Rice Prices Drop by 19% in Abuja Amidst Inflation Surge

In the midst of escalating inflation, the price of rice in Abuja has taken an unexpected dip, plummeting by 19% from N84,000 to N68,000 for a 50-kilogram bag of locally parboiled rice.

A recent survey conducted at the Dutse and Kubwa markets revealed a marginal decrease in the prices of popular rice brands like Big Bull and Optimum, contrasting the prevailing trend of rising food inflation.

Despite the drop in local rice prices, foreign varieties such as Mama Gold and Royal Stallion remain steeply priced at N90,000 per 50kg bag.

Market traders, including Amaka Ubani from the Dutse market, noted the decrease in rice prices, attributing it to a range between N68,000 to N72,000, down from the previous N72,000 to N84,000 range observed in March.

While foreign rice options are scarce due to their high cost and prevalence of re-bagging, local brands like Big Bull are now being sold at N68,000 per bag at Betty Retail shop in Kubwa market, and similar prices are observed in other shops.

The drop in rice prices contrasts with the broader trend of food inflation, which surged to 40.01% in March, prompting concerns among Nigerians about the disconnect between the strengthening Naira in the foreign exchange market and its impact on commodity prices.

Dr. Ayo Teriba, the Chief Executive of Economic Associates, offered insight into the delayed impact of Naira appreciation, suggesting that its effects may manifest within three to six months.