A recent report reveals that rice consumption in Nigeria has been steadily increasing, resulting in an annual supply gap of about two million metric tonnes. This surge has driven a significant 37% increase in rice prices in 2023, as outlined in the ‘AFEX Wet Season Crop Production Report for 2023.’
Despite the country’s potential to be a net rice exporter, Nigeria has spent over $15 billion in the past decade to meet its growing rice demand. The global rice market has experienced its highest prices in nearly 12 years in 2023, attributed to India’s ban on rice exports and potential El Nino impacts on production in key regions.
The report also notes that rice prices in Nigeria surged due to reduced production in 2022 caused by flooding during the wet season. International market dynamics, rain-induced disruptions, and variations in quality during Vietnam’s summer-autumn harvest have further contributed to the price increase.
The firm expects a 4% increase in rice production and predicts a further 32% rise in the price of paddy rice. Notably, the production of milled paddy rice has seen a remarkable increase of over 35% in the country, reaching an estimated output of 5.4 million metric tonnes in 2022, up from 3.9 million metric tonnes in 2015. While rice cultivation spans all of Nigeria’s agro-ecological zones, the Northwest region dominates, contributing 72% to the total rice production in the country.