Nigerians Groan As Rice Prices Skyrocket
. Supply Gap Hits 2 Million Tonnes, As Local Production Declines
With steady rice in consumption of rice in Nigeria outgrowing local supply, the price of the grain has skyrocketed in the market leaving consumers to drain their purses to put food on their tables.
According to the AFEX Wet Season Crop Production Report for 2023, the commodity has witnessed over 37 per cent increase in 2023.
The report also revealed a supply gap of about 2 million metric tonnes yearly.
SlyeNews survey revealed that a 50kg bad of rice now costs between N50,000 and N57,000 in Nigerian markets depending on the location.
Some rice dealers in Nigeria say the price of the commodity fluctuates on a daily basis and is heavily impacting their business.
“I don’t have much rice because of the increase in price,” says one rice dealer. “Sometimes I do get customers from various hotels but now I have lost most of my customers because of the increase.”
Another dealer agrees, saying that the difference between now and this time last year is noticeable.
“Now there are no buyers, that is the problem we are having, customers are not coming like before,” AfricanNews quoted Abdul Idris as saying, “This time last year, the bag was N28, 000 but this year, it is N50,000 and people are complaining of the price.”
Some customers say they are now buying smaller quantities of rice due to the price hike.
A customer, Vera Abua, said: “It is really affecting me – and not just me. Most Nigerians are complaining of the increase in the price of rice and now we don’t buy like we used to before.”
According to AFEX’s report: “Rice consumption in Nigeria has been steadily increasing, aligning with the consistent growth of the rice market, nearly matching the annual population growth projection of 2.6 per cent at two per cent.”
Nigeria is regarded as the largest producer of rice in West Africa, yet still needs to import the commodity.
Globally, rice prices reached their highest point in nearly twelve years in 2023, primarily due to India’s ban on rice exports and the potential impact of El Nino on production in key regions.
These factors, along with rain-induced disruptions and variations in quality during Vietnam’s summer-autumn harvest have further contributed to the price surge.
However, Nigeria has spent over $15 billion in the past decade to meet its expanding rice consumption, despite its potential to be a net rice exporter, according to AFEX report.
