By : Collins Olayinka, Abuja

The domestic capacity of rice production has plummeted to 5.3 million from a historic eight million metric tonnes, the Competitive African Rice Forum – Nigeria Chapter (CARF-FSD Nigeria) has revealed.

Chairman of the group’s Board of Trustees, Peter Dama, disclosed that local rice farmers had developed their capacity, and were able to meet national needs during the COVID-19 pandemic, and currently, are on the verge of bankruptcy due to government policies.

The farmers said the value chain was adversely affected by the tax-free import, decrying what they termed ‘selective waivers, smuggling, and market distortions’ to save rice farming from total collapse.

The CARF-FSD Nigeria represents a broad coalition of rice farmers, processors, millers, marketers, Non-Governmental Organisations (NGOs) and development partners.

Dama said: “We are sounding the alarm over the existential threat facing Nigeria’s rice value chain due to policy distortions, selective import waivers, and unchecked smuggling. Nigeria’s rice industry, which has seen over two decades of growth through public-private investments, now faces a potential collapse if immediate corrective actions are not taken.”

He hinted that over 13 million metric tonnes of domestic milling capacity have been installed nationwide, which is more than enough to meet and even exceed national demand.

The BoT chairman lamented that the productive capacity is now grossly underutilised, as imported and smuggled rice floods the market.

He insisted that the 2024 waiver undermined a decade of progress, stating: “In July 2024, the Federal Government granted a 180-day duty waiver on the importation of key food items, including husked brown rice, which took effect in 2024.

While intended to temporarily reduce food prices and combat hoarding, the waiver unintentionally triggered a sharp downturn in the local rice market.”

According to him, paddy demand has collapsed, leaving farmers with unsold harvests, while local mills scaled down or shut down operations as a result of their inability to compete with subsidised imports.

Dama added that rural job losses are increasing across rice-producing states like Kebbi, Kano, Ebonyi, Plateau, Nasarawa, Jigawa, Ekiti, Benue, Akwa Ibom, and Adamawa, among others.

He submitted that youth employment and female-led processing clusters had been decimated, reversing years of economic inclusion efforts.

Beyond waivers, Dama explained that massive inflows of smuggled rice continue to saturate Nigerian markets through the porous borders.

Published Date: May 26, 2025