Why Is Rice So Expensive in Nigeria Now?
For millions of Nigerians, rice is more than just a side dish — it’s a daily essential that appears on tables across the country.
From family dinners to festive celebrations, rice is a constant presence in homes both urban and rural. But in 2025, many Nigerians are asking a troubling question: “Why is rice so expensive in Nigeria now?”
As food prices continue to rise nationwide, the average Nigerian household is feeling the pinch more than ever.
Basic staples like rice are becoming harder to afford, sparking concern and frustration among consumers.
Shoppers at local markets and supermarkets alike are beginning to track the current price of rice in Nigeria 2025, trying to understand what’s behind the sharp increases.
So, why food prices are rising in Nigeria, and is there any relief in sight? Let’s explore the factors driving this growing food crisis.
5 Reasons Why Rice is So Expensive in Nigeria Right Now
1. Import Dependence & Foreign Exchange Crisis
Despite efforts to boost local production, rice importation in Nigeria remains a major contributor to the country’s food supply.
A large portion of the rice consumed daily in Nigerian homes still comes from foreign countries like Thailand, India, and China.
This heavy reliance on imported rice exposes Nigeria to global market forces — and, more critically, to the unstable value of the naira.
Over the past few years, the dollar to naira rate effect on rice has become glaring. When the naira weakens against the U.S. dollar, the cost of importing rice increases dramatically.
For instance, in 2023, the exchange rate hovered around $1 = ₦750, but by 2025, that rate had worsened to approximately $1 = ₦1,500.
That means importers now need almost twice the amount of naira to buy the same quantity of rice from abroad.
These increased importation costs are passed directly to consumers. So, when you wonder why the cost of a 50kg bag of rice keeps rising, the volatile foreign exchange market plays a major role.
As long as Nigeria depends on rice imports and the naira remains weak, rice prices will likely stay high — or even increase further.
2. Local Rice Production Challenges
While Nigeria has made efforts to encourage homegrown food production, local rice production in Nigeria still faces several setbacks that limit its growth and reliability.
One of the major barriers is poor infrastructure — many rice farmers struggle with inadequate irrigation systems, outdated farming techniques, and lack of access to quality seeds and fertilizers.
In addition to these technical issues, insecurity remains a serious threat. Several rice-producing regions, especially in the northern parts of the country, have seen a rise in violence, kidnappings, and clashes that have driven many farmers away from their lands.
As a result, challenges facing rice farmers in Nigeria now include not only environmental concerns but also personal safety and security.
Flooding has also become more frequent, wiping out entire farmlands and further deepening the rice farming crisis 2025.
Poor storage facilities lead to post-harvest losses, meaning even the rice that does get harvested is sometimes wasted due to lack of preservation.
Without stronger government support, access to funding, and investments in modern farming solutions, local rice production will continue to lag behind demand. This shortage contributes significantly to the high cost of rice in Nigerian markets today.
3. High Cost of Transportation
Another major factor behind the soaring price of rice in Nigeria is the rising cost of transportation.
In 2025, the fuel price in Nigeria has reached unprecedented levels, with diesel and petrol becoming more expensive due to subsidy removal and global oil market instability.
Transporting goods — including food staples like rice — from farms or ports to markets now comes with significantly higher costs.
Fuel scarcity and fluctuating pump prices mean that trucks and trailers that move rice across the country are operating at higher expenses.
Additionally, the poor state of Nigerian roads adds to the challenge. Bad roads cause frequent vehicle breakdowns, delays, and higher maintenance costs — all of which are passed on to consumers.
This chain reaction shows the effect of transportation on rice price clearly: as logistics costs rise, market prices climb too.
Whether it’s imported rice arriving through ports or local rice from northern farms, transportation expenses play a huge role in the final price Nigerians pay per bag.
4. Hoarding and Price Manipulation
Beyond production and import challenges, another critical factor contributing to the rising cost of rice in Nigeria is the role of hoarding and price manipulation.
Some traders deliberately hold back large quantities of rice from the market to create an artificial scarcity.
This practice, known as food hoarding in Nigeria, is a tactic used to drive up prices and maximize profit — often at the expense of everyday Nigerians.
Middlemen are also central to this problem. Rather than allowing a direct supply from farmers or importers to consumers, these intermediaries inflate prices along the supply chain, contributing significantly to rice price inflation across the country.
