Rice Prices Drop to N67,000 in Lagos, Abuja Amid Naira Rebound
Written by Jerry Alomatu on April 23, 2024
In the wake of the recent strengthening of the naira against the dollar, the cost of a 50-kilogram bag of rice has seen a significant decline, averaging around N67,000 in Lagos, Abuja, Ogun, and surrounding areas. This marks a notable reduction from the approximately N90,000 price tag observed in February 2024.
Reports from communities adjacent to the borders indicate even lower prices, with the staple selling for as low as N49,000 or less in Ogun border towns like Imeko, Idiroko, and Oja-Odan. In Saki, a border community in Oyo State, Ms. Mayowa Tosho noted that a bag of rice now goes for N42,000.
Observations suggest that the prices of foreign parboiled rice have experienced more substantial drops compared to local brands. This trend follows measures implemented by the government, including the ban on rice importation through land borders by former President Muhammadu Buhari in 2015.
Furthermore, the Central Bank of Nigeria’s decision to lift the ban on rice and other items from accessing foreign exchange through official channels has contributed to the recent price adjustments. Data analysis from the National Bureau of Statistics indicates a gradual increase in the average price of local rice over the years, reaching N520.84 as of February 2023.
Despite challenges such as the removal of petrol subsidies and currency fluctuations, recent market visits across various regions confirm a downward trajectory in rice prices. Traders in locations like Ilara, Imeko, and Iperu Junction in Ogun State have reported significant decreases, with prices dropping from as high as N88,000 to around N65,000 per 50-kilogram bag.
In Lagos, wholesale food sellers in markets like Isolo Market have witnessed similar declines, with prices falling from N80,000 to N66,000 per bag. Factors such as the strengthening naira and reduced smuggling activities through border towns like Seme have contributed to these price reductions.
While some traders attribute the price adjustments to the need to offset previous losses incurred during periods of unfavorable exchange rates, others remain optimistic about further declines. Social media platforms have also become avenues for Nigerians to share their recent rice purchase experiences, reflecting the ongoing shifts in market dynamics.
In summary, the recent drop in rice prices across key regions reflects a combination of factors, including currency stabilization and government interventions aimed at promoting local production and ensuring affordability for consumers.
FOLLOW OUR SOCIAL MEDIA CHANNELS:
- WhatsApp channel: Shiloh Media Advertising
- Facebook: Shiloh Media
- Twitter: Shiloh Media
- Instagram: Shiloh Media
- YouTube: Shiloh Media
Author: Jerry Alomatu
Astute communicator
