Rice Price Crisis in Nigeria: Farmers’ Leaders Blame Cartels and Middlemen for Soaring Costs
The relentless surge in the price of rice across Nigeria is being fueled by a complex web of manipulation, including unscrupulous farmers, profit-driven middlemen, and a powerful cartel deliberately creating artificial scarcity, according to leaders of the nation’s rice farmers’ associations.
In exclusive interviews, these agricultural stakeholders painted a troubling picture of a market in distress, where government interventions are being systematically undermined. They argue that despite official efforts to stabilize supply and reduce costs for consumers, human greed and coordinated market manipulation are keeping prices prohibitively high for millions of Nigerians.
The Cartel Conundrum: Undermining Government Efforts
Mr. Sakin Agbayewa, Vice-Chairman of the All Farmers Association of Nigeria (AFAN), provided a stark analysis of the situation. He described a pattern of economic sabotage that has left consumers bearing the brunt of inflated prices despite periods of improved supply.
“As regards the high price of rice, I think we are taking one step forward and five steps backward,” Agbayewa stated. “Some few months ago, the Federal Government came out with a waiver, giving some companies a small waiver to import rice into the country in order to crush the price. And while that was on, did they mobilise the local farmers? That is where the issue lies.”
According to Agbayewa, this import waiver initially succeeded in driving down prices temporarily. However, he alleges that during this period of increased imports, certain actors were simultaneously warehousing substantial quantities of rice. Once the waiver period concluded, these stored supplies were strategically released into the market, creating artificial scarcity and enabling massive price hikes.
Deceptive Practices and False Packaging
Perhaps even more disturbing are the reports of deceptive repackaging schemes. Agbayewa revealed that some dishonest operators within the domestic supply chain are capitalizing on Nigerians’ perceived preference for imported rice by engaging in fraudulent repackaging practices.
“Some farmers only capitalise on the shortage in the system,” he explained. “And with the shortage, they are now repacking local rice in foreign bags for selfish reasons. They do this to sell at high cost because they know Nigerians have this high taste for foreign things.”
This practice not only artificially inflates prices but also misleads consumers about the actual origin and quality of the product they are purchasing.
The Call for Genuine Farmer-Government Collaboration
Mr. Raphael Hunsa, Chairman of the Rice Farmers Association of Nigeria (RIFAN) in Lagos State, emphasized that sustainable solutions require direct engagement with authentic local farmers rather than intermediaries or special interests.
“The price of rice will continue to go up if the government fails to support local rice farmers,” Hunsa warned. “The price will go higher and higher because cultivation of local rice is quite different from importing rice.”
Hunsa called for a more inclusive approach to policy formulation, urging government officials to consult directly with those who understand the practical challenges of rice cultivation in Nigeria.
“They should invite local rice farmers to a roundtable for formulation of the right policies and programmes for the sector. So, we know our problem, they should ask us and we will tender our problem. It is now left for the government to resolve the problem through the normal channel. And with that, the price of rice will come down.”
Appeal to Farmers Regarding Government Interventions
Hunsa also addressed concerns about the misuse of government support programs, making a direct appeal to fellow rice farmers to utilize rather than sell agricultural inputs provided through official channels.
“We will also use this opportunity to tell our farmers that any input being given to them should not be sold. They should not sell it out. They were given the input for continuity. The continuity is what government is after.”
This statement acknowledges concerns that some assistance intended to boost production may be diverted for short-term gain rather than long-term agricultural development.
Market Realities: Soaring Prices and Consumer Impact
The consequences of these market manipulations are starkly visible in marketplaces across Nigeria. Mr. Mustafa Aliu, a rice dealer at Oja Oba Market in Agege, confirmed the current price range for a 50kg bag of local rice has reached between ₦70,000 and ₦80,000 – a significant increase from just two months ago when the same quantity sold for between ₦45,000 and ₦55,000.
“We can only sell it the way we bought it,” Aliu explained, emphasizing that retailers are themselves caught between suppliers and consumers in this inflationary cycle.
Another trader at Iddo, Mr. Temitayo Hakeem, highlighted how consumer preferences continue to influence market dynamics. “With the high demand for foreign rice, we will continue to witness this rise in the price of rice. There are bags of rice that still sell as high as ₦145,000 or ₦150,000, depending on the choice of the consumer.”
Path Forward: Addressing Systemic Challenges
The revelations from rice farming leaders point to systemic issues that require coordinated solutions. While government interventions like import waivers and input subsidies can provide temporary relief, sustainable price stability appears to depend on addressing deeper structural problems within the agricultural supply chain.
Key challenges include:
Supply Chain Transparency: Creating mechanisms to track rice from farm to market to prevent fraudulent repackaging and artificial scarcity.
Farmer Support Systems: Ensuring that agricultural inputs and support actually reach genuine farmers rather than being diverted or misused.
Market Regulation: Developing stronger oversight to prevent cartels from manipulating prices through coordinated warehousing and release strategies.
Consumer Education: Encouraging appreciation for high-quality local rice varieties to reduce dependence on imported products and vulnerability to repackaging scams.
Conclusion: A Call for Coordinated Action
The current rice price crisis in Nigeria represents more than typical market fluctuations. According to those closest to production, it reflects deliberate manipulation by actors within the agricultural ecosystem who profit from instability and scarcity.
Addressing this challenge will require not only government action but also greater accountability within the farming and distribution sectors themselves. As both Agbayewa and Hunsa emphasized, sustainable solutions must emerge from genuine collaboration between policymakers and authentic agricultural producers – those with real stakes in Nigeria’s food security future.
Until these structural issues are addressed, Nigerian consumers may continue to face volatile and often unaffordable rice prices, despite the country’s significant potential for self-sufficiency in rice production.
Full credit to the original publisher: The Tide – https://www.thetidenewsonline.com/2025/08/18/tinubu-hails-by-election-winners-in-12-states-commends-inec/