Why Price of Rice Has Increased by over 400 Percent Despite Nigeria Being Africa’s Largest Producer

Rice, one of Nigeria’s most consumed foods, has witnessed a continuous rise in prices as consumption surpasses the country’s local production.

Used as the major ingredient in making the famous and delicious jollof rice, the demand for rice, at a consumption rate nearly in line with the annual population growth projection of 2.6 percent, has led to an increase in prices. This is despite the fact that in the past seven years, Nigeria has witnessed condemnable growth in rice production.

According to a new report by AFEX Wet Season Crop Production Report 2023, Nigeria’s rice production increased by over 35 percent from 3.9 million metric tonnes in 2015 to 5.4 million metric tonnes in 2022 – becoming the largest producer in Africa.

However, ordinary Nigerians are not buying rice cheaper than they did in 2015. In fact, the price of one bag of 50Kg of rice has increased by over 400 percent within the same period.

This year, due to India’s ban on rice exports and the impact of El Nino, the price of rice reached the highest point in nearly 12 years on a global scale. However, Nigeria’s prices were further exacerbated as a result of soaring inflation, which is at an 18-month year high of 27.33 percent.

Two months ago, a kilogram of local rice sold for ₦757 in September 2023, up from ₦471 a year earlier, according to September Selected Price Food Watch data released by the National Bureau of Statistics (NBS).

Although local production has been unable to meet demands, prompting the country to import an additional two million metric tonnes annually, which has cost $15 billion in the last decade, other factors have also dwindled Nigeria’s prospect of becoming self-sufficient in rice production.

AFEX data shows that insecurity, delayed rainfall, pest infestation, insufficient rainfall, excess rainfall, low access to input, low access to finance are the major reasons affecting rice production in Nigeria.

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In a special report, Neusroom disclosed how Gideon John, a 25-year-old rice farmer in Adamawa state, lost his rice farm, valued at N9 million, to the 2022 devastating flood that killed over 600 people.

“In 2022, over 100,000 hectares of rice were adversely affected by flooding, resulting in a decline of over 300,000 metric tonnes,” ‘AFEX Wet Season Crop Production Report for 2023’ reported.

Also, insecurity in the Northwest, which accounts for 72 percent of total rice production in Nigeria, has prevented farmers from cultivating their farmlands.