From Subsidy To Soaring Prices: Rice Now A Luxury At ₦130,000 For 50kg

From Subsidy To Soaring Prices: Rice Now A Luxury At ₦130,000 For 50kg

Nigerians are facing sharp increases in rice prices following the removal of the petrol subsidy and a weakening naira. A 50kg bag of locally produced parboiled rice now costs approximately ₦105,000, surpassing the new minimum wage of ₦70,000.……CONTINUE READING 

Imported rice is even more expensive, with a 50kg bag priced at around ₦130,000, according to a BusinessDay survey.

This price surge underscores the limited production capacity of smallholder farmers, who struggle with challenges such as insecurity, high input costs, and logistical issues. In Lagos, some traders are withholding stock, anticipating further price hikes as the festive season approaches.

A Lagos trader named Bose highlighted that millers face high production costs, while the exchange rate affects imported rice prices. Bose called on the government to step in to ease the burden on consumers.

Despite the federal government’s recent suspension of import duties on rice and other essential items, the policy has yet to be implemented, and food prices continue to climb. AfricanFarmer Mogaji, CEO of X-Ray Consulting, noted that factors like recent flooding and Niger’s grain export ban have further restricted rice supply, affecting food security in Nigeria.

Consumers are feeling the impact. For example, Chioma Okeke, a Lagos teacher, expressed frustration, saying, “How can I afford ₦105,000 for rice when I earn only ₦100,000? Prices keep going up, and subsidy removal has made it harder.”

This economic strain coincides with a downturn in Nigeria’s agricultural GDP growth, which slowed to 1.4% in the second quarter, down from 1.5% last year.