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Nigeria Abandons Plan to Sell 50kg Rice at N40,000

Bags-of-rice

The Nigerian government has cancelled plans to sell 50-kilogram bags of rice to civil servants at a subsidised price of N40,000.

This decision was communicated through a circular issued by the Ministry of Special Duties and Inter-Governmental Affairs.

The circular, addressed to department heads and directors, withdrew the previous directive for the sale without providing a reason for the change.

“I am directed to refer to our internal circular in the Ministry (Federal Ministry of Special Duties and Inter-Governmental Affairs) of 1st August, 2024 on the above subject matter and to inform you that the Internal Circular is hereby withdrawn. Further details will be communicated in due course.

“Please bring the contents of this internal circular to the attention of staff in your respective Departments and Units for their information and proper guidance,” the notice read. 

The initial plan, announced on August 1, 2024, aimed to alleviate the impact of rising food inflation, which stood at 40.87% in June 2024.

Civil servants were instructed to register for the subsidised rice through an online form, with each staff member eligible to purchase one bag.

The Ministry had stressed transparency in the distribution process, involving union representatives as observers.

The rice sale was intended to start with civil servants before being extended to the general public.

The withdrawal of this plan comes following ongoing efforts by the government to combat food inflation through various measures, including releasing grains from reserves and providing fertilisers to farmers.

These initiatives, however, have yet to bring any significant reduction in the prices of food items.

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