Naira Rebound: Rice Prices Drop to N67,000 in Major Cities, Cheaper at Borders

The price of rice in Nigeria has seen a notable decrease following the recent rebound of the naira against the dollar. In major cities like Lagos and Abuja, a 50-kilogram bag of rice now sells for an average of N67,000, down from N90,000 in February 2024. However, in border communities such as Imeko, Idiroko, and Oja-Odan, the price is considerably lower, with some places offering rice for as little as N42,000.

The significant drop in rice prices is attributed to the improved value of the naira, as well as a decrease in transportation costs due to a fall in diesel prices. Traders in markets across the country confirm the downward trend in rice prices. At the Agege and Oshodi markets in Lagos, rice prices have dropped to between N65,000 and N63,000, compared to the December 2023 and January 2024 prices of N75,000 to N80,000.

In Ogun State, prices vary based on proximity to the border with the Republic of Benin. Traders in border communities report significantly lower prices, with rice selling for as little as N49,000. Meanwhile, in the Federal Capital Territory (FCT), Abuja, prices have also seen a reduction. At the Wuse Market, the cost of a 50kg bag of rice dropped from N70,000 to N65,000, with other brands experiencing similar decreases.

Despite the overall downward trend, there are still regional price discrepancies. While the cost of rice has fallen in some areas, other cities, such as Asaba and Onitsha, still report high prices, with bags of rice selling for N83,000 to N95,000. This disparity highlights the complex dynamics in the rice market and the varying factors that influence pricing across Nigeria.

The Federal Government’s past policies, such as banning rice imports through land borders in 2015 and limiting importers’ access to foreign exchange, contributed to high prices. However, the recent rebound in the naira has alleviated some of the pressure on rice prices, bringing relief to consumers.

As the rice market continues to fluctuate, experts emphasize the need for sustained stability to ensure long-term affordability for Nigerian households. While the recent price adjustments are encouraging, the impact of fluctuating exchange rates, transportation costs, and government policies will continue to shape the rice market’s future.