Soaring Price Of Rice: Nigerians Groan

Soaring Price Of Rice: Nigerians groan as price of rice soars again

Amidst ongoing hardship caused by economic downturn, and anti-progressive policies implemented by the present government, Nigerians continue to groan.

The price of a bag of rice, which crashed a few months ago, is now soaring again, catalysing more hardship for the citizens.

According to today’s reports in the media, various markets in Lagos now sell some brands of rice as much as N100,000 per bag, almost doubling the price which it was being sold for before.

Rice retailers are blaming the exorbitant price of the commodity on assumed end of the 150-day duty-free import window for essential food items as part of the Presidential Accelerated Stabilisation and Advancement Plan.

However, the farmers are accusing the presidency of secrecy. Noting that the presidential initiative announced in July, 2024, only benefits a few firms.

“From what we know so far, (only) three big firms, including one in Lagos and another in Kaduna, are said to be beneficiaries of the waivers”, the Chairman, Board of Trustees, BoT, Competitive African Rice Forum, Nigerian Chapter, CARF-FSD Nigeria, CARF-FSD Nigeria, Peter Dama said.

Soaring Price Of Rice: Nigerians Groan

Peter Dama, who also happens to be the President of Rice Millers Association of Nigeria (RIMAN), described ad-hoc policies such as waivers to reduce prices as detrimental to local rice millers, processors, farmers and marketers, stating that it could have been better if the federal government considered long-term measure to ensure good security in the country.

Precarious Situation

Rice dealers in Lagos expressed their concerns over the increase in the price of rice, disclosed that they were frustrated about the latest development.

In the statement of Mrs. Bolatito Yunisa, a rice retailer at Daleko Market in Lagos, groaned: “Honestly I can’t understand Nigeria system again. We are frustrated. We are not in business.

“A bag of short grain rice we saw going down to as low as 65k has gone as high as 85k, the long grain sells between 90k and as high as 100k and it’s still going up.

“We learnt that the temporary relief has ended. Really, is this how we will continue to live as a country?

“Where is the Nigeria rice? Millers are complaining of not seeing enough paddy. Many millers are no longer producing because of FX issues. Do we go hungry? I think there is confusion somewhere”.

On her part, Mrs Bukola Osagie, another rice dealer at Mile 12 International Market Lagos, said: “It’s not funny at all. I don’t even know how families are surviving. Price keeps flying up.

“Even as a dealer, we now sell in Derica measurement because many people cannot afford to buy bag of rice anymore. We share for them so that we can also make sales”.

Visiting Mile 12 International Market where a bag of 50kg short-grain rice goes for between N77,000 and N85,000 depending on the quality, against the old price of between N60,000 and N65,000.

Soaring Price Of Rice: Nigerians Groan

On the other hand, long-grain type at the same market is sold for between N85,000 and N90,000. The price of local rice has also increased.

Dama, speaking on those who are benefitting from the waivers, said: “What we know is that the rice value chain actors, who laboured to build the rice processing industry, were the ones who proposed solutions to the government about the rising costs of rice through memos and advice.

“The solutions included import quotas and waivers to deter hoarding and make up the shortfall in primary production without hurting rice millers, processors, farmers or the agriculture value chain.

“Again, some rice value chain actors amongst us, who had strong networks in India, even got to the Indian government to drop its 20 per cent export duty on rice, so that Nigerians can benefit from lower prices.

“However, as we speak, none of the companies within our members were granted waiver licenses or quotas for brown rice imports.

“For those who got the waivers, we are sure of one big rice mill because the Chairman stated it during his recent visit to the president and he announced it at the Presidential Villa. “We have also heard unconfirmed reports of two other firms also being part of those who received the waivers.

Details

“We are not privy to the details.

“One of the firms, however, mentioned 200,000 tonnes of brown rice with a value of about $84 million. “The waivers are presidential waivers.

“There is supposed to be a process for issuance of these waivers, starting from the Ministry of Agriculture, Trade and investment and ending up in the Ministry of Finance.

“Our members applied, but have not received any response from government to their applications”.

Dama, noted that this implication should serve as a notice to consider long-term government policies and ensure more sustainable way-out whenever possible.

Soaring Price Of Rice: Nigerians Groan

“Findings revealed that brown rice, under temporary waivers on import duties for essential food imports gulped a total of N1.9 trillion ($1.17billion) from Nigeria in the second half of 2024”, he said.

“2.4 million tonnes of brown rice were shipped to the country by Nigerian firms between July and December last year.

“Also, 10,000 tonnes of another rice ferried by African Swift in the first week of July 2025 are being offloaded at Lagos Port, after 32,000-tonnes shipment of brown rice from Thailand was facilitated in January 2025 by a logistics company, DUCAT, as importation of brown rice was permitted to help address rising food cost.

“Despite the imports, consumers in the country were still paying between N70,000 and N78,000 per 50 kg on smuggled parboiled rice from Benin Republic due to local production deficit.
“What is the end result? We are back to where we left and even worse.

“Nigeria has more than enough rice mills to feed the nation but the policy inconsistencies and selective import duty waivers has threatened the viability of Nigeria’s rice industry which has led to underutilization of productive capacity.

“Also, the high cost of FX for imports and high costs of shipment, inputs and other goods and services still persist.
“Local rice millers are struggling to compete with cheaper, subsidized imports.

“This has led to the collapse in demand for paddy rice, leaving farmers with unsold harvests and forcing many rice mills to shut down or scale back on operations.

“The major issue of insecurity following constant kidnapping of farmers still persists and high cost of farm inputs and services is also an issue because it equally affected the production output of our paddy which is the sole raw material for the production of rice.

“Electricity is not stable, we use generators in order to mill rice for at least eight hours, cost of fertilisers is high and even to cost of labourers. “You don’t expect rice millers to mill his rice without making profit.

Soaring Price Of Rice: Nigerians Groan

“Yes, we can feed the nation but with the situation of things, Nigerians can’t get it cheaper unless a drastic measure is taken to address food insecurity that is biting hard on both the rich and the poor”.

“Although the intention behind this policy may have been commendable, aimed at alleviating the impacts of inflation and hunger affecting the nation, it has unintentionally sparked a new crisis that jeopardizes the very foundation of Nigeria’s food security.

“Where were you when the Chairman of one of the beneficiaries went into the Villa to thank the president about the tons of rice he brought into the country that later led to the crash of the price of rice in the country?”

On Rice That Are Smuggled-in

He (Dama) also stated the consequences of rice being smuggled into the country, saying that it has started having bad effects the local production of the staple food.

“Smuggling is inherently illegal and shrouded in secrecy too. Thus there is no way to get a definite figure”, he said.

“Estimates, however, indicate that over 1,000,000 metric tonnes of finished rice has been smuggled from January to date into the country.

“The information we have is that the Ministry of Agriculture has submitted their vetted list to the Ministry of Finance containing who they believed to be genuine rice millers and rice processors in the country.

“But there is as yet no action taken by the Finance Ministry on the list submitted.

“There is complete silence from both ministries about the threat to the Nigerian rice milling industry, rice farmers, Nigerian agriculture ecosystem, food security and need for self-sufficiency in the rice sector. “There is no indication that the government is aware of the repercussions of its actions.

“And this is coming a few years after COVID-19 epidemic when Nigerian farmers fed this country and prevented starvation.

Soaring Price Of Rice: Nigerians Groan

“We may have collapse of the achievements recorded in the rice value chain in Nigeria: Job losses; private and public investments are lost.

“Some of our members collected loans to invest in these ventures following appeal by government that we must eat what we produce.”