Much Ado about a Bag of Rice?

Must Read

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...

FG, States, LGAs share N528.39bn FAAC allocation in Jan 2021

The Federation Account Allocation Committee (FAAC) disbursed the sum of N619.34bn to the three tiers of government in December...

List of Access Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...
- Advertisement -

Towards the end of 2019, developments in the Nigerian rice market made headlines. This was as the government ordered the complete closure of all land borders, causing the price of rice to skyrocket. This was expected, given the significant importance of the commodity (Nigeria’s third-most consumed staple food according to Ricepedia), and the huge domestic supply deficit (averaged 43.5% from 2007-2018) which had been augmented by the importation/smuggling of rice from cheaper and better quality foreign sources.

Much Ado about a Bag of Rice? - Brand Spur

Looking back in time, we highlight the fact that the government’s restriction on importation of rice in 2015, earlier resulted in a 115.0% surge in price between 2014-2018. However, large scale smuggling resumed shortly after, amid porous borders. Seeing as history has repeated itself, the border closure was a more stringent approach, as local consumers continued to show a preference for the imported substitute.

With a forward view, while the border closure is expected to end by Jan 31st, 2020, the re-opening is still uncertain, as Nigeria is yet to reach a concrete deal with its neighbouring countries. As such, we expect investments in the rice sector to increase, as operators mobilize finance required to ramp up production in a bid to close the supply shortfall created and take advantage of the current high prices. Also, investments will also move towards curbing supply shortages in foods such as frozen foods, palm oil as well as other imported food items, affected by the recent border crisis.

Read Also:  Flour Mills of Nigeria Plc 9M'20 - Favorable Economic Policy Provides Support as Earnings rise on the back of border closure
- Advertisement -

United Capital Plc Research

- Advertisement -
Much Ado about a Bag of Rice? - Brand SpurMuch Ado about a Bag of Rice? - Brand Spur
- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Much Ado about a Bag of Rice? - Brand SpurMuch Ado about a Bag of Rice? - Brand Spur

Latest News

Syngenta, WACOT Partner To Boost Nigeria’s Food Security

WACOT Limited, one of Africa’s leading food and agro-processing companies, has partnered with a global agritech company, Syngenta. This would...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Much Ado about a Bag of Rice? - Brand SpurMuch Ado about a Bag of Rice? - Brand Spur