Economists explain why rice price drop sparks mixed reactions among Nigerians, traders

The Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, and the Executive Officer of SD & D Capital Management disclosed this in an interview with SOCIETY WATCH.

This comes as a report emerged at the weekend that the price of a 50-kilogramme bag of rice has dropped to between N55,000 and N75,000, down from N85,000 sold in early 2025.

The price drop was reported in major markets such as Mile 12 and Oyingbo in the country’s commercial nerve centre, Lagos State.

In Abuja, Dutse, and Kubwa markets, a 50 kg bag of rice is sold at between N65,000 and N85,000 depending on the brand.

reports that the prices of other food items such as yams, beans, onions, tomatoes, and other food items have decreased.

Data from the National Bureau of Statistics showed that headline and food inflation dropped to 18.02 per cent and 16.87 per cent in September 2025, down from 20.12 per cent and 21.87 per cent in August.

While the drop in the price of rice excites Nigerians, traders have lamented the negative impact on their investments due to declining profit margins.

FG should create fair balance for Nigerians, traders – CPPE on rice price drop

SOCIETY WATCH Reacting, Yusuf said the government needs to create a balance through requisite incentives for businesses to avoid collapse.

“It is due to conflict of interest. Nigerians want cheaper rice, while business owners want higher profit margins.

However, the federal government has to create the balance. The rice and other staple food import waiver policy was a stopgap measure which ended in December 2024. The government needs to be consistent with its policy to ensure that the price of rice remains affordable for the masses.

“Similarly, the government needs to support traders to boost their capacity in local production. There’s a need for a fair balance between government policy to bring the price of food down and the sustainability of businesses in Nigeria,” he told SOCIETY WATCH..

On his part, Idakolo said the decrease in the price of rice showed that the import waiver on food items policy has started to yield results.

“The drop in the price of a bag of rice and other staple foods across the country is a testament that some of the policies of the government are now impacting Nigerians positively.