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Bumper harvest: Operators Predict Rice to Sell for N6,000/Bag



  • Bumper harvest: Operators Predict Rice to Sell for N6,000/Bag

Rice farmers, millers and processors on Wednesday announced that the price of a 50kg bag of the produce would fall to around N6,000 in the next few months.

According to them, the current market price of rice, which is about N15,000 per 50kg bag, will drop to between N6,000 and N7,000 in a couple of months going by the bumper wet season harvest by farmers.

Speaking on the sidelines of a meeting between the rice farmers/processors and the Minister of Agriculture and Rural Development, Chief Audu Ogbeh, at the ministry’s headquarters, in Abuja, the National President, Rice Farmers Association of Nigeria, Mr. Aminu Goronyo, told journalists that the operators had resolved to reduce the price of the commodity to N13,000 per 50kg bag, but stressed that the price would further drop to N6,000 in the coming months.

He said, “This is just the beginning, the actual price of rice will come down because we are expecting a bumper harvest this year. We have sat down with the millers and agreed that we are going to work together in the interest of Nigerians.

“I think you had been buying a bag of rice at the cost of N18,000; but today, the price is between N13,000 and N15,000; meaning that the price is coming down.”

Asked whether the price would crash further as was the case some years back, Goronyo replied, “Of course! Not even N7,000, it will crash to N6,000. Just give us some time; in fact, in the next few months, it will be N6,000 for 50kg.

“You have heard what the minister said earlier. Our major challenge is the cost of production, but the minister has promised to bring down this cost to a very minimal level. I won’t state a particular month, but I can tell you that this will happen in the next few months. The various stakeholders, including the Central Bank of Nigeria, have all agreed to work with us.”

The President, Rice Processors Association of Nigeria, Abubakar Mohammed, stated that operators in the rice value chain were working hard to crash the price of the commodity.

This, he said, prompted the meeting with Ogbeh, as he explained that rice farmers, millers and processors had agreed to cut down the cost of rice paddy, a development that would obviously bring down the market price of the commodity.

Mohammed stated, “We came here to inform the minister about our agreement with farmers on the price of paddy for rice production. This is what brought us here together with the farmers’ association to let the minister know that we have agreed on a price per tonne of paddy for the 2017/2018 wet season harvest.

“The price is N110,000 at the farm per tonne of paddy. Bringing this down in relation to the cost of one bag of rice, as we mentioned it to the minister earlier, a 50kg bag will now drop to between N13,000 and N13,500. This will reduce further in the coming months.

“Before, we used to buy paddy at the rate of N140,000 to N150,000 per tonne, and we sold at about N16,000 per 50kg bag . So, if this works, we hope to sell a bag of rice at between N13,000 and N13,500, according to where you are in the country; and the paddy cost will be N110,000 per tonne.”

Asked whether there were doubts as to the workability of the latest initiative between the private sector players and the Federal Government, Mohammed replied, “No! We have just signed the Memorandum of Understanding. So let the process start and if it works, then it is fine for everybody.”

Earlier in his address during the event proper, Ogbeh assured his guests that the Federal Government would give them the required support, as he noted that it was in the interest of Nigerians and local rice dealers to further cut down on the price of the commodity.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq,, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Inflation and Forex Mismanagement Drive Petrol Truck Prices from N7M to N25M



Petrol Importation -

The Chairman of the Independent Petroleum Marketers Association of Nigeria in the Satellite Depot branch, Akin Akinrinade, has raised an alarm over the rising cost of petrol trucks in Nigeria.

According to Akinrinade, the cost of a petrol truck has surged from N7 million in May to an astonishing N25 million at present, attributed to inflation induced by poorly managed foreign exchange rates.

Akinrinade pointed out that the forex mismanagement has significantly impacted the landing cost of premium motor spirit (PMS), commonly known as petrol, consequently leading to a surge in pump prices.

The unstable business environment, coupled with the astronomical rise in expenses, has created challenges for marketers in the downstream oil sector.

Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), highlighted in October 2023 that foreign exchange challenges have hindered private companies from importing petroleum products.

As a result, the NNPCL has become the exclusive importer of petrol.

The decision to limit private entities from importing fuel comes after President Bola Tinubu’s initiatives aimed at deregulating the fuel market.

Initially, the plan was to allow private companies to import fuel starting June 2023, aligning with efforts to balance the market after removing petrol subsidies.

The ripple effects of the soaring petrol costs are already evident, with commercial transporters increasing fares, and private car owners seeking fuel-saving alternatives.

As Christmas approaches, the surge in demand for interstate travel is expected to further elevate costs, posing financial challenges for many Nigerians amidst stagnant income levels.

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Nigeria’s Presidential CNG Initiative Allocates N100bn for CNG Buses and EV Adoption




The Presidential Compressed Natural Gas (CNG) Initiative has allocated N100 billion to expedite the deployment of CNG buses nationwide, according to a statement released on Wednesday.

The initiative, designed to catalyze an Auto-gas and Electric Vehicle (EV) revolution in mass transit and transportation, aims to enhance sustainability and cost-effectiveness.

The statement revealed that the fund would be instrumental in supporting the adoption of auto-gas and electric vehicles, signaling a commitment to a more sustainable and economical future in the transportation sector.

The Presidential CNG Initiative plans to leverage over 11,500 CNG and electric-fueled vehicles, along with the deployment of 55,000 conversion kits.

This strategic approach is intended to reduce transportation costs for Nigerians and mitigate the challenges posed by the rising cost of living.

Under the Renewed Hope Agenda, the Presidential CNG Initiative is dedicated to realizing the President’s vision, guided by its steering committee led by FIRS Chairman Zacch Adedeji.

The statement highlighted recent achievements, including strategic technical partnerships and the ongoing commissioning of CNG Conversion centers in key states such as Lagos, Abuja, Kaduna, Ogun, and Rivers.

Several more centers are slated for commissioning in the coming weeks, reflecting the initiative’s momentum and commitment to achieving its objectives.

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Nigeria’s Power Transformation: 53 Projects Worth N122bn on Track for May 2024 Completion



power project

The Central Bank of Nigeria (CBN), in collaboration with the Transmission Company of Nigeria (TCN) and power distribution companies, is set to complete 53 power projects by May next year.

Valued at N122 billion, these projects aim to add over 1,000 megawatts to TCN’s wheeling capacity.

During a recent tour of three ongoing projects in Lagos, TCN’s Programme Coordinator, Mathew Ajibade, assured that the projects were not abandoned, refuting speculations.

He confirmed that work is progressing smoothly and is expected to be completed by May 2024, as initially planned.

Assistant Director/Head of Infrastructure Finance Office at the CBN, Tumba Tijani, highlighted the CBN’s support for the power sector, revealing that the bank released a loan at a 9% interest rate in August last year for the projects.

The funding, part of the Nigeria Electricity Market Stabilisation Facility-3, amounts to N122,289,344 and aims to address transmission/distribution bottlenecks, enhance supply to end-users, and unlock unutilized generation capacity.

Tijani disclosed that N85.43 billion has been disbursed into the Advance Payment Guarantee account of the 53 contractors responsible for executing the projects.

The comprehensive project list includes the delivery of power transformers, re-conductoring existing transmission lines, upgrading existing substations, and constructing 33KV line bays.

The initiative reflects a concerted effort to enhance Nigeria’s power infrastructure and meet growing energy demands.

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