The price of a 50kg bag of rice in Nigeria has dropped significantly to as low as N58,000 in some areas, especially in border communities, according to a new report by S&P Global.
The report highlights that the West African parboiled rice market has tumbled to a near two-year low due to a glut in supply, primarily driven by India’s removal of export duties on parboiled rice. This policy change has resulted in a flood of cheaper rice into the region, especially through the Republic of Benin, from where the commodity enters Nigeria.
“Despite the price decline, demand has not risen correspondingly. With prices continuing to slide daily, buyers are adopting a cautious approach, waiting for stabilisation before making purchases,” the report said.
According to Platts, a unit of S&P Global Commodity Insights, rice warehouses in Benin are now filled to capacity. This overflow is driven by massive Indian exports, which rose sharply between September and December 2024 — reaching 2.11 million metric tonnes, compared to 720,000 metric tonnes during the same period in 2023.
Citing data from the Agricultural and Processed Food Products Export Development Authority, the report further states that India exported 5.35 million metric tonnes of parboiled rice to West Africa in 2024, up from 3.9 million metric tonnes the previous year.
A trader in Togo noted: “The current situation in almost every region of West Africa is the same — quiet and bearish.”
Nigeria, being the largest rice market in the region, has seen a significant drop in rice prices — both local and imported — within the last two weeks. Despite a government ban on rice imports, the country continues to record high levels of smuggled rice from Benin Republic, a long-standing challenge for the Nigerian Customs Service.
Locally produced rice, which recently sold for as high as N90,000, now sells for around N60,000, while Indian-imported rice has dropped to N80,000 in some markets.
In border towns in Ogun State, rice prices have plummeted even further, with 50kg bags reportedly selling for below N50,000, driven by the proximity to Benin and cross-border rice smuggling.
A rice trader in Benin Republic commented that demand will likely pick up later in the year: “Demand is only likely to increase once the Christmas season comes into focus around September.”
Despite being officially banned, rice remains the most smuggled commodity in Nigeria, and enforcement agencies continue to struggle with curbing its illegal entry through porous borders.
Nigeria’s continued dependence on imported rice — especially via unofficial channels — remains a major concern for local rice producers, who struggle to compete with the influx of cheap Indian rice.
