The price of a 50kg bag of rice has dropped to around N58,000 in parts of Nigeria, especially in remote and border areas, following an influx of rice imports from the Republic of Benin. This was revealed in a new report by S&P Global.
The West African parboiled rice market has hit a near two-year low after India removed export duties on parboiled rice. As a result, large quantities of cheaper Indian rice have been shipped into West Africa, filling warehouses in Benin Republic and spilling into Nigeria’s markets.
Between September and December 2025, India exported about 2.11 million metric tonnes of parboiled rice to West Africa, compared to 720,000 metric tonnes in the same period of 2023. For the full year 2024, India shipped 5.35 million metric tonnes, up from 3.9 million in 2023, according to the Agricultural and Processed Food Products Export Development Authority.
Traders say the market remains quiet despite the price drop, as buyers wait for prices to stabilize. Local rice prices have also fallen, with 50kg bags now selling for about N60,000, down from N80,000 or N90,000 previously.
In border towns in Ogun State, the price of rice has dropped even further, selling below N50,000 due to their proximity to Benin. Despite the official ban on rice imports, rice remains the most smuggled product into Nigeria, with customs officials struggling to contain the illegal trade.
Market observers predict that demand may pick up later in the year as the Christmas season approaches.