Yuletide: Price Of Rice May Crash After Seme, Other Border’s Reopening

Indications have emerged that the price of rice – both foreign and domestic may likely crash this yuletide after Nigerian Government announced reopening of four closed borders.

Although restriction on rice is still in force, there is indications that rice already imported and locked at the borders may likely flood the market this Christmas season.

BIGPENNGR.COM understands the earlier partial closure of the Nigeria-Benin border, is a follow up to the Federal Government policy to completely shut out the importation of food items. 

Rice, among others are part of the 41 items that were marked by the Central Bank of Nigeria (CBN) not be granted access to FOREX.

The moves was to part of the Federal Government policy to drive down import bill due to the depleting foreign reserves.  

Buhari had said that the closure of the Nigeria-Benin border was to restrict the massive illegal importation of rice into Nigeria.  

In one of the statement issued by the Special Adviser to the President on Media and Publicity, Mr. Femi Adesina, Buhari said the massive illegal importation of rice across the Nigeria-Benin border was threatening his administration’s food sufficiency policy.  

But on Wednesday, following a recommendation of a presidential committee, President Muhammadu Buhari approved the reopening of Seme and three other land borders with immediate effect, prompting indications that foreign rice that were locked at the borders following the border closure may likely floor the market this yuletide.

The Minister of Finance Budget and National Planning, Zainab Ahmed, announced the gradual reopening of the borders after the 28th virtual meeting, which the President attended from Daura, Katsina.

According to Ahmed, restriction on the importation of some commodities, like rice and other products, would however continue.

The borders opened for now include Seme and Mfun borders in the Southwest, Ilela and Maigatari borders in the Northwest.

According to report, the 50kg bag of the Royal Stallion rice currently goes for about 29,500 naira to 31,000 naira, the 25kg bag goes for about 14,500 naira to 15,500 naira and the 10kg Rice for about 5,000 naira to 6,000 naira.

Reports say, the 50kg bag of Caprice can be purchased for about 29,000 naira to 31,000 naira while the 25kg bag can be purchased for about 14,500 naira to 15,500 naira.

Industry source said that most imported rice that were stuck at the borders will find their way into the country this period, thus forcing a price crash this yuletide.