Rice Dealers Crash Prices by N20,000 Per 50kg Bag as Report Predicts Further Drop in 2025

• Rice dealers have reported a considerable drop in the commodity’s price since the beginning of February 2025
• According to them, a 50kg bag of rice, which sold for N88,000 to N90,000 in January, now sells for N65,000
• Similarly, the price of 25 litres of vegetable oil, sold for N85,000 in January, now sells for N66,700

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The price of rice has crashed by N20,000 as dealers reported a glut in the market after Christmas.

Legit.ng exclusively gathered that the price of the commodity, which sold for N85,000 in January, has crashed to N65,000 per 50kg bag.

Rice price: Dealers explain the reason for crash

A market survey conducted by Legit.ng shows that dealers also crashed the prices of other essential commodities.

The price of 25 litres of vegetable oil, which sold for N85,000 in January, also crashed to N66,700.

Rice dealers revealed a glut in the market, forcing the staple's prices to crash considerably after the Yuletide.

Emmanuel Odialo, a rice wholesale dealer in Lagos, said the crash took them by surprise and attributed it to massive importation by the Nigerian government.

“Right now, we have been forced to reduce the prices of our old stocks. A 50kg bag of various brands, which we sold for N88,000 to N90,000 in January now sells for N65,000. This means the price has reduced by N20,000 to N25,000,” he said.

According to him, dealers are unsure how long the current rate will last but disclosed that the price has drastically reduced.

“I’m sure that the adjustment in import tariffs and the 150-day import duty-free window by the Nigerian government is affecting the prices of essential food items.

He said imported and locally-produced rice have been affected by the price reduction.

Vegetable oil prices drop

A foodstuff seller in the Ogba axis of Lagos, Onyinyechi Ihedi, also confirmed that 25 litres of vegetable oil, sold for N85,000 in January, now sells below N70,000.

According to her, the price reverted to N66,700 last week, but she did not point out why.

“We have been forced to adjust the prices of both vegetable and palm oils due to the drop in prices. Maybe this could be a harvest season,” she stated.

Also, the price of other items such as tomatoes and peppers has seen a significant drop as farmers report low patronage.

Rice production declines in Nigeria

There are growing concerns that Nigeria could face a significant shortfall in rice supply, with a projected deficit of 2.18 million tonnes, valued at N1.43 trillion, due to declining production levels.

According to projections for the 2024/2025 season, milled rice production in the country is expected to decrease from 5.60 million tonnes to 5.22 million tonnes, while paddy rice production is forecasted to drop from 8.90 million tonnes to 8.30 million tonnes.

Data from the National Bureau of Statistics (NBS) reveals that rice consumption in Nigeria will rise to 7.4 million metric tonnes by 2025.

This increase in demand is largely attributed to the growing preference for rice, as it remains one of the most affordable staple foods compared to others.

However, the data also indicates that the country’s production challenges will lead to higher rice prices, with paddy rice expected to rise from N1.10 million to N1.30 million per metric tonne by the third quarter of this year.

Rice farmers lament low production

Legit.ng reports that AFEX revealed that global rice production will rise by eight per cent, while prices will decline by 11% in 2025.

The New Telegraph reported that the Rice Farmers Association of Nigeria (RIFAN) has expressed concern over rising demand.

Raphael Hanusa, RIFAN state chairman in Lagos, said that local production could not meet demand, stressing that rice production in Lagos has been consistent for some time, but not enough to meet rising demand.

According to Hanusa, the production capacity of RIFEN members has been low as they could only produce 3,800 tonnes.

Dealers sell rice at new rate after Christmas

Legit.ng previously reported that the price of rice rose after crashing during the Christmas and New Year holidays.

Feelers show that the price of the commodity, which sold for between N65,000 and N67,000 per 50kg bag, rose again and caused panic in many households after a brief respite.

Findings show that the price of a 50kg bag of imported Indian short grain, which crashed from N90,000 in December to N65,000 and N67,000, had risen to about N75,000, with traders expecting further increases.

The article was updated with additional information by the head of the business desk, Victor Enengedi.

Source: Legit.ng