Dealers Sell Rice, Beans, Other Food Items at New Rates as FG’s Import Waiver Crashes Prices

• The Nigeria Customs Service has said it approved N95.1 trillion worth of import waivers on essential food items in 2024 and 2025
• The agency disclosed that the policy was responsible for the recent crash in essential food items such as rice, maize and others
• The development comes as rice prices fell  as foreign cereals hit the Nigerian market, driven by India’s exports

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

The Nigeria Customs Service (NCS) granted waivers on essential food imports, amounting to over N95.1 trillion between 2024 and Q1 2025.

The Service said the move contributed significantly to the recent crash in food prices such as maize, rice, and sorghum nationwide.

FG grants a 150-day import duty-free window

The Comptroller General of Customs, Adewale Adeniyi, disclosed this recently at a press briefing.

Legit.ng reported that the Nigerian government opened a 150-day import duty-free window to allow for imports of essential food items to combat food inflation.

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The move allowed Nigerians to import essential food items into the country to tame the rising food inflation.

The Customs CG Adeniyi disclosed this on Tuesday, August 13, 2024, in Abuja at the second Economic Confidential Lecture.

According to the Nigerian Customs Service, the Nigerian government will forfeit about N187 billion in import duty during the policy period.

This comes as the prices of foreign parboiled rice hit the Nigerian market following a global glut in major producing countries.

India’s rice floods the global market

The price crash is due to oversupply in India, the world’s largest producer, which has increased global stockpiles for the second season, forcing rice prices to their lowest in 15 years.

Since February, prices of local and foreign rice have reduced and remained relatively stable.

Findings show that a 50kg bag of foreign parboiled rice has crashed to N65,000 from N93,000 in January, showing a 28% decline year-to-date.

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According to a BusinessDay’s report, India’s five per cent broken parboiled variety was sold at $500 to $510/mt as of Monday, April 21, 2025, from $530 to $536 last week.

Thai’s 100% broken rice, which was sold at $413/mt in March, crashed to $405 in April, representing an $8 price drop.

Nigerians to experience more price reductions

Experts say they expect further price drops due to the current glut in the global rice market.

Also, the currency crash against USD contributed to price reduction, causing the downward pressure already set by India’s abundant Kharif crop supplies.

Nigerian traders explain the reason for the decline in food prices

Legit.ng earlier reported that in recent weeks, Nigerians have seen a slight decline in the price of food items nationwide. In some cases, the drop recorded is as steep as 40%.

This is a major relief for Nigerians, especially after the consistent months of surging inflation recorded in 2024.

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Traders have now offered reasons for the drop in food prices, explaining how long it will last.

Source: Legit.ng