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The price of a 50kg bag of rice in Nigeria has plummeted to as low as ₦58,000 in some regions, driven by a surge in rice imports through the Republic of Benin, according to a new report by S&P Global.
According to the report, the West African parboiled rice market has tumbled to near two-year lows, following India's removal of export duties on parboiled rice.
This policy shift triggered a flood of cheaper rice into West African markets, significantly affecting prices across Nigeria.
Market sources cited by Platts, a division of S&P Global Commodity Insights, said warehouses in Benin are "filled to capacity" as Indian rice pours in.
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Between September and December 2024 alone, India exported around 2.11 million metric tonnes of parboiled rice to West Africa — nearly triple the 720,000 metric tonnes exported during the same period in 2023.
“The current situation in almost every region of West Africa is the same — quiet and bearish,” said a trader based in Togo.
Drop in prices of local rice
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Nigeria, the region’s largest rice consumer, has seen local and imported rice prices nosedive over the past fortnight.
Locally produced 50kg bags of rice have decreased in price from ₦80,000 to ₦90,000 to around ₦60,000, while imported Indian rice is priced at ₦80,000.
In border towns in Ogun State, the staple reportedly sells for even less, dropping below ₦50,000 due to the ease of cross-border smuggling. Despite the steep price decline, demand has not picked up.
"With prices continuing to slide daily, buyers are adopting a cautious approach, waiting for stabilisation before making purchases," the report added. Smuggled rice remains a major headache for Nigerian authorities.
The Nigerian Customs Service is reportedly struggling to contain the illegal flow, despite rice remaining Nigeria’s most smuggled commodity.
Analysts predict that a significant uptick in demand may not occur until the festive season, which is expected to start around September.