The recent decline in rice prices in Nigeria has elicited mixed reactions from citizens and traders, with economists attributing the disparity to conflicting interests. According to Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise, and the Executive Officer of SD & D Capital Management, the drop in rice prices is a result of conflicting desires between Nigerians who want affordable food and business owners seeking higher profit margins.
A 50-kilogramme bag of rice now sells for between N55,000 and N75,000, down from N85,000 earlier in 2025, in major markets such as Mile 12 and Oyingbo in Lagos State. In Abuja, Dutse, and Kubwa markets, the price ranges from N65,000 to N85,000, depending on the brand. The prices of other food items, including yams, beans, onions, and tomatoes, have also decreased.
Data from the National Bureau of Statistics shows that headline and food inflation declined to 18.02 percent and 16.87 percent in September 2025, from 20.12 percent and 21.87 percent in August. While the price drop is welcomed by Nigerians, traders are concerned about the negative impact on their investments due to declining profit margins.
To address this issue, the federal government has been urged to create a fair balance between affordable food prices and sustainable businesses. Yusuf emphasized the need for consistent government policies to support local production and ensure that the price of rice remains affordable for the masses. The rice and other staple food import waiver policy, which ended in December 2024, was a temporary measure that helped reduce prices.
The decrease in rice prices is seen as a positive outcome of the government’s import waiver policy on food items, which was introduced to reduce the price of food. However, local farmers have expressed concerns about the impact of the policy on indigenous food production. The federal government’s efforts to stabilize the economy through well-thought-out policies, including the temporary waiver on imports of selected staple food items, have started to yield results.
The price drop has significant implications for the Nigerian economy, and the government’s next steps will be crucial in maintaining a balance between affordable food prices and sustainable businesses. As the economy continues to evolve, it is essential for the government to prioritize policies that support local production and ensure that the benefits of economic growth are shared by all stakeholders.