Rice Prices Drop to ₦58,000 in Nigeria Amid Benin Imports – S&P Global
By Dare Olawin | IDNN Business Desk | April 28, 2025
LAGOS, NIGERIA — The price of a 50kg bag of rice has dropped to ₦58,000 in some parts of Nigeria, particularly around border and remote areas, according to a report by S&P Global.
The sharp decline, from previous highs of ₦80,000 to ₦90,000, is attributed to a flood of cheaper Indian rice imports entering Nigeria through the Republic of Benin, despite Nigeria’s official ban on rice importation.
🌾 How the Market Shifted
The West African parboiled rice market has slumped to a near two-year low, after India lifted export duties on parboiled rice, unleashing millions of tonnes onto regional markets.
According to Platts, part of S&P Global Commodity Insights:
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India exported 2.11 million metric tonnes of parboiled rice to West Africa between September–December 2024, compared to 720,000 metric tonnes during the same period in 2023.
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Total Indian parboiled rice exports to West Africa for 2024 stood at 5.35 million metric tonnes, up from 3.9 million metric tonnes the previous year.
Warehouses in Benin Republic are reportedly at full capacity, with Nigerian demand serving as the main offloading channel.
📉 Nigeria’s Rice Price Trends
As of late April:
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A 50kg bag of local Nigerian rice has dropped to ₦60,000, down from ₦80,000–₦90,000.
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In border areas such as Ogun State, the price of imported rice has fallen below ₦50,000 due to proximity to Benin supply routes.
However, despite the price declines, consumer demand has not risen sharply.
“Buyers are adopting a cautious approach, waiting for price stabilisation before making large purchases,” the S&P Global report noted.
🚧 Ongoing Battle Against Smuggling
Nigeria’s Customs Service continues its struggle to curb illegal rice smuggling across porous borders. Rice remains the most smuggled commodity into the country despite stringent bans.
S&P’s report suggests that Christmas season demand later in the year could revive bulk buying activity, but the market remains quiet and bearish for now.
🏛️ Bottom Line
The ongoing influx of cheaper rice from India into West African ports—and subsequently into Nigeria—is reshaping the rice market landscape, challenging local producers, and exposing gaps in Nigeria’s import control mechanisms.
If the current trends persist, analysts warn that local rice farming could suffer major setbacks, just as Nigerians temporarily benefit from lower food prices.
