In the latest news affecting food prices in Nigeria, the cost of a 50kg bag of rice has dropped significantly to an average of N54,000 due to widespread rumours of deadly rice and an oversupply of imports from India.

Price Drop Linked to Panic and Oversupply

According to a recent report by S&P Global, the price of rice dropped from N58,000 in April to N54,000 by mid-May. This sudden decline was caused by two major factors: health fears and market saturation.

Rumours circulated via WhatsApp and voice notes, claiming that over 70 people died after consuming contaminated rice purchased in Badagry, Lagos State, and Idiroko, Ogun State. Although the Nigeria Customs Service in Seme dismissed the rumours as false, consumer confidence dropped sharply, triggering a decline in demand.

READ ALSO: Dangote Refinery Reduces Petrol Price to ₦825/Litre Amid Intensifying Market Competition

PAY ATTENTION: Follow us on Instagram for top headlines in your favorite app 

Massive Importation from India Intensifies Drop

S&P Global also attributed the fall in price to a wave of Indian rice imports flooding West African markets. Data from India’s Agricultural and Processed Food Products Export Development Authority showed that around 4.9 million metric tonnes of rice were exported to West Africa between April 2024 and January 2025.

Benin Republic received the largest share, followed by Guinea and Ivory Coast. As Nigeria remains Benin’s biggest rice market through illegal imports, this oversupply has affected both local and imported rice prices in Nigeria.

Market Reactions and Regional Trends

In border communities like Badagry, rice now sells for as low as N50,000 per 50kg bag. Traders in the area, desperate to revive sales, released videos to debunk the deadly rice rumour, insisting that no deaths were recorded from consuming rice.

Importers in Togo are also feeling the pinch. With demand for white rice virtually nonexistent, freight rates for containers and breakbulk have narrowed significantly, now differing by just $3 to $4 per metric tonne. This shift makes container shipping more attractive for smaller volumes.

Local Rice Prices Also Declining

Another market participant revealed that even locally produced rice has dropped by N10,000 in the past two weeks, bringing the average price down to N62,000 per 50kg bag. This marks a rare simultaneous drop in both imported and domestic rice prices in Nigeria.

Tags: latest news, rice prices, Nigeria food market, rice oversupply, Badagry rice death rumour, Indian rice import, local rice prices