Following a significant recovery of the naira against the US dollar, the cost of a 50-kilogram bag of rice has seen a notable decrease, dropping to an average of N67,000 in major cities such as Lagos and Abuja, down from N90,000 in February 2024. This price decline is even more pronounced in border communities, where lower prices have been reported due to closer access to imports.
In border areas like Imeko and Idiroko in Ogun State, rice is currently being sold for around N49,000 per bag or less. Similarly, in Saki, a border town in Oyo State, the price has dropped to N42,000, according to local reports.
The disparity in prices between local and foreign parboiled rice has widened, with imported varieties seeing greater reductions. This shift comes after several policy changes over the years aimed at boosting local rice production. Notably, the Central Bank of Nigeria had banned rice importers from accessing foreign exchange through official channels in 2015, a restriction that was only lifted in late 2023.
Despite these efforts, the price of rice had continued to escalate until recently, burdening consumers with high costs. The National Bureau of Statistics' report indicated that the average price of 1kg of local rice climbed significantly in the past years, exacerbated by economic pressures like the removal of petrol subsidies and the floating of the naira.
Market visits in various cities confirm the downward trend in rice prices. In markets within Lagos, for example, traders reported a range of N65,000 to N63,000 for a 50kg bag, a decrease from previous months. According to one trader in Oshodi, the cost of purchasing rice dictates the selling price, which has recently allowed for lower retail prices.
The prices near the borders are generally cheaper. For instance, a trader in Ilara purchased a bag for N47,000, a stark contrast to the N70,000 price tag during the earlier months of the year. Another trader in Ikenne noted a drop to N65,000 from a high of N88,000 between February and March.
Despite the relief in rice prices, the costs of other staples like beans and garri have continued to rise, highlighting ongoing challenges in the food sector. The decrease in rice prices is partially attributed to improved naira strength against the CFA franc, facilitating cheaper imports from neighboring Benin.
Transportation costs, influenced by diesel prices, also play a role in the fluctuating rice prices. A food seller in Lagos mentioned that reduced transport costs have helped lower rice prices, particularly for imported brands.
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