Following the end of the import duty waiver announced by the Nigerian government on essential food items, including rice, dealers have hiked the commodity’s price.

A market survey conducted by Legit.ng shows that the price of rice has increased by over N10,000 for a 50kg bag.

Importers blame the end of the import waiver

According to a dealer in the Ogba area of Lagos, Uzoma Egbe, the price of the staple rose by N10,000 per 50kg late last week.

“Last week, we sold a 50kg bag for N57,000, and today, we received information that the same quantity has added N10,000,” Egbe told Legit.ng.

He cited the end of the 150-day import duty-free window introduced by the Nigerian government for the price rise. He disclosed that foreign exchange pressure is also responsible, as most importers find it challenging to source FX to import the product.

“One of my suppliers said he has not placed orders since June because of high forex. He said it is difficult to secure FX from official sources except from the black market, which is more expensive,” Egbe said.

50kg bag to hit N80,000, importers predict

Felix Ike, another importer, said that the price of a 50kg bag may hit N80,000 in two weeks, stating supplies are low.

“Thailand and India are cutting back on exports, which is affecting our supplies. This is the reason for the sudden price hike,” he said.

Legit.ng reported that the Nigerian foreign exchange market is experiencing renewed volatility, with the naira depreciating for most of last week before rising against the dollar on Friday, June 19, 2025.

At the close of trading on Friday, the local currency appreciated to N1,547 to a dollar, from N1,551.

Also, the Central Bank of Nigeria (CBN) pegged the Customs foreign exchange rate for duty clearance at N1,548, slightly higher than the official rate.

The end of low rice prices

Rice price stabilised for most of May and June as importers flooded the market with grains from Thailand and India, which lifted export restrictions on its grains recently.

The surge from two of the world’s highest producers crashed the commodity’s price in Nigeria.

However, the sudden rise in prices has thrown importers, retailers, and consumers off balance following the end of the import waiver.

Also, pressure from local farmers may have contributed to the end of the policy by the Nigerian government.

Rice prices to change as Nigeria faces N1.43trn shortage

Legit.ng earlier reported that there is fear that Nigeria may experience a 2.18 million tonnes of rice shortage valued at N1.43 trillion due to low production.

As of February 20, 2025, parboiled sold for N679.500 per tonne in Thailand, leading to about N33,000 per 50kg bag.

Milled rice production in Nigeria is reportedly projected to drop from 5.60 million to 5.22 million in the 2024.2025 season. Paddy rice is projected to decline to 8.30 million tonnes from 8.90 million in the season.