How FG’s agric revolution spurs investment in rice

From the Laban Rice Mill in Kebbi to the Cosharis Rice Mill in Akwa and Lagos Rice Mill in Imota, Nigeria’s agricultural revolution is driving investments across the rice value chain.

Rice production has dominated the discourse in the Buhari-led administration’s agricultural sector revolution since coming into power in 2015.

A 70 percent tariff was imposed on rice imports through the ports, coupled with an outright ban through land borders by the federal government to support the local rice industry.

The policy created opportunity across the value chain and spurred investments as farmers and millers ramp up production to meet the ever-growing demand for rice – a key staple in Nigerian diets.

Rotimi William, chief executive officer of Kereksuk Rice Farm, said the agric revolution brought lots of investments across the rice value chain.

“Lots of youths made investments in rice production owing to the revolution in the sector,” William said. “Some youths invested in the aggregation of paddy for millers while others in the cultivation of the crop.”

Data from the National Bureau of Statistics show that Investments in the agricultural sector grew from $98.3 million in 2015, when Buhari launched the campaign, to $366 million in 2021.

The number of rice mills that have sprung up across the country and local rice brands that have become more visible is evidence of improvement.

Both integrated and cottage mills have increased by more than 60 percent in recent years as the government and private sector continue to invest in processing.

The number of integrated rice mills jumped from 10 to above 60 during the same period, according to industry data, an indication that investments are fast rising in the production of the crop.

Milling capacity also increased from 350,000 metric tonnes per annum in 2015 to more than 3 million metric tonnes per annum in 2021, according to the United States Department of Agriculture (USDA).

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The average crop yield per hectare has risen from 2.5 metric tonnes per hectare to an average of 4 and 5 metric tonnes of the same acreage, owing to renewed government commitment, experts said.

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The most recent reliable figures for production come from the USDA, which puts Nigeria’s milled rice 2022/2023 production at 5.5 million metric tons (MMT), up over 10 percent from the 2021/22 figure of 5 MMT.

“Since the agric revolution, lots of farmers who have abandoned growing rice have returned and even other farmers are shifting to rice cultivation because the market is there now and it is profitable,” Muhammed Augie, former chairman of Rice Farmers Association, Kebbi chapter, said.

“Mills are springing up across the country, a testament that the revolution in the sector is driving investments,” Augie said.

The agricultural sector is critical to the economic growth and development of Nigeria as it will not only enhance the diversification and integration of the economy but also become a major source of foreign exchange earner for the country.