Economists and financial analysts have attributed the mixed reactions that followed the recent drop in rice prices across Nigeria to a conflict of interest between consumers and traders.

The Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Muda Yusuf, and the Executive Officer of SD & D Capital Management, Idakolo Gbolade, stated that while consumers welcome the lower prices, many traders are worried about declining profits.

Recent reports indicate that the price of a 50-kilogram bag of rice has fallen to between ₦55,000 and ₦75,000, compared to about ₦85,000 in early 2025. The price reduction was recorded in major markets such as Mile 12 and Oyingbo in Lagos. In Abuja’s Dutse and Kubwa markets, the same bag now sells between ₦65,000 and ₦85,000, depending on the brand.

Prices of other food items such as yam, beans, onions, and tomatoes have also seen noticeable reductions. According to data from the National Bureau of Statistics, headline inflation dropped to 18.02 percent in September 2025 from 20.12 percent in August, while food inflation declined from 21.87 percent to 16.87 percent within the same period.

While consumers celebrate the lower cost of rice, many traders have expressed concern over shrinking profit margins, which they say are threatening their businesses.

FG Should Create a Fair Balance Between Consumers and Traders – CPPE

Yusuf emphasized the need for government intervention to maintain a fair balance that protects both consumers and businesses.

“It’s a matter of conflicting interests — Nigerians desire cheaper rice, but traders want to maintain profitability. The government must strike a balance through consistent policies and incentives that support local production while keeping food prices affordable,” he said.

He added that the government’s rice and staple food import waiver, which expired in December 2024, had served as a temporary relief measure. However, he urged policymakers to sustain such interventions to stabilize food prices and prevent the collapse of small and medium-scale businesses.

Policy Results Reflecting in Rice Price Reduction – Analysts

Idakolo noted that the reduction in rice prices reflects the positive impact of the government’s food import waiver and other economic policies.

“The recent drop in the prices of rice and other food items indicates that some of the government’s strategies are beginning to yield results. Despite the initial challenges of subsidy removal and exchange rate deregulation, the administration has, over time, managed to stabilize the economy through targeted policies,” he said.

Background: Food Import Waiver Policy

In 2024, the federal government introduced a temporary import duty waiver on key food items as part of efforts to curb rising prices. However, local farmers have raised concerns over the policy’s effect on domestic food production and its potential to discourage local agriculture.