The price of local rice in Nigeria has witnessed a significant increase of 73.2% within the past 12 months despite multi-billion naira funding support from the Central Bank of Nigeria (CBN).
Data from the National Bureau of Statistics (NBS) reveals that the average price of one kilogram of local rice rose from N500.80 to N867.20 between November 2022 and November 2023. The commodity, which is a staple food in Nigeria, now sells for approximately N55,000 to N60,000 per 50kg bag, varying depending on the location of purchase.
In comparison to the price of one kilogram of foreign imported rice, the NBS noted a 61.53% increase from N704.13 to N1,137 during the same period. Despite efforts to enhance local rice production, the commodity remains relatively expensive.
The report also highlights regional disparities in local rice prices, with Lagos State recording the highest cost at N1,122.42, and Kebbi State having the lowest price at N688. Despite the presence of the Lagos Rice Mill in Imota, which produces the Eko Rice brand, and the optimistic statements from Governor Babajide Sanwo-Olu, the cost of local rice in Lagos remains high.
The National President of the All Farmers Association of Nigeria, Kabir Ibrahim, attributes the high local rice prices to inflation, increased production costs, and additional expenses related to logistics, packaging, and labor. However, he disputes the figures presented by the NBS, describing them as unrealistic and not market-based.
Ibrahim emphasizes the impact of transportation costs, pointing out that the removal of the fuel subsidy has intensified the challenges associated with high transportation expenses. He notes that market prices in Lagos, Abuja, and Port-Harcourt should not be used as pricing parameters, and a more accurate reflection of market conditions should be considered.
While acknowledging the significant investments in rice production by the previous administration, Ibrahim calls for applause for the positive shift from importing trillions worth of rice to domestic production. However, he emphasizes the need for a more realistic assessment of food inflation and pricing in the market.
In a related development, a joint report titled “West Africa Regional Supply and Market Outlook,” published by the Food and Agricultural Organization (FAO) and the World Food Program, projects increased prices for staple foods like rice, maize, millet, and cereals in Nigeria and other West African countries in 2024.
