Nigeria, the largest rice producer in Africa, is facing a looming rice price crisis as the scarcity of paddy, the primary raw material for rice production, forces rice mills across the country to shut down. The consequence? A significant surge in the price of rice, already the most common staple food in Nigeria.
In recent months, the cost of a 50kg bag of rice has seen a dramatic increase, rising from the range of ₦30,000 to ₦35,000 between December 2022 and February 2023 to now fetching ₦40,000 to ₦45,000 depending on the brand. However, experts predict that this may just be the tip of the iceberg, with prices potentially soaring to ₦50,000 or more in the coming weeks.
The closure of rice mills in major rice-producing states such as Kano, Kebbi, Kaduna, Adamawa, and others is a direct consequence of the scarcity of paddy. Millers are now grappling with sourcing paddy at exorbitant prices, exacerbating the crisis.
Dalhatu Abubakar, Chairman of the Northern Chamber of Commerce, Industry, Mines, and Agriculture, confirmed the dire situation, stating that integrated rice millers in Kano are now paying as much as ₦400,000 per tonne of paddy, up from ₦330,000 in June 2023. This surge in paddy prices is pushing many millers to cut production hours and lay off workers.
Abubakar also warned of the ripple effects on consumers, foreseeing an increase in smuggling of foreign rice brands. “The only hard way now is the cost of finished rice, which Nigerians will soon face,” he remarked.
Kaduna State, too, is feeling the brunt of the paddy shortage. Many millers in the region are at risk of shutting down due to the dwindling paddy supplies. To secure grains for milling, millers are resorting to outbidding one another, a precarious situation for an industry already on the brink.
Abdul-Rahman Ali Musa, the Kaduna State Coordinator of the Seed Poverty Eradication Multi-Purpose Co-operative Society, attributed the paddy shortage to various factors, including the closure of the Niger Republic border, flooding, insecurity, and the high cost of inputs.
While some attribute the shortage to the lean period before the upcoming harvest, others argue that hoarding and greed are playing a significant role. Alhaji Ahmed Santuraki, a farmer in Adamawa State, believes that some individuals are artificially inflating prices for their profit.
As prices continue to climb and the paddy shortage persists, calls for government intervention to support farmers with inputs and mechanization for year-round farming are growing louder. The situation poses a severe threat to Nigeria’s food security, leaving many Nigerians anxious about their ability to afford this essential staple.
