In border towns in Ogun State, the staple reportedly sells for even less, dropping below ₦50,000 due to the ease of cross-border smuggling. Despite the steep price decline, demand has not picked up.
The price of a 50kg bag of rice has dropped to ₦58,000 in parts of Nigeria following a surge of imports through Benin Republic, according to S&P Global. India’s removal of export duties on parboiled rice triggered the influx, with West African markets now at near two-year lows. Platts reports Benin’s warehouses are “filled to capacity” with Indian rice, as regional imports tripled to 2.11 million metric tonnes between September-December 2024.
The price slump has created a “quiet and bearish” market across West Africa, according to a Togo-based trader. While consumers benefit from cheaper rice, the flood of imports threatens local producers and raises questions about long-term market stability in Nigeria’s agricultural sector.