The cost of a 50kg bag of rice in Nigeria has once again climbed to alarming levels, reportedly hitting ₦100,000, just a few months after experiencing a slight drop to around ₦65,000. This development has triggered fresh concern among Nigerians already grappling with high living costs.
According to a recent market survey conducted by Vanguard at major markets in Lagos, it was discovered that short-grain rice is now selling between ₦85,000 and ₦90,000, while the more sought-after long grain variety has reached ₦100,000 per bag.
This sharp increase has been attributed to the expiration of the 150-day duty-free import window which was introduced under the Presidential Accelerated Stabilisation and Advancement Plan. The initiative was intended to reduce food prices, but traders say the opposite is now unfolding.
“Honestly, I can’t understand Nigeria’s system again. We are frustrated. We are not in business,” lamented Mrs. Bolatito Yunisa, a rice seller at the Daleko Market in Lagos.
She further explained, “A bag of short grain that went as low as ₦65k has now hit ₦85k. Long grain is selling between ₦90k and ₦100k—and it’s still going up. Where is Nigerian rice? Millers say there’s no paddy, and many are shutting down because of forex issues. Do we go hungry?”
Similar complaints echoed across markets like Mile 12 and Oke-Arin, where sellers are now forced to sell rice in smaller quantities due to declining consumer purchasing power.
“It’s not funny at all,” said Bukola Osagie, another trader at Mile 12 Market. “Even as a dealer, I now sell in Derica cups. People can’t afford full bags anymore, and we have to split it up just to make sales.”
Despite the Federal Government's intentions, local producers claim they were excluded from the benefits of the import waiver. Peter Dama, President of the Rice Millers Association of Nigeria (RIMAN), criticized the implementation of the policy.
“None of our members were granted waivers or quotas. But we heard of one big rice mill whose chairman publicly thanked the president for receiving one. We also heard, unofficially, that two other firms got them too,” Dama said.
He added, “One company reportedly brought in 200,000 tonnes of brown rice worth $84 million under this waiver. Meanwhile, our applications got no response from the government.”
Dama expressed further concern, stating, “Between July and December 2024, Nigeria spent ₦1.9 trillion ($1.17 billion) importing 2.4 million tonnes of rice. And still, rice is selling for ₦100k. What’s the point?”
While imported rice continues to flood the markets, smuggled rice from the Benin Republic reportedly sells between ₦70,000 and ₦78,000, undercutting local producers and retailers.
Dama estimates that over 1 million tonnes of rice have been smuggled into Nigeria since January 2025. “Smuggling is illegal, but it’s thriving. Weak borders, high local prices, and lack of enforcement are fueling it. Local millers are shutting down. Farmers have unsold paddy. We’re in trouble.”
He warned that unless urgent measures are taken, the country could lose all progress made in local rice production over the years. “Nigeria has enough rice mills to feed the country,” he said, “but with bad policies and inconsistent waivers, the entire industry is under threat.”
“Electricity is unstable, we rely on expensive generators, fertiliser prices are up, labour is costly—and now, we can’t compete with cheap imports. We can feed the nation, but not in these conditions,” Dama concluded.
Jerry Olanrewaju, a youth leader and advocate in the agricultural sector, voiced similar concerns. He described the waiver process as lacking transparency and harmful to smallholder farmers.
“There is no public record of who got waivers. The system favors politically connected importers. Meanwhile, smallholder farmers—who produce 70% of our rice—are left behind,” he said.
“Imported rice gets tax cuts. Local rice does not. It’s unfair. It’s policy confusion.”
Olanrewaju also criticized the government’s misallocation of funds. “Every naira waived could’ve gone into irrigation, improved seeds, or mechanization. But instead, it went into helping a few companies bring in cheaper rice to undercut our farmers.”
Despite these challenges, the Ministries of Agriculture and Finance have remained silent. Stakeholders say no emergency policies or price stabilization measures have been announced to support rice farmers.
“So far, there’s no comprehensive statement or emergency policy to stabilize rice farming,” Olanrewaju added. “No price guarantees, no buffer stock purchases, no support for struggling farmers.”
“The Ministry of Agriculture must speak out, engage stakeholders, and coordinate with Customs, the Finance Ministry, and the CBN. Right now, it’s as if they don’t care.”
Meanwhile, the Food and Agriculture Organisation (FAO) has warned that over 30 million Nigerians are at risk of facing acute hunger during the 2025 lean season (June to August).
Industry players fear that without a clear and consistent agricultural policy, the rice crisis will only deepen, affecting food security nationwide.
“Smuggled rice is cheaper not because local rice is bad—but because Nigeria’s farmers get no support,” Olanrewaju concluded. “Other countries subsidize their rice, we don’t.”
“If we don’t act now, all our progress in rice farming will collapse.”
As one market woman bitterly asked,
“Is this how we will continue to live as a country?”