Experts Clarify Why Falling Rice Prices Trigger Mixed Reactions Among Consumers and Traders
Story: written by Daniel October 28,2025
Economic specialists have attributed the mixed public response to Nigeria’s recent drop in rice prices to a clash of interests between consumers seeking relief and traders worried about shrinking profits.
Muda Yusuf, Chief Executive of the Centre for the Promotion of Private Enterprise, and Idakolo Gabriel, Executive Officer of SD & D Capital Management, explained the situation in recent media comments.
Reports indicate that the price of a 50 kilogram bag of rice has fallen significantly, currently retailing between N55,000 and N75,000 in key Lagos markets such as Mile 12 and Oyingbo, down from about N85,000 earlier in 2025. In major Abuja markets including Dutse and Kubwa, prices range between N65,000 and N85,000 depending on the brand.
Prices of other staple food items including beans, tomatoes, onions, and yam have also recorded notable declines. According to the National Bureau of Statistics, food inflation dropped to 16.87 percent in September 2025, with headline inflation easing to 18.02 percent, from 21.87 percent and 20.12 percent respectively in August.
While many Nigerians view the reduced prices as a welcome development, traders have expressed concern over reduced earnings and the risk of business collapse.
Yusuf emphasized the need for the federal government to ensure policy consistency and grant adequate support to local producers in order to sustain affordability without undermining business operations. He noted that the temporary food import duty waiver, which expired in December 2024, helped drive down prices but requires a long-term strategy to maintain balance.
According to him, striking equilibrium between consumer welfare and commercial viability is crucial. Nigerian households desire cheaper food, while sellers depend on fair profit margins to remain in business.
Speaking on broader economic effects, Idakolo stated that the price decline reflects positive outcomes from recent government decisions, particularly the temporary import relief granted on key food items.
He acknowledged that economic reforms introduced under President Bola Tinubu, including fuel subsidy removal and exchange rate unification, initially triggered hardship. However, he indicated that some efforts are now yielding tangible benefits in the food supply chain.
Analysts agree that continued government support for local agriculture, stable trade policies, and efficient supply chain management will be necessary to sustain lower food prices while preserving the health of Nigeria’s business environment.
