Rice Sellers Announce Changes as Data Shows New Price in 2 Months

• Rice sellers across Nigeria have reported a 20% drop in the price of the commodity since March and April 2024
• The price of rice decreased from N90,000 per 50kg to N72,000 in March, providing relief to Nigerian households
• The development comes as food prices soared in March following heightened inflation in Nigeria

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The price of parboiled rice dropped for the first time this year in April, which relieved families and reduced living standards across the country.

A market survey across Lagos and significant cities shows that in four months, the price of a 50kg bag of rice has decreased by 20%, from an average of N90,000 to N72,000.

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The Naira gain leads to a drop in prices

Experts have attributed the staple's price drop to the rise in the value of the naira against the US dollar.

Also, 50kg of locally parboiled rice was reduced by 11.7% from an average of N77,000 to N68,000 in the same period, attributed to the reopening of the Nigeria-Niger land border.

According to reports, the Nigerian currency, which lost about 43% of its value earlier this year, rebounded, gaining 34% from mid-March to April, making it the best-performing currency in the world for April.

Food prices soar in Nigeria

The latest report on the Selected Food Price Watch for March 2024 by the National Bureau of Statistics (NBS) shows that the average price of one kilogram of local rice stood at N1,350.74 in March 2024.

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The development indicates an increase of 152% yearly from the N530.08 recorded in March 2023.

Every month, the rise was about 9.63% compared to N1,222.97 it sold in February 2024.

The NBS report also shows that the average price of 1kg of beef boneless rose by 73.78% yearly from N2,479.61 in March 2023 to N4,309.16 in March 2024.

Monthly, the average price of this item rose by 17.91% from N3,654.56 in February 2024.

The price of other food items, such as beans, increased by 106.78% yearly, from N596.96 in March 2023 to N1,234 in March 2024.

Monthly, it rose by 4.79% from N1,177.93 in March 2024.

Also, the average price of 1kg of Garri white rose by 112.34% from N353.16 in March 2023 to N749.89 in March 2024, an increase of 3.66% monthly.

Additionally, the average price of 1kg of yam tuber increased by 141.25% yearly from N443.02 in March 2023 to N1,068.78 in March 2024.

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It rose by 5.87% monthly from N1,009.56 in February 2024 to N1,064 in March 2024.

Nigeria hit by high food inflation

Per the NBS report, it costs an average of N938 to prepare a single healthy meal diet for an adult per day in Nigeria, stretching household survival.

Nigeria has been hit with high food inflation since March 2024, reaching 40.01%.

Legit.ng reported in February 2024 that the commodity's price hit almost N100,000 per 50kg bag due to the naira crash.

The National Bureau of Statistics said in December 2023 that Nigeria’s inflation rate hit a 27-year-high of 28.9%.

Analysts say the arrowhead of the recent inflation figures is food inflation, which has eroded household incomes in recent months. 

The volatile exchange rate system exacerbates the situation, which makes food imports challenging.

Dealers crash rice prices

Legit.ng previously reported that following the rallying of the Nigerian currency, the naira, against the US dollar, the price of a 50kg bag of rice has crashed to an average of N67,000 in Lagos, Abuja, Ogun, and other states, from the N90,000 it sold in February this year.

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Findings show that in border communities across the country, the price of the staple sold at a much lower rate compared to other places.

Seven-year data from the Nigeria Bureau of Statistics (NBS) show that the average price of 1kg of rice increased from N172.74 in 2016 to N520.84 as of 2023.

Source: Legit.ng