Nigeria’s domestic rice production capacity has dropped significantly from eight million metric tonnes to 5.3 million metric tonnes, raising concerns among stakeholders about the sustainability of the country’s rice value chain.
This revelation was made by the Competitive African Rice Platform – Nigeria Chapter (CARF-FSD Nigeria), a coalition of rice farmers, millers, processors, marketers, NGOs, and development partners.
Chairman of CARF-FSD Nigeria’s Board of Trustees, Mr. Peter Dama, attributed the sharp decline to unfavourable government policies, particularly the 2024 duty waiver on food imports, and the persistent influx of smuggled rice into the country.
“We are sounding the alarm over the existential threat facing Nigeria’s rice value chain due to policy distortions, selective import waivers, and unchecked smuggling,” Dama stated. “Nigeria’s rice industry, which has experienced over two decades of steady growth through public-private investment, is now at the brink of collapse unless urgent policy reforms are implemented.”
According to Dama, the domestic milling capacity stands at over 13 million metric tonnes — sufficient to meet and exceed national demand. However, much of this capacity is now underutilised due to market disruptions caused by cheaper, untaxed imports and smuggled rice.
He warned that the Federal Government’s 180-day duty waiver, which took effect in July 2024 and allows for the importation of food items including husked brown rice, has inadvertently triggered a downturn in the local rice industry.
“While the policy was introduced to stabilise food prices and curb hoarding, it has instead crippled local production. Paddy demand has collapsed, mills are shutting down, and farmers are stuck with unsold harvests,” he lamented.
Dama further noted that the crisis is not only economic but also social, with job losses mounting across key rice-producing states such as Kebbi, Kano, Ebonyi, Plateau, Nasarawa, Jigawa, Ekiti, Benue, Akwa Ibom, and Adamawa.
He added that the fallout from the current situation has severely affected youth employment and women-led processing clusters, reversing years of progress in economic inclusion and empowerment.
“Beyond the waivers, porous borders continue to facilitate massive inflows of smuggled rice, saturating the market and distorting prices to the detriment of local producers,” Dama said.
Stakeholders are now calling on the government to urgently review its policies and prioritise support for local production in order to revive the ailing sector and secure Nigeria’s food sovereignty.
