Rice prices crash in Lagos markets, traders count losses as consumers rejoice

Rice prices crash in Lagos markets, traders count losses as consumers rejoice

LAGOS – The price of rice has dropped significantly across major markets in Lagos, bringing relief to consumers but leaving many traders grappling with losses and uncertainty.

A market survey conducted by the News Agency of Nigeria (NAN) revealed that a 50kg bag of rice now sells for between ₦55,000 and ₦70,000, depending on the brand and location. This marks a sharp decline from earlier in the year when local rice sold for as high as ₦85,000 and foreign brands peaked at ₦95,000.

The price crash has been attributed to a surge in imports following the reopening of land borders, as well as improved local harvests and increased supply from northern states.

In markets such as Oyingbo, Arena (Oshodi), Festac Town, and Mile 12, traders confirmed that both local and imported rice brands have seen a steep drop in prices since August.

At Arena Market, Mrs. Precious Okoro, a rice dealer, lamented the impact on her business. “We are selling at a loss. I bought several bags at ₦80,000 and ₦85,000 earlier this year, and now I have to sell them for as low as ₦65,000. The fall came suddenly, and it’s been tough for us,” she said.

She added that while consumers are pleased, traders are struggling to recover their capital. “Rice doesn’t spoil easily, but when prices crash like this, our money is tied down. Some of us can’t even restock,” she said.

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At FESTAC Town Market, Mrs. Edith Nwaruh listed current prices: Pretty Lady at ₦57,000, Mama Africa at ₦62,000, Mama Gold at ₦67,000, and Big Bull Premium at ₦73,000. She noted that the decline began in August due to increased supply.

“We have more rice in the market now. Local production improved, and imports also increased. When there’s too much supply, prices must drop,” she said.

Mr. Odion Michael, a trader at Mile 12 Market, described the situation as a “double-edged sword.” “Consumers are happy, but traders are weeping. We want prices to be stable, not jumping or falling suddenly. Price stability helps us to plan our business,” he said.

A rice farmer who spoke on condition of anonymity linked the development to the reopening of land borders, which has allowed more rice to enter the country from neighbouring producers. He warned, however, that the current price drop may not be sustainable and that prices could rise again before December due to market volatility.

Mr. Ben Chidi, a trader at Oyingbo Market, said improved supply and reduced stockpiles contributed to the glut. He credited government support for local farmers and better distribution channels for the current situation.

Consumers, on the other hand, are expressing relief. Mrs. Andriana Okoromaro said the drop was timely. “At least, rice is affordable again. I used to buy a half bag because it was too expensive. Now, I can buy a full bag for the family. It’s a big relief,” she said.

Mrs. Oluwaseun Alade said she hoped the prices would remain low during the festive season. “Rice is essential during Christmas and New Year. This drop, if sustained, means more families can celebrate without worry,” she said.

However, Mrs. Ngozi Okolie pointed out that reduced purchasing power is also playing a role in the price drop. “People don’t have much money, even with lower prices. The economy is slow, so even when goods are cheap, sales are not what they used to be,” she said.

While the current trend has brought temporary relief to households, stakeholders are calling on the government to implement policies that will ensure price stability and support for local producers to sustain the gains and protect traders from future shocks.

(NAN)