The Impact of Nigeria's Rice Import Policy on Household Welfare

Abstract

I examine how increases in the tariff rate impacted market prices and household consumption of imported rice in Nigeria during 2001-2018. I find that the country-level tariff pass-through for imported rice was 7 percent and occurred three-months after implementation. When faced with increases in the tariff-rate, households decrease their consumption of imported rice. Households that face greater exposure to the tariff rate decrease their consumption more than those that are less exposed. The relatively small tariff pass-through and the responsiveness of consumption to increases in the tariff rates are crucial pieces of information for informing Nigeria’s future rice policy.