Nigerian households are breathing a sigh of relief as the price of rice, a major staple, has witnessed a significant drop across markets nationwide just weeks before the Christmas celebrations. This welcome development comes as a respite for families grappling with the high cost of food items.
Market Data Shows Significant Price Reduction
Fresh market surveys indicate that a 50kg bag of locally produced rice is now selling for approximately N60,000. This is a notable decrease from previous highs. Imported foreign rice has also seen a reduction, with prices currently ranging between N72,000 and N80,000 for a 50kg bag. Industry experts and traders have confirmed this downward trend, attributing it to a combination of factors including increased local harvests, improved distribution networks, and the federal government's decision to reopen the country's land borders.
Lagos State Governor, Babajide Sanwo-Olu, publicly confirmed the price crash. Speaking at the 60th Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria on Friday, November 26, the governor announced that rice produced in Lagos now sells for between N57,000 and N58,000 per 50kg bag. He described this as a positive indicator of improving inflation and growing economic stability.
Governor Sanwo-Olu Credits Economic Reforms
Governor Sanwo-Olu stated that the current market price reflects the impact of broader macroeconomic reforms and a more disciplined monetary environment. He credited the Central Bank of Nigeria (CBN) for its role in stabilizing inflation, managing foreign exchange, and boosting investor confidence. "About this time last year, buying a bag of rice was a struggle. Today, across the country, a 50kg bag costs under N60,000," Sanwo-Olu said. He also revealed that Lagos operates the country's largest rice mill, with over 200,000 bags currently available for sale.
The trend is not limited to Lagos. Reports from markets in other regions, such as Owerri in Imo State, show similar patterns. Traders there linked the price fall to the gradual end of the rainy season, which has reduced grain spoilage and improved preservation. In Owerri, a 50kg bag of local rice previously sold for N65,000 now goes for about N60,000.
Mixed Reactions from Traders and Consumers
While consumers are celebrating, some traders have expressed concerns over shrinking profit margins. Precious Okoro, a rice dealer in Lagos, lamented, "I bought several bags at N80,000–85,000 earlier this year. Now I have to sell them for as low as N65,000. Consumers are happy, but traders are counting losses."
For end-users like Andriana Okoromaro, a civil servant, the price drop is a major relief. "At least rice is affordable again to an extent. I used to buy a half-bag because it was too expensive. Now I can buy a full bag for the family," she said. "If this continues, more families can celebrate the festive season without worry."
Analysts Urge Cautious Optimism
Despite the positive news, financial analysts caution that the decline may be temporary. They warn that market instability and fluctuating supply chains could cause prices to rise again before the peak of the December festivities. The current drop is largely tied to seasonal improvements in local harvests and the influx of imports following the border reopening.
The federal government has also welcomed the development. The Minister of Finance and Coordinating Minister for the Economy, Wale Edun, recently stated that the government's economic reforms are beginning to yield results. In an opinion piece, he noted that inflation pressures are easing, referencing that the price of a 50kg bag of rice is now averaging N80,000, which is about N20,000 to N40,000 lower than last year's peak prices of between N100,000 and N120,000.
