The Big Scam: How Traders Repackage Local Rice as Imported Brands for Higher Profits
- Traders in Nigerian markets are deceiving consumers by repackaging locally grown rice in foreign-branded bags to sell at higher prices
- Investigations revealed a well-organized scheme in markets like Alaba Rago and Daleko, where workers methodically engage in this fraud
- This practice not only misleads buyers and inflates prices but also raises concerns about food quality and safety
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Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology, Banking and the Economy.
A growing number of traders in Nigerian markets are deceiving consumers by repackaging locally grown rice in branded foreign bags to sell at higher prices.
This unethical practice, uncovered in markets such as Alaba Rago, Alaba Suru, and Daleko in Lagos, takes advantage of the high demand for imported rice, which many Nigerians perceive as superior.
Source: UGC
Foreign rice is often associated with better quality, appearance, and taste. Consumers believe it is cleaner, has more polished grains, and is less starchy compared to locally grown varieties.
The aroma of local rice, sometimes considered less pleasant, further drives the preference for imported brands. Exploiting these consumer biases, dishonest traders falsely label local rice as foreign to boost profits.
How rice traders defraud buyers
Investigations by Punch revealed a well-organized operation where traders repackage locally produced rice in foreign-branded bags such as Cap Rice, Royal Stallion, Sunrise, and Tomato.
At Alaba Rago Market, young workers were seen methodically pouring local rice into foreign bags and sealing them for resale. A middle-aged man, using a bag-sealing machine, charged between N100 and N200 per bag to complete the deception.
At Daleko Market in Mushin, the scheme appeared even more elaborate. Stacks of empty branded bags were openly sold, making it easy for traders to pass off local rice as premium imported varieties.
The rebranded rice fetched prices as high as N95,000 per 50kg bag, significantly more than the actual price of local rice.
Unlike properly processed imported rice, which undergoes extensive cleaning and drying, local rice can absorb moisture or develop a slight odour if not stored correctly.
This deception not only misleads consumers but also compromises food quality and safety.
In a previous report, Legit.ng exposed how rice traders deceive consumers with false weight claims, revealing a significant disparity between the advertised bag sizes and their actual contents.
Rice, once an affordable staple in Nigeria, has become increasingly out of reach for many due to soaring prices driven by flawed government policies.
These rising costs reflect the country's broader economic struggles, leaving many Nigerians longing for a time when a bag of rice was more affordable.
Impact on consumers and local farmers
The General Manager of the Lagos State Consumer Protection Agency, Afolabi Solebo, condemned the fraudulent practice, stressing its negative impact on consumer trust and the local rice industry.
He noted that by falsely marketing local rice as imported, traders discourage support for Nigerian farmers and millers who work hard to improve production quality.
Source: Getty Images
He said:
“Consumers are being misled into purchasing a product that is entirely different from what they believe they are paying for. Beyond defrauding buyers, this trend also poses a significant threat to the economy, as it undermines the growth and competitiveness of the local rice industry.”
Solebo highlighted the urgent need for stricter regulations and consumer awareness to prevent further exploitation.
He insisted that authorities must take action against traders engaging in deceptive repackaging to protect consumers and promote locally produced rice.
Smuggled rice worsens Nigeria's Forex crisis
In related news, Legit.ng reported that the Nigerian Customs Service has warned of the consequences of smuggling prohibited items, especially rice and petrol.
The Service reiterated that the continuous smuggling of these banned goods adversely affects Nigeria's economy and creates forex woes.
Speaking to journalists, the Customs Area Controller highlighted the need to stop rice smuggling so that local rice millers can succeed.
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Source: Legit.ng
