Abuja Witnesses 19% Drop in Rice Price Amid Rising Inflation

The price of a 50-kilogram bag of locally parboiled rice has seen a significant decrease of 19% in Abuja, Nigeria, despite the backdrop of rising food inflation.

As of April, the price of a 50kg bag of rice, including popular brands such as Big Bull and Optimum, has dropped to N68,000 from a previous high of N84,000 in February.

This development has caught the attention of consumers and market analysts alike, as it comes at a time when the nation is grappling with soaring food inflation rates, which reached 40.01% in March.

Traders in the Dutse and Kubwa markets confirmed the price drop, with some attributing the decrease to a marginal reduction in the cost of locally produced rice.

However, foreign rice varieties such as Mama Gold and Royal Stallion remain expensive, with a 50kg bag priced at N90,000.

Despite the decrease in the price of local rice, customers still find the cost relatively high, and the availability of foreign rice remains limited due to its high cost and the practice of rebagging.

The situation has left many Nigerians questioning the impact of the recent appreciation of the Naira in the foreign exchange market on the prices of goods and services.

Dr Ayo Teriba, the Chief Executive of Economic Associates, has suggested that the effects of the Naira’s appreciation may take three to six months to be felt in the market.

As the Nigerian economy grapples with rising inflation and a fluctuating currency, the recent drop in rice prices in Abuja offers a glimmer of hope for consumers.

However, the sustainability of this trend remains to be seen, and its potential impact on the broader economy is still uncertain.