The history of Nigeria’s rice production has been marked by significant developments, especially the co-launch of the Rice Pyramids in January 2022 by the Central Bank of Nigeria (CBN) and the Rice Farmers Association of Nigeria (RFAN). This event was a proud moment, signaling the country’s strides in reducing its dependency on rice imports, as part of the Anchor Borrowers Programme (ABP) led by the CBN. The ABP was designed to help local farmers increase rice production by providing financing and support, aiming for self-sufficiency and even potential exportation. This program resulted in a sharp decline in rice imports and a rise in domestic production, with rice mills increasing from six in 2015 to over 50 by 2021.
However, in recent years, challenges such as insecurity, high exchange rates, and fluctuating government policies have impacted production and affordability. Despite initial successes, food inflation in Nigeria continues to rise, with rice prices escalating from about N8,500 per 50-kg bag in 2015 to N95,000–N105,000 by the end of 2024. The Federal Government introduced measures like the zero-tariff importation initiative, which did not fully succeed in stabilizing prices due to bottlenecks, lack of transparency, and inefficiencies in the implementation process.
The key factors hindering Nigeria’s ability to achieve rice self-sufficiency include low yield, poor mechanization, inadequate irrigation, and ongoing insecurity. Stakeholders in the rice value chain have emphasized the need for increased investments in irrigation, security, and mechanization, alongside a more robust policy framework to drive sustainable production.
Local initiatives, like those in Lagos State, are working to address food security by building food logistics infrastructure and fostering collaborations with food-producing states. Despite these efforts, Nigeria’s rice industry still faces significant challenges in meeting domestic demand, which has outstripped local production, contributing to the price hikes.
The long-term solution may lie in adopting a regional approach to rice production, leveraging each state’s unique advantages and encouraging local government involvement, alongside private sector investments.
