The cost of a 50kg bag of local parboiled rice in Nigeria has surged to an average of ₦105,000, surpassing the country’s newly set minimum wage of ₦70,000, according to a recent BusinessDay survey.
This price increase, fueled by the removal of petrol subsidies and the naira’s devaluation, marks a 123 percent rise year-on-year for a staple food in Nigerian households. Meanwhile, a 50kg bag of imported parboiled rice now costs around ₦130,000.
Local rice producers face challenges in meeting demand due to issues such as insecurity, high input costs, and logistical barriers, leading to a supply shortage that drives up prices. Traders in Lagos are also reportedly holding back supplies in anticipation of even higher prices during the festive season when demand typically spikes.
“The price of local rice keeps climbing as millers contend with high production costs,” explained Bose, a trader at Daleko Market in Mushin, Lagos. The instability in foreign exchange rates has likewise driven up the cost of imported rice, she added, urging government intervention to assist low-income Nigerians.
Despite the federal government’s July announcement of import duty suspensions on essential food items to address food insecurity, this policy has yet to be enacted. Insecurity, especially kidnappings, continues to threaten Nigeria’s agricultural sector, while flooding has exacerbated production challenges. Compounding the issue, the Niger government recently banned grain exports to Nigeria, limiting the availability of paddy rice for milling.
AfricanFarmer Mogaji, CEO of X-Ray Consulting, emphasized that until insecurity and production issues are addressed, the supply gap will persist. This trend is reflected in Nigeria’s second-quarter GDP, where growth in the agricultural sector slowed to 1.4 percent, down from 1.5 percent in 2023.
As food prices climb, Nigerians like Chioma Okeke, a teacher in Lagos, face hard choices. “How do I afford a ₦105,000 bag of rice on a ₦100,000 salary? I still have to feed my children,” she lamented, underscoring the mounting pressures on Nigerian households in an era of high inflation and slow wage growth.
