Nigerians React as Dealers Crash Rice Price, Survey Shows Cheapest Brands

• Rice dealers across Nigeria have reported a crash in the price of the commodity following the rising value of the naira
• Surveys across markets in Nigeria and border communities show that the price has crashed from N90,000 to N63,000 per 50kg bag
• Experts attributed the crash in price to the change in the foreign exchange market, where the naira is recovering against the dollar

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

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.

Rice price rose to N90,000

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.

Following the naira crash against the dollar, the commodity's price soared to N90,000 in Lagos between February and March.

However, surveys across various markets in Lagos, Abuja, Ogun, and other states show that food items' prices have dropped drastically.

Sellers report a drop in rice prices

Punch reports that sellers in various markets said the product's price had crashed between N65,000 and N63,000 compared to December 2023 and January 2024, when it sold for between N75,000 and N80,000 per 50kg bag.

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Experts say the recent price adjustment was due to exchange rates, supply dynamics, and government policies.

Most importantly, the naira appreciation against major currencies has played a critical role in crashing the commodity price, making it more affordable to consumers.

Paddy rice crashes from N70,000

According to reports, a 100 kg bag of paddy rice was sold for between N9,000 and N20,000 in the last three years, depending on the brand and quality. However, depending on the location, the commodity's price soared to N55,000 and N70,000 in the previous year's quarter.

Other factors reportedly affecting the price include a rise in transportation costs caused by the scrapping of the petrol subsidy and the high price of diesel.

Nigerians have expressed delight on social media over the drop in the price of the product.

According to them, foreign rice is now selling for between N50,000 and N52,000 per 50kg of bag in selected markets in Lagos.

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Legit.ng reported that the crash in rice prices mirrors the general crash in other commodities, such as flour, wheat, and other food items, as the exchange rate modifies.

Nigerians groan as rice price Hits N77,000 per bag

Previously, Legit.ng reported that Nigerians in their millions are now adopting severe cost-cutting measures to cope with the hardship caused by the astronomical rise in the prices of goods and services.

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

The December headline inflation increased by 0.72% compared to November 2023.

Source: Legit.ng