Africa (Commonwealth Union) _Despite a government-introduced tax waiver aimed at curbing food inflation, the cost of rice in Nigeria continues to climb, leaving stakeholders and consumers frustrated. The Federal Government’s temporary removal of import duties and VAT on essential food items, including rice, millet, and beans, was intended to alleviate economic pressures. Yet, instead of seeing relief, Nigerians are grappling with ever-increasing prices.
Stakeholders in the rice industry believe that middlemen and a lack of direct engagement with local farmers are hindering the waiver’s impact. Raphael Hunsa, Chairman of the Rice Farmers Association of Nigeria (RIFAN) in Lagos, criticized the over-reliance on imports and licenses granted to profit-driven importers. He stressed that supporting local rice farmers would lead to sustainability and affordability. According to Hunsa, empowering Nigerian farmers to cultivate and harvest regularly would not only stabilize the market but also reduce dependency on foreign rice suppliers.
Agricultural expert Akin Alabi echoed these sentiments, emphasizing the need for actionable enforcement of the tax waiver at national borders. He argued that without proper monitoring, the government’s policy risks remaining ineffective. Alabi cautioned that the absence of immediate action could lead to a further increase in rice prices during the festive season, further burdening already struggling households.
In Lagos markets, traders and consumers have observed sharp price increases. John Nwabueze, a rice trader, reported that a 50kg bag of long-grain rice now sells for as much as N120,000, compared to N80,000 two months ago. This alarming trend has left many Nigerians questioning the efficacy of the tax waiver. Ada Okoli, a consumer, called on the government to take decisive action, especially as families prepare for the yuletide season.
A broader economic crisis, characterized by rising living costs and diminishing purchasing power, exacerbates the challenges. Stakeholders are urging the government to address inefficiencies in the supply chain and partner directly with local farmers. They also advocate for stricter price regulation and measures to prevent exploitation by middlemen.
As Nigeria faces mounting food insecurity, the path forward requires a comprehensive approach that prioritizes local production, enforces policies, and ensures fairness in the market. Without urgent reforms, the rising cost of rice may further deepen the economic struggles of millions of Nigerians.
