Amidst increasing production costs and logistical challenges, the price of local rice in Nigeria has surged by a staggering 73.2% over the past year, significantly impacting the nation’s food economy. Despite substantial financial investments from the Central Bank of Nigeria to boost local rice production, prices continue to soar, affecting the availability and affordability of this essential staple.
Rice, a widely consumed staple food in Nigeria, has experienced a substantial price hike despite being locally produced. The average price for a 50kg bag now ranges between N55,000 and N60,000, reflecting the profound impact of rising production and distribution costs, along with other contributing factors.
Data from the National Bureau of Statistics reveals that the average price of 1kg of local rice has risen from N500.80 to N867.20 between November 2022 and November 2023, representing a 73.2% increase. In comparison, the price of 1kg of imported foreign rice has also surged by 61.53% during the same period, reaching N1,137.
Lagos State stands out as the region with the highest price for local rice, reaching N1,122.42 per kg, despite the presence of the Lagos Rice Mill in Imota. Conversely, Kebbi State offers the lowest price at N688 per kg.
Kabir Ibrahim, the National President of the All Farmers Association of Nigeria, attributes the soaring rice prices to inflation and its associated escalation of production costs. He emphasizes that factors such as logistics, packaging, and labor expenses have significantly contributed to the mounting prices.
Expressing doubt about the NBS figures, Ibrahim argues that they do not accurately reflect the market reality. He highlights the high cost of production, exacerbated by challenges such as transportation and power supply, as key factors influencing the pricing of local rice.
Looking ahead, a joint report by the Food and Agricultural Organization, World Food Program, and other organizations forecasts an increase in staple food prices across West Africa in 2024. This projection signifies the broader regional impact of food inflation and production challenges, underscoring the need for innovative solutions to secure food accessibility and affordability.
As Nigeria grapples with the significant hike in local rice prices and its far-reaching implications, it becomes imperative for stakeholders to address the multifaceted challenges facing the nation’s food industry. The evolving landscape of food production, distribution, and pricing warrants strategic interventions to ensure sustainable access to essential commodities for all.
