Oluyinka Onigbinde
Investigation carried out by Shipping Position Daily has uncovered how a multi-billion Naira cartel is thriving in Nigeria’s rice markets, where locally-produced grains are repackaged and sold under fake foreign labels, deceiving consumers and taking advantage of the nation’s food market.
Findings by our correspondent revealed that what appears to be a simple act of re-bagging of rice at various locations in markets, warehouses and land borders, has snowballed into a sophisticated racket that undermines government policy on food sufficiency, erodes consumer trust, and channels huge profits into the hands of cartels operating across the country.
According to market survey carried out by our correspondent the practice, thrives at Ikotun, Daleko markets in Lagos state and Sango Ota market, in Ogun state, which has become more rampant following the decline in the smuggling of foreign rice into the country.
The illicit trade is estimated by stakeholders to run into several billions of naira annually. Locally produced rice is offloaded, re-bagged in imported sacks, and then sold at inflated prices to unsuspecting buyers desperate for so-called “foreign rice.” The mafia-style operation feeds on Nigerians’ perception that imported products are superior, a belief that has created an endless cash stream for economic saboteurs.
Findings revealed that traders in these markets now deploy various methods knowing that Nigerians still exhibit a strong preference for imported brands.
Some sellers at these market confirmed to our correspondent that they painstakingly pick stones and dirt from locally-milled rice before re-bagging them into sacks of popular brands such as Mama Gold, Royal Stallion, and Caprice. According to them, once the rice is thoroughly picked, and destoned, it becomes extremely difficult for consumers to differentiate between imported and ‘local’ rice.
One trader at Ikotun market, who preferred not to be named, explained that: “Foreign rice doesn’t come in like before because Customs and security people have blocked many routes. Demand for foreign rice is still high, so what we do is buy local rice, ‘pick’ it very well, and put it in foreign bags. Once it is neat, nobody can know the difference, and customers pay more for it.”
Another rice seller at Sango Ota corroborated the claim, noting that consumers willingly pay a premium for rice that looks like imported grains. “Some people believe foreign rice tastes better. So, when you put clean local rice inside foreign bags, they rush it. The price is higher than the one sold as ‘Abakaliki’ or local rice with stones,” she said.
Although traders admitted that rice smuggling has not stopped entirely, they agreed it has reduced significantly, due to tighter border controls, a development that has made the repackaging of local rice more attractive. “Before, smugglers used to bring in many bags from Benin Republic, but now it is not as easy. That is why many sellers are re-bagging. It is faster and more profitable,” a dealer at Daleko Market disclosed.
Shipping Position Daily recalls that recently, the Federal Competition and Consumer Protection Commission (FCCPC) clamped down on such practices at Daleko market. What was meant to be an enforcement exercise eventually turned into mayhem, as traders resisted officials of the Commission, who were accompanied by armed policemen and journalists. The traders, in their hundreds, insisted that the team could not seal shops without clearance from the Iyaloja (market leader) of the market, who was not present at the time.
The FCCPC team, however, confirmed that some traders were re-bagging substandard rice in the names of well-known brands, despite the fact that some of those companies had stopped production in Nigeria years ago. Royal Stallion Rice, for instance, had announced in 2015 that it no longer produced rice in Nigeria, yet bags bearing its label still litter markets across the country.
During the raid, Shop 117 at Daleko Market was sealed after officials discovered empty branded rice bags of Big Bull, Royal Stallion, Caprice, Rising Sun, and Tomato Aroso. In another shop, rice of inferior quality was bagged as Ma’choice and sold for as high as N85,000 per 50kg bag. The team also found tampered weighing scales and measuring equipment, further defrauding consumers.
Mrs. Margaret Aboluwade, the FCCPC Southwest Zonal Coordinator, told journalists that the activities amounted to economic sabotage. “Both Stallion and Cap rice are no longer in the market; they are not functioning any longer. What they do is get local rice and rebrand it as Stallion or Cap rice,” she said. She added that rebranding expired imported rice was another common practice in the market.
Similar raids had earlier been carried out at Utako Market in Abuja, where at least 10 shops were sealed. FCCPC’s Director of Surveillance and Investigation, Mrs. Boladele Adeyinka, warned that offenders would face stiff administrative penalties and fines.
Despite the resistance, the FCCPC vowed not to relent in protecting consumers. However, traders in Daleko maintained that rice re-bagging is one of the few ways they can survive in the face of high prices and dwindling supply. One market leader, who declined to be named, said: “We are widows and single mothers; this is the business we do to cater for our family. But we will also put more effort into sanitizing the rice business in the market.”
Amid these revelations, rice farmers have also expressed concern over the rising cost of the staple food. Some leaders of farmers’ associations said the trend of repackaging local rice in foreign sacks is worsening the price situation and cheating genuine consumers.
Speaking on the issue, the Vice Chairman of the All Farmers Association of Nigeria (AFAN), Mr. Sakin Agbayewa, blamed unscrupulous farmers, middlemen, and retailers for manipulating the rice market. “The main issue is that the rice price hike can be linked to a cartel that wants to frustrate the government’s effort,” he said.
Agbayewa stressed that some farmers and traders now deliberately re-bag local rice as foreign to sell at higher rates. “It’s not that we do not produce enough, but some farmers only capitalise on the shortage in the system. And with the shortage, they are now repacking local rice in foreign bags for selfish reasons. They do this to sell at a high cost, because they know Nigerians have a high taste for foreign things,” he added.
On his part, the Chairman of the Rice Farmers Association of Nigeria (RIFAN), Lagos State chapter, Mr. Raphael Hunsa, called on government to engage real farmers in policy discussions. He noted that without direct support to genuine local rice producers, the price would continue to soar, leaving room for middlemen and fraudulent marketers to exploit consumers.
