Following the recent rebound of the naira against the dollar, the price of a 50 kilogramme bag of rice has dropped to an average of N67,000 in Lagos, Abuja, Ogun, and others, from about N90,000 in February 2024.
In communities close to the borders, our correspondents gathered that the staple was selling at a much lower rate compared to what was obtained in the cities.
For example, in Ogun border communities like Imeko, Idiroko, Oja-Odan, and others, a bag of rice was selling for around N49,000 or below.
According to Ms Mayowa Tosho, a bag of rice now sells for N42,000 at Saki, a border community in Oyo State.
Our correspondent gathered that the prices of foreign parboiled rice had dropped more than those of local brands.
The PUNCH reports that former President Muhammadu Buhari banned the importation of rice through the land borders in 2015.
The Federal Government, through the Nigeria Customs Service, said rice should only be imported through the seaports after the payment of all necessary duties.
In the same year, the Central Bank of Nigeria prohibited the importers of rice and 41 other items from accessing foreign exchange through the official window, to promote local production.
However, the ban on those items, including rice, was lifted by the apex bank in October. As a result, they can now access forex from the official market.
Since then, the prices of rice have continued to soar above the purchasing power of ordinary Nigerians.
Data from the Selected Food Prices Watch Report of the National Bureau of Statistics analysed by The PUNCH showed that the average price of 1kg of local rice rose from N172.74 in February 2016 to N520.84 as of February 2023.
The removal of subsidy on petrol and the floating of the naira in the middle of last year shot up the prices of food items, leading to high inflation.
As the dollar fell against the dollar, rice soared to as high as N90,000 in Lagos between February and March.
However, our correspondents, who visited various markets across Lagos, Abuja, Ogun, and others, confirmed that the food items were on a downward trend.
Selected rice sellers in Agege and Oshodi markets said the price of rice had been reduced to between N65,000 and N63,000 compared to December 2023 and January 2024, when the staple was sold between N75,000 and N80,000.
The traders, who spoke with our correspondent, noted that the long grain rice, which sold between N42,000 and N50,000 mid-last year, jumped to N80,000 in January, causing an outcry among consumers.
In Oshodi, Ogechukwu Amadi noted that she bought a bag of rice between N74,000 and N76,000 in December and sold it for N83,000 during the period.
According to Amadi, she now buys rice for around N60,000 and sells it for N63,000.
“Our purchase rate will always determine our selling price. In most cases, wholesalers usually add about N2,000 to their selling price, and this has caused non-uniformity in the prices traders sell in the market.
“In December, I was buying between N74,000 and N76,000. But I now sell for N65,000 and sometimes N62,000, depending on who sold the stock to me,” she stated.
Another trader in the Agege market, who simply identified himself as Ade, confirmed to our correspondent that the price of the 50kg bag of rice had been reduced to around N60,000.
“We can only thank God that the hardship is not as serious as it was in February. Rice practically turned gold, but we thank God today. I wish it could return to N40,000,” he said.
Similarly, the price of a 50kg bag of rice dropped in different parts of Ogun State.
Our correspondent gathered that the prices differ based on the proximity of the areas to the borders with the Republic of Benin, as communities like Imeko, Ilara, Idiroko, Ipokia, Oja-Odan, and others get the commodity cheaper.
“I bought one bag of rice for N47,000 in Ilara last week. It was close to N70,000 in February and March, even here at the border. But now it is coming down,” a trader, who identified herself as Adeyinka, said on Monday.
Mr Friday Igwe, who sells foodstuffs along Iperu Junction, Ikenne Local Government Area of Ogun State, informed our correspondent that the price of rice had dipped to N65,000, from N88,000 between February and March, while it was N55,000 in December 2023.
He, however, lamented that the prices of beans and garri had continued to increase.
“The price of rice is coming down. As of today, we sell at N65,000 per 50kg bag. Some can even sell at N64,000. It peaked at N88,000 or even N90,000 in February and March, from around N55,000 in December.
“We thank God that it is coming down now. But, the prices of beans and garri are not reducing; instead, they keep rising. The government should do something about it,” Igwe noted.
The Ebonyi State indigene noted that the high cost of food items had affected patronage, saying only a few could afford a small plastic of rice at N2,400 instead of N700 in October last year.
Another trader along Sagamu Road, Adamu confirmed to our correspondent that the price of a bag of rice was now N65,000.
“The price of rice has dropped. In February, we were selling it for between N80,000 and N85,000; but it has now dropped to N65,000. But the prices of garri and beans did not reduce,” he remarked.
In the Oja-Ale area of Iperu, Success said he could sell one bag of rice at N63,000 if the customer was ready to pay immediately.
“I can’t remember how much we sold a bag of rice for in December. But I know it went up above N80,000 last month. Some even sold for N90,000. Today, it goes for N65,000. I can still sell it for N63,000 if the customer is paying in full,” Success told our correspondent.
It was gathered that a 50kg bag of rice cost N63,500 in Abeokuta, the Ogun State capital, on Monday.
SOURCE: PUNCHNG
