Nigeria’s rice industry under threat, stakeholders warn

• Urge end to selective waivers, smuggling

From Adanna Nnamani, Abuja

Stakeholders have raised the alarm over the looming collapse of Nigeria’s rice value chain, warning that recent government policies and unchecked smuggling could erase decades of progress in the sector.

The Competitive African Rice Forum, Nigeria Chapter (CARF-FSD Nigeria), a coalition of farmers, processors, millers, marketers, NGOs, and development partners, sounded the alarm at a press conference in Abuja over the weekend.

The group, led by its Chairman, Peter Dama, decried that despite efforts to install capacity to meet and surpass Nigeria’s rice demand, the sector is now underutilised due to market distortions caused by policy decisions and illegal imports.

Dama described the Federal Government’s July 2024 decision to grant a 180-day duty waiver on food imports, including husked brown rice, as a major blow to the domestic rice industry.

According to the Chairman, the waiver, intended to curb food inflation and discourage hoarding, instead triggered a sharp decline in local market activity.

He said farmers were left with unsold paddy rice, mills were forced to scale down or shut operations, and job losses surged in key rice-producing states.

Dama also highlighted large-scale rice smuggling through Nigeria’s porous borders as a huge barrier to the growth of the sector.

He noted that these illegal imports not only undermine the competitiveness of legitimate businesses but also pose health and safety risks due to a lack of regulation.

“Smuggling has erased market confidence for smallholder farmers, cooperatives, and agribusinesses who play by the rules,” the Chairman added.

CARF-FSD Nigeria further warned of the broader political and security implications of the industry’s decline, especially with the 2027 elections approaching.

The collapse of the rice sector, it said, could fuel rural unrest, drive mass migration to already overcrowded cities, and create widespread discontent, thereby threatening national stability.

The forum called on the federal government to take urgent action to safeguard the industry. It urged a halt to selective import waivers and a reaffirmation of rice as a strategic crop deserving of consistent policy protection.

The group also advocated for stronger border enforcement to combat smuggling, the establishment of a national rice buffer stock to stabilise market prices, and increased support for local paddy production through irrigation, mechanisation, and affordable financing.

Additionally, it stressed the importance of rebuilding consumer confidence in Nigerian rice through targeted awareness campaigns.

“Nigeria’s rice value chain is not the source of food inflation; it is the most scalable, inclusive, and viable solution available. If protected and empowered, the industry can feed the country, reduce import dependence, create jobs, and anchor rural development.

“CARF-FSD Nigeria has been supporting the government and is always ready to support the government in building a rice-secure, economically stable, and politically safe Nigeria,” it stated.