The price of a 50kg bag of rice has fallen to N58,000 in some parts of Nigeria, especially in remote areas, following an influx of rice imports through the Republic of Benin, according to a report by S&P Global.
The report noted that the West African parboiled rice market has dropped to its lowest level in nearly two years, as supplies have flooded the region after India removed export duties on parboiled rice.
Driven by this influx, the price of a 50kg bag of rice in Nigeria has declined sharply from N80,000 to N58,000. Much of the supply comes through neighbouring Benin, where warehouses are reportedly filled to capacity with cheaper Indian rice, according to market participants cited by Platts, a division of S&P Global Commodity Insights.
Between September and December 2024, India exported approximately 2.11 million metric tonnes of parboiled rice to West Africa, a significant jump from 720,000 metric tonnes during the same period in 2023. Over the course of 2024, total exports of parboiled rice from India to West Africa reached 5.35 million metric tonnes, up from 3.9 million metric tonnes the previous year, according to the Agricultural and Processed Food Products Export Development Authority.
A trader based in Togo described the regional market as “quiet and bearish,” reflecting subdued activity across West Africa.
In Nigeria, the largest rice market for Benin, the influx of smuggled rice has pushed prices down further over the past two weeks. Local rice prices have dropped from N80,000–N90,000 to about N60,000 per 50kg bag, while imported Indian rice now sells for around N80,000.
Despite the decline in prices, demand has not picked up significantly. “Buyers are cautious, waiting for prices to stabilise before making bulk purchases,” the report said.
A trader in Benin predicted that demand might only begin to rise closer to the Christmas season, around September.
Our correspondent also observed that Nigeria remains the largest consumer of rice imported through Benin. In border communities in Ogun State, rice prices have fallen even further, with 50kg bags selling for less than N50,000 due to their proximity to Benin.
Despite Nigeria’s ban on rice imports, the commodity remains the most smuggled product into the country, posing an ongoing challenge for the Nigerian Customs Service, which continues to battle rice smugglers.
