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Civil Servants Purchase Rice at N40,000, Sell for N85,000 – Rewan
Rewane highlights how civil servants are purchasing 50kg of rice at N40,000 and reselling it at N85,000. Get insights into this economic activity.
According to Bismarck Rewane, an acclaimed economist and the Executive Director of Financial Derivatives, certain government workers procured 50kg sacks of rice for N40,000 only to vend them later at a marked-up price of N85,000.
In an interview with Channels Television on Thursday, Rewane revealed this information.
He stated that the cost of rice, which he referred to as a “parallel market,” rose by 3.62 percent from N83,000 to N85,000 despite the government’s subsidized price of N40,000.
Yesterday(Wednesday), our team visited the market and discovered that rice prices had increased by 3.62 percent to N85,000 per bag. Interestingly, this was happening at a time when the federal government was selling rice to public servants for only N40,000 per 50-kilogram bag. In contrast, the parallel market price of rice stood at an exorbitant rate of N85,000 which resulted in civil servant buying it cheaply from government then reselling it inefficiently for profit purposes as highlighted by one source in his statement: “That is inefficient”.
On Thursday, the federal government declared the halt of selling 50kg bags of rice to civil servants at a price tag of N40,000.