by Busola Aro

After valuing the cultivation of a hectare of rice at between N2.2 million and N2.3 million, the federal government and stakeholders in Nigeria’s rice value chain are seeking ways to reduce production costs.

The figures were disclosed on Tuesday at a technical consultation on the country’s rice value chain organised by the presidential food systems coordinating unit (PFSCU).

The consultation brought together government agencies, rice-producing states, farmers, processors, millers and industry associations to examine production costs, prices, stocks, trade, financing, and investment in the sector.

The participating stakeholders identified high production costs as a major constraint to the competitiveness of Nigerian rice.

“Rice production costs [was] reported at about N2.2–N2.3 million per hectare and fertiliser accounting for approximately 35 percent of production costs,” a statement signed by Marion Moon, executive secretary of the PFSCU, reads.

“High energy and irrigation costs, limited access to long-term financing, post-harvest losses and inadequate storage were also identified as challenges across the value chain.”

According to the statement, the participants called for increased investment in irrigation, including solar-powered water systems, to support year-round production.

Stakeholders also called for stronger financing and refinancing options for viable rice mills and processors, as well as investment in storage and aggregation infrastructure.

They said reducing production and logistics costs would be critical to improving the competitiveness of local rice.

They also called for predictable trade and import decisions that take domestic production cycles into account.

On his part, Mohammed Auwalu, vice-president of the Rice Farmers Association of Nigeria (RIFAN), said bringing farmers, processors, state governments, and federal authorities together was important for the sector.

“We welcome Government’s continued engagement with stakeholders across the rice value chain,” Auwalu said.

“Bringing farmers, processors, States and Government together around the full food balance is important for strengthening coordination across the sector and supporting continued production and investment.”

The stakeholders said persistent price differences between local and imported rice could create incentives for smuggling.

The consultation was coordinated by PFSCU following a directive from its steering committee at its seventh meeting, chaired by the Vice-President Kashim Shettima.

Published Date: September 24, 2026