Why Are Rice Prices Dropping in Nigeria? Millers Reveal the Unexpected Reason

The Association of Rice Millers has attributed the recent decline in rice prices across Nigeria to the reopening of the Nigeria-Niger border. Jonathan Joshua, chairman at African Rice Millers in Nasarawa, made this known in a statement, indicating that the move has allowed for easier sourcing of paddy, the raw material for rice production.

Joshua, who also serves as the national president of the Association of Small-Scale Agro Producers in Nigeria, pointed out that the price of rice is expected to drop even further over the next two months, coinciding with the commencement of harvest season.

“Some mills that shut down production due to the scarcity of paddy last year and early this year are now reopening. With the border reopened, they can quickly source grain from neighboring countries,” he said. Joshua noted that the increase in paddy supply would likely drive prices lower once farmers start harvesting.

Despite rising inflation, which reached 33.20 per cent in March 2024, rice prices have seen a notable decrease. SK Blog reported a 19 per cent drop in prices, providing some relief for Nigerian consumers. The millers’ association anticipates a continued decline in rice prices as production ramps up in the coming months.