"No More N28k": 50kg of Rice Hits N42,000 as FG Mobilises $500 Million For Food in Nigeria

"No More N28k": 50kg of Rice Hits N42,000 as FG Mobilises $500 Million For Food in Nigeria

  • Nigerians have reported a sharp increase in the price of rice in the country
  • They say the price of the commodity has risen from N30,000 per 50kg to N42,000
  • The development follows a statement by the federal government that it's set aside $500m for food

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Removing subsidies from petrol has caused a sharp increase in food prices, especially rice, in Nigeria.

Checks by Legit.ng reveal that the price of rice, Nigeria's staple, has risen astronomically in the last two weeks in June as petroleum marketers increased the price of petrol from N500 per liter to N617 per liter.

Food prices, rice
Nigerians lament the high cost of rice and other food items Credit: Bloomberg
Source: Getty Images

Traders lament impact of petrol subsidy on prices food

Survey shows that in most markets, traders have added to the already high cost of rice, blaming it on several factors, including the high price of transportation, inflation, and border closure.

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Traders told Legit.ng that the retail price of the commodity has skyrocketed from N500 per 1kg or one Derica to N700.

According to traders, most have yet to receive new supplies in the last three weeks.

Ugochi Egwu, a foodstuff seller in the Ogba market in Lagos, told Legit.ng that his suppliers informed him that the price of rice he bought for N30,000 two weeks ago now sells for over N40,000.

He said:

"That is an additional N10,000. How many people are ready to buy the product for that amount?
"We are mostly retail sellers, and those who patronize us are end users."
"My customers were alarmed when I told them that a Derica of rice is now N700 instead of the N500 we sold last month."

He lamented that despite the purported border reopening by the Nigerian government, Customs has kept the commodity from coming in.

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"What is the essence of reopening the borders if you won't allow important commodities such as rice to come into the country? He said.

Recent data by SatiSense captured from the National Bureau of Statistics (NBS) reveal that Nigerians spent N22 trillion in food consumption in 2019.

Nigerians spend N22 trillion on food in one year

Vanguard says that the report contains an analysis of how that amount was spent on food consumption in 2019 and was released by NBS on Twitter on Friday, July 21, 2023.

It detailed that rice is among Nigeria's most frequently consumed staples, accounting for 90%.

FG to raise $500 million for food

The development comes as the Nigerian government said it had budgeted about $500 million for food in Nigeria to alleviate the pains of subsidy removal.

Vice President Kashim Shetimma said the country mobilized the amount for innovative, profitable, equitable, and sustainable food transformation initiatives.

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A report by Arise Television said that Shettima disclosed this as he chaired a high-level meeting on day one of the UN Food Systems Summit in Rome and organized by the United Nations Secretary-General, Antonio Guterres.

Shettima noted that the funds were mobilized through domestic resources, multilateral development banks, international finance institutions, and climate funds for agro-businesses.

India bans rice export to Nigeria, other countries amid inflation as commodity hits N40,000 per 50kg

Legit,ng reported earlier that the Indian government says it has stopped the export of non-basmati white rice to Nigeria and other countries to lower the cost of the staple in the country.

The country’s Ministry of Consumer Affairs, Food, and Public Distribution revealed the export ban in a statement on Thursday, July 20, 2023.

The non-basmati rice is a small grain rice and is widely consumed in the Asian country.

Source: Legit.ng

Authors:
Pascal Oparada avatar

Pascal Oparada (Business editor) Pascal Oparada is a Mass Communications Graduate from Yaba College of Technology with over 10 years of experience in journalism. He has worked in reputable media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng

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