The recent strengthening of the naira against the dollar has led to a drop in the price of a 50-kilogram bag of rice, now averaging N67,000 in Lagos, Abuja, Ogun, and other areas, down from about N90,000 in February 2024. In border communities like Imeko, Idiroko, and Oja-Odan in Ogun State, rice is selling for as low as N49,000. Even in Saki, a border community in Oyo State, a bag of rice now sells for N42,000, according to Ms. Mayowa Tosho.
The reduction in rice prices is more pronounced for foreign parboiled rice compared to local brands. The drop in prices is attributed to several factors, including changes in exchange rates, supply dynamics, and government policies. The ban on rice importation through land borders in 2015 by former President Muhammadu Buhari, and the subsequent prohibition of accessing foreign exchange through the official window for rice importers, were aimed at promoting local production. However, the ban on these items, including rice, was lifted by the Central Bank of Nigeria in October, allowing importers to access forex from the official market.
While consumers welcome the price reduction, economists urge caution, emphasizing the need for sustained stability in the rice market. The recent appreciation of the naira against other currencies has made imported goods more affordable, contributing to the drop in rice prices. However, there are regional disparities in price trends, with some areas still experiencing high prices for rice.
