Rice Prices Plunge in Lagos Markets Amid Surge in Supply

Rice prices in Lagos markets have experienced a significant crash following a surge in supply, bringing much-needed relief to consumers while sparking concerns over trader profitability and business sustainability. Currently, a 50kg bag of rice sells for between ₦55,000 and ₦70,000 depending on the brand and market location, a sharp drop from prices earlier this year ​.

Markets such as Oyingbo, Arena (Oshodi), Festac Town, and Mile 12 have witnessed local rice prices fall from about ₦85,000 in January to now between ₦60,000 and ₦70,000 per 50kg bag. Imported rice, which earlier traded around ₦95,000, has dropped to between ₦65,000 and ₦75,000 ​.

Traders express distress over the sudden price collapse. Mrs. Precious Okoro of Arena Market lamented losing sales revenue, saying, “We bought bags at ₦80,000 to ₦85,000 earlier but now must sell at ₦65,000 or less, often at a loss.” Similar sentiments were echoed by other vendors who say their capital investment is tied up, restricting restocking ability ​.

The price drop is mainly attributed to the combination of improved local harvests in key rice-producing northern states and increased imports following the reopening of land borders with neighboring rice-exporting countries. This influx has flooded the market, temporarily driving down prices ​. A rice farmer, speaking anonymously, warned the current low prices may not last, forecasting possible price surges before December due to market instability and fluctuating supply ​.

Consumers have welcomed the price relief amid the broader economic challenges. Mrs. Andriana Okoromaro noted the decrease helps ease the burden of the rising costs of other food items. Another consumer expressed hope that prices remain stable through the festive season, enabling families to celebrate without financial strain ​.

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Experts and traders alike call on the government to stabilize the rice market through sustained support for local farmers, infrastructure improvement, and incentives to boost production and distribution efficiency. Price stability is crucial not only for consumer affordability but also for traders’ business planning and profitability ​.

In summary, Lagos rice markets are currently benefiting from a supply glut that has pushed prices down to levels unseen since early 2025. However, the situation is a mixed blessing—consumers gain rice affordability while traders face financial strain. The challenge ahead lies in ensuring sustainable production and a balanced market to prevent future volatility.

This development highlights the complex interplay of local agriculture, import policies, and market responses in Nigeria’s vital food sector ​.