The Nigerian government has reduced rice import tariffs to 47.5% from 70% under its 2026 fiscal policy document seen by Platts, part of S&P Global Energy.
The government cut duty on bulk rice above 5 kg to 47.5% from 70% and reduced broken rice duty to 30% from 70%. It also adjusted sugar tariffs.
A Cotonou-based trader said, “The Cotonou rice market will be watching this new tariff because that could mean importers will prefer to import directly to Nigeria rather than use the Cotonou route.”
A Delhi-based importer questioned the impact of lower duties and pointed to foreign exchange limits as a key driver of import volumes rather than tariffs.
A Dubai-based exporter warned that higher direct imports into Nigeria could weaken Cotonou supply and force cargo storage in bonded warehouses for longer periods of time.
A Nigeria-based miller called the move a pre-election policy tool aimed at managing inflation ahead of elections in February next year while balancing consumer prices and farmer incomes.
Another miller said the 47.5% duty on finished rice would not disrupt markets immediately but flagged risks around broken rice imports due to possible misdeclaration.
A third miller said the timing worsened pressure on the sector as prices stay low and producers struggle to recover margins. “The government will have to give better options to farmers on seeds, agrochemicals, and fertilizers to lower paddy prices otherwise local production of rice in Nigeria will die,” the third miller said.
Platts assessed West African parboiled rice breakbulk at US$414 per metric ton on April 15 as freight costs rose after disruptions linked to the Middle East conflict.
A trader added that brown rice imports into Nigeria face milling limits, while broken rice imports carry higher risk of misdeclaration.
In another separate Platts report, Nigerian rice prices dropped by 32% since January driven by global surplus and strong export flows from Asia.
According to the report, local rice now trades at N58,000 to N70,000 (US$40 to US$49) per 50kg bag, down from N85,000 (US$58) with imported brands selling at N65,000 to N75,000 (US$45 to US$52), down from N95,000 (US$65). Platts assessed 5% broken parboiled rice CFR Cotonou at US$399 per metric ton, down 22%.
India and Thailand push large volumes into West Africa after strong harvests and policy changes. India rice exports for 2025 to 2026 may reach 22 to 23 million metric tons, with forecasts up to 30 million tons.
A Lagos-based trader said, “It is a structural surplus and will take time to correct,” adding that no strong price recovery will appear before mid-2026.
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