Economy

Imported Rice Crisis Hits Nigeria Farmers Hard

Published

6 months ago

April 20, 2026

Imported rice crisis Nigeria deepens as cheap imports crash prices, threaten farmers’ livelihoods and destabilise local rice production.

Mr Sakin Agbayewa, Acting Chairman of the All Farmers Association of Nigeria and a rice farmer, alongside Mr Raphael Hunsa, Lagos State Chairman of the Rice Farmers Association of Nigeria, has raised urgent concern over a deepening imported rice crisis Nigeria is currently experiencing, as cheap foreign rice continues to flood markets and depress local prices across the country.

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Mr Agbayewa warned in Lagos on Sunday that the Federal Government’s 2024 import duty waiver had triggered a sharp increase in rice imports, worsening pressure on domestic producers already battling rising costs and unpredictable climate conditions.

He said the imported rice crisis Nigeria is facing has made local cultivation increasingly unprofitable, with many farmers now unable to recover production costs.

According to him, production expenses require farmers to sell a 50kg bag at between N60,000 and N65,000, yet imported rice is retailing at around N40,000.

The situation, he described as “devastating”, has forced several farmers to reconsider planting ahead of the new season, raising fears of reduced local output and long term dependence on imports.

Mr Raphael Hunsa echoed the concern, stating that rice farming in Lagos State has become increasingly unstable.

He said many farmers are struggling to afford fertiliser and basic inputs, while market prices remain heavily influenced by imported stock.

He added that despite government assurances of support, the imported rice crisis Nigeria continues to intensify, leaving local producers exposed to aggressive price undercutting.

In Agege Market, trader Mrs Tolu Ajiboye confirmed a significant drop in retail prices.

She noted that a 50kg bag of rice, which sold for up to N63,000 during the Easter period, now sells between N51,000 and N55,000 depending on brand and quality.

She observed that some local producers have resorted to repackaging rice in foreign-style bags in a bid to remain competitive in an increasingly saturated market.

While consumers have benefited from lower prices, stakeholders warned that the trend could prove dangerous for Nigeria’s long term food security if domestic production continues to decline.

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As the planting season approaches, farmers are calling for urgent policy intervention to stabilise the sector, reduce production costs, and restore market balance before the situation becomes irreversible.

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Economy

NRS Assures Taxpayers VAT Remains at 7.5% Amid Tax Reform Concerns

Published

1 day ago

October 27, 2026

Peculiar Adirika

NRS VAT rate remains 7.5%, the agency says, while addressing concerns over bank deductions, loans and the implementation of Nigeria’s tax reforms

The Nigeria Revenue Service (NRS) has assured taxpayers that Nigeria’s standard Value Added Tax (VAT) rate remains 7.5 per cent, while addressing concerns over the implementation of the country’s new tax reforms.

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The assurance was given by the Tax Administrator responsible for Kano, Jigawa and Katsina states, Samaila Abdullahi, during an NRS stakeholders’ engagement and tax reform sensitisation programme in Kano.

Abdullahi said concerns raised by individuals, traders, business owners and other stakeholders about the new tax laws were understandable, particularly questions relating to bank transactions, loans, family transfers, business income and the potential impact on small businesses.

He urged taxpayers to understand the reforms through the provisions of the law rather than rely on assumptions or misinformation.

According to him, the tax laws do not automatically authorise deductions from personal bank accounts.

He stressed that tax collection and recovery must follow the applicable legal provisions and procedures.

Abdullahi also clarified that money received as a loan should not automatically be classified as business income or profit, explaining that proper documentation is essential to establish the nature of a transaction.

“For instance, when a trader receives a loan of N500,000, the amount should not automatically be treated as N500,000 in sales or profit, provided the transaction is properly documented,” he said.

The NRS official’s comments were aimed at addressing public concerns about how the new tax framework would affect personal finances and business transactions.

He emphasised the importance of distinguishing between taxable business receipts and other funds, such as documented loans, when determining a taxpayer’s obligations.

The clarification comes amid heightened public interest in Nigeria’s tax reforms and questions about their implications for individuals, traders and small businesses.