A future for local rice production

The Central Bank of Nigeria (CBN), through its Anchor Borrowers Programme (ABP) is on the forefront powering and promoting the production and consumption of local rice for the greater benefit of the economy. The apex bank’s drive is in accordance with the developmental role of Central Banks, especially in developing countries.

Experts posit that Central Banks in developing countries should not limit their activities to merely regulatory, and the management of “The Policy Trilemma’’, but should also engage in developmental and promotional activities to serve the society by supporting the real economy.

As Tushar Seth noted, ‘’the main task of Central Banks in under-developed countries is to bring about a rapid expansion of banking facilities and also to make adequate funds available to finance development programmes in respect of agriculture, trade, transport and industry, and to create specialized financial institutions for the purpose’’.

Between 2009 and 2013, CBN’s Commercial Agriculture Credit Scheme (CACS) disbursed a total of about N16.2billion to 12 rice producers ‘’who managed to meet about 10 percent of national consumption’’. But in his maiden press briefing on assumption of office, CBN Governor, Godwin Emefiele promised to improve on the apex bank’s development functions for greater impact. He said, ‘’some of the Central Bank’s development functions will include credit allocation and direct intervention in key sectors of the economy such as agriculture, MSME, power, oil and gas and health, adding, ’’we believe that we can scale up this amount to enable these producers meet a much more higher share of our national consumption, thereby, reducing our import needs for importation of commodities such as rice.

Specifically on agriculture, Emefiele noted that ‘’intervention in the agriculture sector will now be driven towards improving productivity in areas with high domestic demand, where opportunities exist to improve domestic supply such as rice, fish, wheat and sugar and conservation of foreign exchange’’.

Walking the talk, the CBN set aside N40billion, out of the N220billion earmarked for Micro, Medium and Small  Enterprises (MSME)  for farmers, at a single digit interest rate of 9 per cent. Smallholder rice farmers will get between N150, 000 to N250, 000 to enable them procure seedling, fertilizers and pesticides.

Out of the N40billion,  N4.9billion has been disbursed to 78,581 farmers in Kebbi state which has an abundance of rice paddy . Each  farmer got N218,000 to enable them cultivate a hectare of land to plant three times a year-two dry season cropping and one rainy season cropping, a development which is said to have generated a total of 570,000 direct jobs, and a harvest of 1million tons of rice .

Kebbi state also signed a Memorandum of Understanding (MOU) with Lagos State to deliver rice to Lagosians before Christmas, and to collaborate on agriculture and commodity development. Lagos state has rice milling capacity and with an estimated consumption of over 798,000 metric tonnes of milled rice per year.

There are about 13 rice producing states in Nigeria, including Anambra, Cross River, Benue, Ebonyi, Jigawa and Sokoto. Others are Niger, Plateau, Katsina, Kaduna and Zamfara, and most of them have recorded remarkable progress in rice production this year. Harvest of rice has outstripped projection. Ebonyi state surpassed its production target and a bag of rice now sell for N8, 000 in the  state which has banned the sale of foreign rice.  In a press report, the Chairman, Abakaliki Rice Mill Owners Industrial Association, Joseph Ununu, enthused ‘’our rice is newer and better, unlike the foreign rice which has wasted many years on the high seas, before it is cleared; owners taking possession, and finally getting to consumers at which point it would have become chaff.’’

Anambra State produced 236,000 metric tonnes of rice this year, surpassing the earlier projection of 210,000 metric tonnes. And in Delta state, out of the 30,000 farmers under the ABP, only 4,000 have reportedly been accredited to participate in the first phase of the programme.

CBN Governor urged farmers to register for the Bank Verification Number (BVN) to enable them access the facility. The apex bank’s drive to boost and promote local rice production and consumption and agriculture in general, is predicated on the truism that Nigeria cannot attain greatness by importing everything and anything (Nigeria should not be the ‘’junk yard of the world’’),   the need for self-sufficiency in food production, and protection of jobs and income of farmers.

As the Minister of Agriculture, Chief Audu Ogbe noted ‘’each shipload of rice imported into the country displaces about 12,000 farmers’’. We should be able to feed ourselves, and not be a people who do not consume what we produce, but mostly consume what we do not produce.

With the bumper harvest recorded thus far, CBN has set a target for the exportation of rice before the end of 2017 when it is projected that local rice production will hit 2.730 million tons. A strong agricultural base and food security is one of the basic and major prerequisites in nation building.

Rice is one of the most consumed food in Nigeria and indeed the world. It is a staple food of over 70 per cent of the population, and is considered a luxury food for special occasions. Demand for rice continuously outstrips the supply, the reason it is also one of the most imported food items which constitutes a drain on the nation’s foreign exchange.  Between 2012 and 2015, the import bill on rice was US$2.41billion, and it is estimated that it may double over time if it is not checkmated.

The current price of a bag of imported rice has hit the roof, ranging between N17,000 to N25,000. It is ominous, but with the ABP and other concerted efforts to boost the production and consumption of local rice, the tables have started to turn.

The emerging trend  has been termed  the ‘’rice revolution’’ in some quarters, and  if sustained it would conserve foreign exchange, create  a crop of millionaire farmers, boost the profile of farming and  attract young people into farming and reduce the rate of unemployment.

There are many varieties of rice that are grown in Nigeria which market watchers believe have ready market  in the surrounding West African countries and indeed the entire continent. The problem is that stones get mixed with local rice which reduces the marketability even as they face competition from imported rice which is favoured for its long white grain. Thus, the need to raise the quality of local rice to discourage importation.

 

Arize Nwobu