Due to these manipulative practices, rice prices can vary greatly from one state to another. For instance, a 50kg bag might sell for ₦55,000 in a northern state but rise to over ₦65,000 in some parts of the South.
Without effective price control in Nigeria, such disparities persist, leaving the most vulnerable consumers struggling to afford basic food items.
Until stricter regulations and enforcement are in place, hoarding and manipulation will continue to worsen the nation’s food inflation crisis.
5. Weak Government Policies and Inconsistent Regulation
Government intervention in Nigeria’s rice market has been marked by inconsistency, poor execution, and mixed results.
Over the years, several policies have been introduced to boost local production and reduce dependence on imports, but many of these efforts have fallen short.
One example is the Central Bank of Nigeria’s CBN rice policy, which aimed to encourage local farming through programs like the Anchor Borrowers’ Program.
While the initiative provided loans and support to farmers, widespread reports of mismanagement and lack of proper follow-up meant that many beneficiaries did not deliver the expected output.
Similarly, government actions such as the rice ban in Nigeria, including border closures and tight restrictions on imports, were meant to protect local producers.
However, these moves were often implemented without adequate preparation or support systems. The result was a disruption in supply chains, creating shortages that pushed prices even higher.
Another critical issue is the rice subsidy failure. Subsidies intended to reduce the cost of inputs like fertilizer, seeds, and equipment rarely reached the farmers who needed them most. Corruption, bureaucracy, and weak monitoring made it easy for funds and resources to be diverted or misused.
Ultimately, without strong enforcement, transparency, and long-term commitment, these policies do little to stabilize the rice market.
Until Nigeria adopts a more coherent and accountable agricultural policy framework, the high cost of rice will remain a persistent burden for consumers.
Bonus: Rice Price Trends and Current Market Overview in Nigeria
Current Prices of 50kg Bag of Rice (As of May 2025)
The cost of rice continues to climb in Nigeria, with sharp differences in pricing across states. Here’s a breakdown of the average price of a 50kg bag of rice in major cities:
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Lagos: ₦85,000 – ₦90,500
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Abuja: ₦90,000 – ₦95,000
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Ibadan: ₦85,000 – ₦95,500
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Port Harcourt: ₦85,500 – ₦95,500
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Kano: ₦85,850
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Gombe: ₦85,600
These prices reflect both foreign and locally produced rice, with the former generally being more expensive due to exchange rate fluctuations and import duties.
Rice Price Movement: 2023 to 2025
Over the last three years, rice prices in Nigeria have shown a consistent upward trend. Below is a general estimate of how much the price of a 50kg bag has changed:
| Year | Estimated Average Price (₦) |
|---|---|
| 2023 | ₦40,000 – ₦50,000 |
| 2024 | ₦70,000 – ₦85,000 |
| 2025 | ₦85,000 – ₦95,000 |
Why Are Prices Rising?
Several key issues are fueling this continuous price hike:
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Import Reliance: The country still depends heavily on imported rice, and any shift in the dollar-to-naira rate quickly drives up costs.
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Production Bottlenecks: Farmers face challenges such as flooding, poor storage, lack of irrigation, and insecurity, especially in northern states.
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Rising Fuel Prices: High diesel and petrol costs increase transport expenses, affecting final retail prices.
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Market Manipulation: Some distributors intentionally hoard rice to create scarcity and sell at inflated rates.
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Policy Failures: Inconsistent government programs and weak implementation of policies, like rice subsidies, have not delivered the needed impact.
These factors combined have made rice—once an affordable staple—increasingly out of reach for many Nigerian families.
Conclusion: What Can Be Done?
The rising price of rice in Nigeria is more than just numbers—it directly affects the daily lives of millions.
From import dependency to insecurity on farms, from transportation costs to hoarding and weak government policies, the problem is complex, but not unsolvable.
To begin fixing it, there must be renewed efforts to support local rice farmers through funding, training, and better infrastructure. The government also needs to be more consistent and transparent in policy implementation, especially regarding price control and subsidies.
Tackling corruption and improving the efficiency of agricultural programs like the Anchor Borrowers’ Scheme is essential.
Now we’d love to hear from you:
How much did you last buy a 50kg bag of rice for in your area?
Drop your response in the comments — your experience could help paint a clearer picture of the situation across the country.
Together, with awareness and action, we can push for change that makes food more affordable for every Nigerian.
