Nigerians are feeling the pinch as the cost of rice continues to surge, with a 50kg bag of locally produced parboiled rice now priced at around ₦105,000, far exceeding the new minimum wage of ₦70,000.
Imported rice is even more costly, with a 50kg bag reaching as high as ₦130,000, according to a recent BusinessDay market survey.
This 123% increase in rice prices over the past year follows the federal government’s removal of the petrol subsidy and devaluation of the naira, factors that have significantly impacted both production and import costs.
The rise in rice prices underscores the challenges facing Nigeria's smallholder farmers, who struggle to meet local demand due to issues such as insecurity, soaring input costs, and logistical hurdles.
“The cost of local rice keeps climbing because millers are burdened by high production costs,” explained Bose, a trader at Daleko Market in Lagos.
She also noted that foreign exchange fluctuations have driven up the cost of imported rice, calling for government intervention to ease the burden on consumers.
While the federal government announced a suspension of import duties on rice and other essentials in July as part of efforts to curb food insecurity, the policy has yet to be fully implemented.
In Lagos, traders are holding back rice stocks in anticipation of higher prices during the upcoming festive season, when demand typically rises.
In addition to economic pressures, flooding and an export ban by Nigeria’s northern neighbor, Niger, have further hampered rice production.
AfricanFarmer Mogaji, CEO of X-Ray Consulting, highlighted that the export ban limits paddy supply for local millers, as much of it comes from neighboring countries.
“Insecurity and kidnappings are also a concern, as they prevent farmers from accessing their lands,” Mogaji added.
This trend aligns with recent economic data, which shows a slowdown in Nigeria’s agricultural sector, with second-quarter GDP growth declining from 1.5% last year to 1.4%.
For many consumers, the escalating prices are unsustainable. “How can I afford ₦105,000 for a bag of rice when I only earn ₦100,000?
There’s barely anything left for my family’s needs,” lamented Chioma Okeke, a teacher in Lagos.
Like many Nigerians, Okeke feels the double impact of rising food costs and the subsidy removal, which have left many households struggling to make ends meet.