s northern neighbor, Niger, have further strained the country’s rice supply.
“This export ban limits the supply of paddy for local millers, as much of it comes from neighboring countries,” Mogaji explained, adding that insecurity has led many farmers to abandon their fields.
The economic impact of these challenges is reflected in Nigeria’s second-quarter GDP data, which shows a slowdown in the agricultural sector, with growth slipping from 1.5% to 1.4% compared to the same quarter last year.
The price surge has left consumers struggling to cope. “How can I afford ₦105,000 for a bag of rice when I only earn ₦100,000?” asked Chioma Okeke, a teacher in Lagos.
“Prices keep going up, and the subsidy removal has only made things worse,” she added, echoing the frustrations of many Nigerians facing the brunt of the economic downturn.
