On January 18, 2022, the Central Bank of Nigeria (CBN) and the Rice Farmers Association of Nigeria (RIFAN) made headlines with the unveiling of the iconic rice pyramids in Abuja.
This event symbolized Nigeria’s progress in rice production, driven by the Anchor Borrowers Programme (ABP).
However, three years later, Nigeria’s rice self-sufficiency narrative has been reversed, with the country once again relying on imports to meet demand.
The Anchor Borrowers Programme: A Promising Start
Under the leadership of the then-CBN Governor, Godwin Emefiele, the ABP aimed to reduce Nigeria’s reliance on rice imports by empowering local farmers and millers. By the end of 2021:
According to Vanguard, 4.489 million farmers were financed, cultivating 5.3 million hectares across 36 states.
Integrated rice mills surged from six in 2015 to over 50 by 2021.
Thailand’s rice exports to Nigeria dropped from 1.3 million metric tons in 2014 to just 2,160 metric tons in 2021.
Local rice production increased from 5.4 million metric tons in 2015 to over 9 million metric tons in 2021.
Despite this success, rice prices rose significantly due to demand-supply gaps and economic challenges.
Current State of Rice Production and Challenges
By 2024, rice production declined to 8.1 million metric tons, falling short of the 10 million metric tons required annually due to:
Insecurity: Ongoing violence disrupted farming activities.
High Input Costs: Fertilizers and other farming essentials became unaffordable.
Currency Devaluation: Increased the cost of imported inputs, impacting local production.
Climate Change: Unpredictable weather patterns led to reduced yields.
Policy Inconsistencies: Unstable agricultural financing and trade policies affected investment.
Impact of Rising Food Inflation
Food inflation reached a record 39.93% by November 2024, driven by:
Increased prices of staples like rice, yam, maize, and palm oil.
Rising costs of transportation and inputs.
A 50-kg bag of rice, which cost ₦8,500 in 2015, rose to ₦95,000–₦105,000 by late 2024, making rice unaffordable for many Nigerians.
Government Interventions: Limited Success
President Bola Tinubu’s administration declared a food security emergency in July 2023 and approved a 150-day duty-free window for rice, maize, and wheat imports in 2024. While this initiative temporarily increased supply, critics argue that it:
Undermined local farmers by making imported rice cheaper.
Failed to significantly curb food inflation due to insufficient implementation.
Recommendations for Reviving Rice Production
Experts and stakeholders suggest the following:
1. Security Enhancements: Deploy security forces to protect farming zones.
2. Investment in Irrigation: Develop irrigation infrastructure to support year-round farming.
3. Input Subsidies: Provide affordable fertilizers and mechanization tools.
4. Policy Stability: Maintain consistent policies to attract private sector investments.
5. Climate-Smart Agriculture: Promote resilient crop varieties and sustainable farming practices.
6. Market Regulation: Prevent exploitation by regulating rice prices during scarcity.
The Way Forward
Nigeria’s journey toward rice self-sufficiency requires addressing systemic issues in production and distribution.
With its vast arable land and resources, the country has the potential to become a global rice exporter.
A renewed focus on sustainable agricultural practices and long-term policies will be crucial to achieving this vision.