The escalating cost of rice in Nigeria has become a critical concern, significantly impacting household budgets and contributing to the country’s persistent inflation woes. In October 2024, the average price of local rice soared by a staggering 137.32% compared to the same period in 2023, reaching N1,944.64. This dramatic increase underlines the profound inflationary pressures plaguing the Nigerian food sector, placing an immense burden on citizens already grappling with a rising cost of living. The upward trend continued even on a month-to-month basis, with a 1.56% increase from September 2024, indicating the persistent nature of these inflationary pressures. The price surge isn’t uniform across the nation; stark regional disparities exist, with Kogi State witnessing the highest price at N2,693.41 and Benue State the lowest at N1,267.25. These variations highlight the complexities of regional supply chains, demand fluctuations, and the challenges faced by local farmers and producers in meeting national demand amidst rising production costs and logistical hurdles.
The overall food inflation rate in Nigeria remained alarmingly high in October 2024, reaching 39.16% year-on-year, a significant jump from 31.52% in October 2023. This persistent rise reflects broader economic vulnerabilities, including exchange rate volatility, fuel price hikes, and disruptions to supply chains. Month-on-month, the food inflation rate also saw a 2.94% increase from September 2024, painting a concerning picture of a continuous upward trajectory in food prices. The National Bureau of Statistics (NBS) attributed the year-on-year surge to price increases across various food categories, including cereals (rice, maize, guinea corn), tubers (yam, cocoyam), oils and fats, and beverages like coffee, tea, and cocoa. This persistent and widespread price escalation across essential food items poses a grave threat to food security and household affordability, especially for lower-income families.
Beyond processed local rice, the price of unprocessed agricultural rice, typically a more affordable option, experienced an even steeper year-on-year increase of 138.90%, reaching N2,023.68 in October 2024. This alarming rise further exacerbates the cost-of-living crisis for many Nigerians who rely on this staple food. Again, regional price disparities are evident, with Nasarawa State reporting the highest price at N3,120.49 and Benue State the lowest at N1,354.87. This surge in the price of agricultural rice removes a crucial safety net for budget-conscious consumers and intensifies the overall food affordability crisis. The combined impact of rising prices across different rice varieties – local, agricultural, Ofada, and imported – is a major driver of the broader food inflation trend, deepening the economic challenges faced by Nigerian households.
The price surge isn’t limited to common rice varieties; Ofada rice, a specialty local variety primarily grown in southwestern Nigeria, also saw a dramatic year-on-year increase of 199.16%, reaching an average price of N2,428.65 in October 2024. This sharp rise likely reflects both increased demand for this specific variety and the rising costs associated with its production. Similar to other rice types, Ofada rice prices vary geographically, with Osun State recording a high of N3,400 and Adamawa State a comparatively lower price of N1,425. This price volatility further adds to the complexity of the rice market and underscores the widespread impact of inflationary pressures on various rice varieties.
Imported rice, a significant component of the Nigerian rice market due to the country’s reliance on imports to meet domestic demand, also experienced a substantial price hike. In October 2024, the average price of imported rice reached N2,471.28 per 1kg bag, a staggering 143.21% increase from the previous year. Kogi State recorded the highest price at N3,187.35, while Niger State had the lowest at N2,017.04. Several factors contribute to this surge, including the devaluation of the naira, import tariffs, and global fluctuations in the rice market, exacerbated by factors such as the Ukraine conflict and rising energy costs. The continued dependence on imported rice, despite efforts to boost local production, leaves Nigeria vulnerable to these external market pressures, contributing to the overall price instability.
The cumulative impact of rising prices across all rice varieties – local, agricultural, Ofada, and imported – has become a major driver of food inflation, placing a significant strain on Nigerian households. This crisis has prompted calls for government intervention at all levels – federal, state, and local – to address the escalating cost of basic food items. Despite being the harvest season, a period typically associated with lower food prices, the upward trend persists, raising concerns about food security and the affordability of essential staples for the average Nigerian citizen. The situation calls for comprehensive and urgent action to stabilize rice prices and mitigate the broader impact of food inflation on the Nigerian economy and the well-being of its people.
