Dollar Rise is to Blame for the High Cost of Rice, President of Nigerian Rice Farmers, Aminu Goronyo says
- Nigerians are buying rice 300% higher than it cost five years ago as the price rose to about N30,000 this year, against the N7,500 of 2015
- The President of Nigerian Rice Farmers Association, Aminu Goronyo, said the strong dollar has affected cost of farming in the country
- Goronyo said most of the farm components are bought with dollars, and the farmers have to recover their profits
The President of Nigerian Rice Farmers Association, Aminu Goronyo, has blamed the rise in dollar and weakened naira for the high cost of locally produced rice
Goronyo said as the dollar rate rises over the years, farmers have had to spend more on fertilizers, and as the cost of production increases, the cost of rice is expected to go up as well.
In 2015, a bag of rice was about N7,500, but five years later, the cost of the grain has risen to about N30,000 in 2021 - rising by 300% within the period.
Source: Getty Images
This means rice consumers now spend N22,500 extra when compared to the cost of buying it five years ago.
Goronyo defends the price increase with dollar rate
He said in 2015, one dollar was exchanged for about N150, however, Nigeria's currency has further depreciated in 2021, selling for over N500 to $1.
"I hope you know how much was the exchange rate of dollar to naira in 2015, and I hope you know the exchange rate today? The exchange rate in 2015 was about N150 per dollar.
"And today, the exchange rate is about N500 per dollar. And I want you to know that most of the input we use to cultivate our farms is being imported.
"For example, the herbicide that we use to farm our farms is being imported. The water pump, intact even the fertilizer component are all being imported.
"And you have to exchange your naira to dollar to buy this components, so that our farmers will have the input to enable them to cultivate their farms.
"And you have to sell it (inputs) at the price you exchanged your naira to dollar to procure those inputs for you to also have profit on top of what you are bringing into the country."
CBN handing Nigerians their local crypto
By the end of October, Nigerians interested in a government-owned cryptocurrency will have their hands on it as the Central Bank of Nigeria is prepared to produce it.
Godwin Emefiele has been critical of cryptocurrency usage in Nigeria, stating that no credible investors want to have anything to do with it.
But the government and the financial regulator intends to go round the unregulated crypto to make Nigerians invest in a regulated digital coin.
Source: Legit.ng
