Can Nigeria be self-sufficient in rice production by 2018?

Recently, Audu Ogbeh, Minister of Agriculture and Rural Development said that Nigeria would be self-sufficient in rice production by 2018 going by the current momentum of investments in its production.

The Federal Government established a National Rice Task Force, with a target to yield comprehensible and self-evident results in rice production in the country in order to achieve sufficiency.

Also, the government introduce the Anchor Borrowers Programme (APB) to provide credit in form of inputs for rice farmers to increase their production areas thereby boosting productivity.

These initiatives led to the increase in the country’s paddy production from about four million to seven million metric tons annually, according to data obtained from the National Bureau of Statistics (NBS).

The APB which is begin managed by the Central Bank of Nigeria (CBN), started in Kebbi State and has since gained a lot of traction and recorded great successes stories. It is currently being replicated in other key rice producing states across the country.

The success of the Kebbi rice programme was attributed to the single digit interest rate extended by the CBN, which enables farmers to purchase quality fertilisers, seeds and other inputs.

Number of rice mills in the country – both integrated and cottage – have increased by more than 50 percent in recent months as government and private sector continues to make more investments in processing.

Average crop yield per hectare of the rice has risen from 2.5 metric tonnes per hectare to an average of 4 and 5 metric tonnes of the same acreage, according to experts.

Similarly, states across the federation are expanding rice operations to boost production through direct investments in milling plants and creation of enabling environment for private sector investors.

Lagos and Kebbi states in 2016, signed a Joint Venture (JV) agreement to establish a modern and commercially viable rice milling complex, which will have the capacity to process and mill twenty (20) tons of rice per hour.

Apart from Lagos and Kebbi, Cross River, Benue, Kano and Kaduna have also been home to new investments in rice. Early 2016, Thai-African Corporation berthed Calabar, Cross River State, for the development of Rice City in the state.

Despites all the progress made thus far, stakeholders say it will still take the country the next five years to be sufficient in rice production if the momentum of investments are sustained. Also, farmers must have access to improved seeds and seedling, technology and government must address the perennial problem of smuggling.

“We cannot be self-sufficient in rice production by 2018 despite the momentum of investments in rice production because the bulk of our rice is grown with cutlasses and hoes. We need to introduce machines to the cultivation of rice and irrigation facilities to ensure all year round farming,” Rotimi Fashola, a rice expert and chief executive officer, OTI Consulting told BusinessDay.”

“Mechanisation is not negotiable if Nigeria will be self-sufficient in rice production,” Fashola said.

According to data from the Federal Ministry of Agriculture, Nigeria is one of the least mechanised farming countries in the world with the country’s tractor density put at 0.27 hp/ hectare which is far below the Food and Agriculture Organisation (FAO)’s 1.5hp/hectare recommended tractor density.

When measured in 2003, 12 years ago, Nigeria had only 30,000 tractors. African largest economy is currently adding 1,000 new ones each year, which is still not considered sufficient in replacing the aging, worn out, and broken down ones.

Perennial problems still persist

Most rice farmers in the country are small holders who still farm using hoes and cutlasses and depend on rain-fed agriculture.

Abiodun Olorundenro, CEO, Green Vine Farms said “Lack of technology and innovation remains one of the reasons why we still have a shortfall in production.

“Technology is very crucial if Nigeria really wants to boost agric productivity,” Olorundenro added.

Africa most populous nation ranks among the top 12 rice consuming countries in the world and the highest net importer of rice in Africa and the second largest importer in the world, according to data from the Food and Agricultural Organisation.

Currently, much of the consumption capacity of rice in the country is largely catered for by the importation of rice from other rice producing countries.

This, coupled with the perennial problem of smuggling, makes it hard for farmers to compete favourably thus discouraging investments.

According to a BBC report, Nigeria imported 2.3 million tonnes of rice in 2016 and spends $5 million per day on rice shipment.

“Smuggling has been a great challenge to the government. Our borders are porous because of corruption. It involves change of attitude on the part of the agencies before the issue can be addressed,” Adeola Elliot, chairman of agric group, Lagos Chamber of Commerce and Industry (LCCI).

“Smugglers would not smuggle rice into the country when it is abundant in supply and the competition is high,” Adeola said.

According to the Federal Ministry of Agriculture, Nigeria’s domestic demand for rice is put at 6.3 million tonnes, while the country produces only 2.3 million tonnes per annum, leaving a supply-demand gap of four million metric tonnes.

Rice millers still not competitive

Millers in the country are less competitive than their counter parts in India, Thailand, Brazil and China.
This is due to the high cost of paddy production and processing costs.
Paddy prices in Nigeria hovered around N60, 000 per metric tonne in 2015 to N140,000 in 2016 which is significantly higher than the prices in Indian and Thailand. This makes it challenging for millers in Nigeria to be competitive, rice experts say.

Attaining sufficiency

Nigeria has the potential to be a power house in rice production, but will have to intensify it efforts in boosting productivity and addressing inherent problems limiting improved yields per hectare.
According to experts, it will take the country another three to five years to achieve self-sufficiency when the issues thwarting production are addressed and farmers begin to farm all year round.

“I do not think Nigeria will be self-sufficient in rice production by 2018 despite the momentum that rice production is gaining currently. But if the country can maintain the momentum of investments, commitment by the government in rice production, and address the issues of inputs and mechanisation the county will make a giant strive towards self-sufficiency in the next three years,” said Oladipo Williams, executive vice president and co-founder, Haske &Williams Limited in an interview with BusinessDay.

Josephine Okojie