Olufemi  Adeyemi


It has been alleged by Bismarck Rewane, a prominent economist and Executive Director of Financial Derivatives, that certain civil servants engaged in the purchase of 50kg bags of rice at a subsidized price of N40,000, only to subsequently resell them at an inflated price of N85,000.

Rewane made this disclosure during an interview with Channels Television on Thursday. He highlighted the existence of a “Parallel market” for rice, where the price has experienced a notable increase of 3.62 percent, moving from N83,000 to N85,000, despite the government’s efforts to subsidize the price at N40,000.

“Our team went into the market Yesterday(Wednesday),… The price of rice coincidently went up by 3.62 percent to N85,000. This is happening at the time the federal government is selling rice to public servants at N40,000 per 50-kilogram bag.

While in what I can now describe as the parallel market for rice stood at N85,000. What happens is that the civil servant will buy at N40,000 per bag and sell at N85,000, that is inefficient”, he said.

The federal government has made an announcement on Thursday regarding the suspension of the sale of 50kg bags of rice to civil servants at a price of N40,000.

This is contained in a circular titled, “Withdrawal of internal circular on sale of subsidized rice to public servants”, and signed by the permanent secretary of the Ministry of Special Duties and Inter-Governmental Affairs Human Resources Management Department. 

The previously issued circular instructing the sale of the N40,000 bag of rice has been rescinded, as per the most recent communication sent to Directors and Heads of Departments.

The circular did not provide any justification for the change in plans.

“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Affairs) of 1st August, 2024 on the above subject matter and to inform you that the Internal Circular is hereby withdrawn.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.