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Nigerians React to Rice Price Drop: Cheapest Brands Surging

Rice dealers nationwide have reported a significant drop in rice prices attributed to the strengthening value of the naira. Recent surveys conducted in various markets and border communities reveal a notable decline, with prices plummeting from N90,000 to N63,000 per 50kg bag.

Nigerians React to Rice Price Drop: Cheapest Brands Surging

Experts link this price shift to favorable changes in the foreign exchange market, particularly the naira’s resurgence against the dollar.

Price of rice Dip Amidst Naira Appreciation

As the Nigerian currency, the naira, gains ground against the US dollar, the cost of a 50kg bag of rice has substantially decreased to an average of N67,000 across key cities like Lagos, Abuja, and Ogun. This marks a significant drop from the N90,000 price tag earlier this year. Border communities, in particular, are experiencing even lower prices compared to other regions.

Historical data from the Nigeria Bureau of Statistics (NBS) reveals a turbulent price history for rice. Over seven years, the average cost of 1kg of rice surged from N172.74 in 2016 to N520.84 by 2023. The recent spike in prices saw the commodity reaching a staggering N90,000 in Lagos between February and March. However, recent market surveys depict a stark reversal, with prices witnessing a sharp decline.

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Sellers Witness Rice Price Drop

Reports from various markets corroborate the downward trend in rice prices. Sellers indicate a significant drop from N75,000-N80,000 per 50kg bag in December 2023-January 2024 to the current N65,000-N63,000 range. Experts attribute this adjustment to factors such as exchange rates, supply dynamics, and government interventions, with the naira’s appreciation playing a pivotal role in making rice more accessible to consumers.

Paddy Rice Prices See Fluctuations

In the past three years, the cost of a 100kg bag of paddy rice ranged between N9,000 and N20,000, contingent on brand and quality. However, recent trends saw prices skyrocketing to N55,000-N70,000, influenced by factors like transportation costs driven by the petrol subsidy removal and diesel price hikes. Social media buzzes with Nigerians expressing satisfaction at the reduced prices, with foreign rice now fetching between N50,000-N52,000 per 50kg bag in select Lagos markets.

Nigerians Struggle as Rice Price Peaks

Amidst soaring inflation rates, Nigerians have been grappling with skyrocketing prices across goods and services. December 2023 marked a record-high inflation rate of 28.9%, with the headline inflation increasing by 0.72% compared to November 2023. This economic strain has prompted widespread adoption of stringent cost-cutting measures to navigate the challenging landscape.

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