Rice prices plunge in Lagos, traders hurt
Rice costs have fallen sharply across Lagos markets, with 50-kilogram bags that reached 85,000 naira in January now selling for as little as 60,000 naira, relieving shoppers but squeezing merchants who face steep losses. Foreign varieties dropped from 95,000 to between 65,000 and 75,000 naira while local brands settled between 60,000 and 70,000 naira at trading centers in Oyingbo, Oshodi, Festac Town and Mile 12. Dealers say the August decline followed stronger harvests in northern regions and the reopening of borders, which increased imports from neighboring nations.
Traders report selling inventory purchased at peak rates for far less than acquisition costs, with one merchant at Arena Market explaining she bought bags at 80,000 naira but must offload them at 65,000. Business leaders want government support for farmers and distribution networks to stabilize pricing rather than endure volatile swings that prevent planning. Statistics bureau data showed food inflation retreating by 5 percentage points in September, after headline rates had dropped for six straight months.
Some analysts warn the relief may prove temporary as market conditions remain unstable heading toward the December holidays when demand traditionally climbs.
