- Hoarders Count Losses as Grain Prices Plunge Below Purchase Cost
- Experts Warn Against Long-Term Dependence on Food Imports
While Nigerians celebrate a sharp decline in food prices, traders who stockpiled grains for profit are facing significant losses as prices have dropped by as much as 40% between December 2024 and March 2025.
Many traders, expecting the usual price surge early in the year, invested heavily in grains, only to watch their value plummet. A 50kg bag of beans, which sold for N100,000–N140,000 in December, now goes for N75,000–N85,000. Rice prices have crashed from N114,000 to N52,000, while soya beans, which peaked at N120,000, now sell for N60,000. Other grains have also seen drastic reductions:
- Sorghum: N140,000 → N35,000–N40,000
- Millet: N70,000 → N40,000
- Maize: N120,000 → N45,000
- Yam (120 pieces): N300,000 → N180,000
Traders Lament Heavy Losses
For traders like Nike Akanni from Iseyin, Oyo State, the situation is dire. She took a N1.5 million loan to buy maize in December, anticipating a price increase by March, but instead, she’s struggling to break even.
“Last year, I bought maize for N60,000 per bag and sold at N120,000. But now, prices have dropped below what we paid, and our money is tied up in unsold stock,” she lamented.
Similarly, Saleh Abu, a grain trader in Katsina, expressed frustration, saying, “We used all our money to stockpile grains, expecting to sell at a profit. Now, we’re stuck because prices keep falling, and we have no money left for new stock.”
From Kano, Adamu Musa noted that food companies, which previously bought grains in bulk, have reduced purchases, with some even requesting credit instead of paying upfront.
Why Are Food Prices Falling?
Economic analysts link the drop to increased food imports following the federal government’s decision to reopen land borders and grant import waivers to ease the food crisis. This policy, introduced in July 2024, was aimed at stabilizing food prices after inflation peaked at 50% in December 2024.
Economist Ismael Mohammed explained that increased food supply has driven prices down. “The force of supply has been manipulated through imports, increasing availability and reducing costs,” he told The Guardian. However, he warned that this approach is not sustainable in the long run.
“If the government continues relying on imports, it will hurt local farmers and food security,” he added.
Some traders, like Akanni, also believe that Customs’ reduced seizures at land borders have allowed more food to enter Nigeria, further increasing supply and pushing prices down.
The Bigger Picture: Food Security and Farmers’ Struggles
While the price drop has provided relief to consumers, experts warn that Nigeria’s food crisis remains unresolved. Factors like insecurity, post-harvest losses, and declining local production continue to threaten long-term food stability.
According to Suleiman Dikwa, Managing Director of Green Sahara Farms, post-harvest losses account for 40% of food waste, worsening supply challenges. He urged the government to focus on improving security and infrastructure to help farmers return to their lands.
Analysts argue that while food importation has temporarily eased the crisis, the most sustainable solution lies in addressing insecurity, supporting local farmers, and reducing food waste. Until then, traders may continue to struggle with unpredictable market conditions, and Nigeria’s food supply chain will remain vulnerable to external shocks.
