Nigeria Welcomes 32,000 Tons of Thai Rice Amid Food Inflation Crisis

Nigeria Welcomes 32,000 Tons of Thai Rice Amid Food Inflation Crisis

In a bid to tackle rising food costs, Nigeria has received its first shipment of Thai brown rice in over a decade. The 32,000-tonne consignment, facilitated by logistics firm DUCAT, arrived in Lagos under a duty-free import policy introduced by the federal government.

This shipment follows the government’s July 2024 decision to implement a 150-day duty-free policy on food imports, including rice, wheat, and maize. The policy aims to replenish Nigeria’s strategic grain reserves and provide relief to millions grappling with skyrocketing food prices.

DUCAT CEO Adrian Beciri described the move as part of broader efforts to strengthen Nigeria’s food supply chain.

“Nigeria has been working hard to find solutions to broaden and strengthen its food supply accessibility,” Beciri said in a statement.

The duty-free policy has drawn mixed reactions from experts.

Supporters believe the move could stabilise prices and reduce inflation, providing financial relief to households. “This approach can make essential goods more affordable for Nigerians,” said one economic analyst.

However, critics warn of potential negative impacts on local farmers. By lowering the cost of imported goods, domestic producers might face increased competition, threatening their market share and profits.

Dr. Akinwunmi Adesina, President of the African Development Bank, expressed strong opposition. “Relying on food imports undermines Nigeria’s agricultural policy and economic stability,” he argued, emphasising the importance of self-sufficiency.

Despite the government’s efforts, food inflation remains a critical challenge.

The National Bureau of Statistics (NBS) reported that food inflation reached 39.93% in November 2024, a significant jump from 32.84% the previous year. Abuja and 19 states recorded food inflation rates exceeding 40%, highlighting the severity of the crisis.

Staple foods such as yam, rice, maize, and palm oil have seen sharp price increases. Guinea corn, millet, and meat have also become more expensive, compounding the strain on household budgets.

In addition to duty-free imports, the government has outlined plans to set a Guaranteed Minimum Price (GMP) for key commodities, enhance production by smallholder farmers, and promote fortified food production for the 2024/2025 season.

These initiatives aim to increase food availability and affordability while supporting local agricultural development.

The arrival of Thai rice underscores Nigeria’s urgent need to address food shortages. While the duty-free policy provides immediate relief, experts stress the importance of long-term strategies to bolster local production and reduce dependence on imports.

For millions of Nigerians facing a cost-of-living crisis, the next steps will determine whether these policies can effectively balance relief and sustainability.