A report by S&P Global has revealed that the price of a 50kg bag of rice has reduced significantly to N58,000 in parts of Nigeria, following an influx of imported rice through the Republic of Benin.
The report noted that the West African parboiled rice market has slumped to near two-year lows after India scrapped export duties on parboiled rice which lead to a surge in exports to West Africa. According to S&P Global Commodity Insights, warehouses in Benin are currently overflowing with cheaper rice from India with local traders confirming the dramatic shift in supply and pricing.
Data from the Agricultural and Processed Food Products Export Development Authority showed that India exported 5.35 million metric tonnes of parboiled rice to West Africa in 2024, a sharp increase from 3.9 million metric tonnes in 2023. Between September and December alone, about 2.11 million metric tonnes were shipped—nearly tripling the figures from the same period a year earlier.
Market watchers report that the price of local rice in Nigeria has also declined sharply, dropping from around N90,000 to N60,000 per 50kg bag while the price of Indian-imported rice has fallen to N80,000. Despite the significant drop, consumer demand remains steady as buyers await further price stabilization.
Sources noted that in border communities, especially in Ogun State, rice is selling for as low as N50,000 due to easy access from Benin. Although the federal government maintains a ban on rice imports, smuggling remains rampant—putting pressure on the Nigerian Customs Service to combat the flow.
Nigeria continues to serve as the primary destination for rice entering West Africa via unofficial channels.
