Economists and financial analysts have attributed the recent drop in rice prices to conflicting interests between consumers and traders. While Nigerians are celebrating the affordability of rice, traders lament the decline in profit margins, which they say negatively affects their businesses. This was highlighted by Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), and Idakolo, Executive Officer of SD & D Capital Management, in interviews with DAILY POST.
The price of a 50-kilogramme bag of rice has fallen to between ₦55,000 and ₦75,000, down from ₦85,000 earlier in 2025. Major markets such as Mile 12 and Oyingbo in Lagos recorded the drop, while in Abuja markets like Dutse and Kubwa, prices range from ₦65,000 to ₦85,000 depending on the rice brand. Prices of other staple foods, including yams, beans, onions, and tomatoes, have also decreased. Data from the National Bureau of Statistics showed that headline inflation dropped to 18.02% and food inflation to 16.87% in September 2025.
Yusuf explained that the situation reflects a conflict of interest: “Nigerians want cheaper rice, while business owners want higher profit margins. The federal government needs to balance these interests through policies and incentives to prevent businesses from collapsing.” He also emphasized the need for continued support for local production to ensure sustainability while keeping food prices affordable.
Idakolo added that the food import duty waiver policy introduced by the federal government has contributed to the price drop. “The decrease in rice and other staple foods shows that government policies are beginning to positively impact Nigerians. Despite early challenges like fuel subsidy removal and exchange rate adjustments, President Tinubu’s administration has stabilized the economy through targeted measures,” he said.
Meanwhile, local farmers expressed concerns that the price drop may hurt indigenous food production, highlighting the importance of balancing imported food affordability with support for local agriculture. Experts insist that the government must ensure policies protect both consumers and traders while promoting long-term food security in Nigeria.
