There’s need to sustain the efforts in local rice production

Nigeria, Africa’s biggest economy, is testing new grounds on import substitution for rice production as the country hopes to replicate the success recorded with its cement industry.

Nigeria’s economy decelerated to a 25-year low in 2016, after oil revenues collapsed, and officials have picked unwavering interest in the agricultural sector as the country attempts revenue diversification and import substitution.

With this, the country hopes to shore up its foreign reserves, boost local production and create employment for its fast-rising youth population.

Nigeria imports almost everything, from toothpicks to refined petroleum products, despite being Africa’s largest oil producer.

In order to curtail the country’s heavy import reliance and reduce the deleterious effects of excessive importation, the Muhammadu Buhari-led government restricted some 41 items from accessing foreign exchange (FX) since June 2015 to discourage importation.

Since then, Nigeria’s rice produce is gaining acceptance at home, aided by improved production and milling capacity.

A 2016 report by the Growth and Employment in States (GEMS4) put Nigeria’s total paddy production at 17. 5 million metric tonnes which was milled into 5.7 million MT of rice, thus bringing Nigeria’s rice production closer to the projected demand of 7 million tonnes by the country’s agricultural roadmap.

Number of both integrated and cottage rice mills in the country has increased by more than 50 percent in recent months as government and private sector continue to make more investments in processing.

The average crop yield per hectare of rice has risen from 2.5 metric tonnes to an average of 4 to 5 metric tonnes of the same acreage owing to renewed government commitment.

To protect local investments, the Federal Government banned importation of rice through land borders and increased levy on rice importation through the seaports.

States and local agro firms are already boosting production through direct investments in milling plants.

In 2016, Lagos and Kebbi States signed a Joint Venture (JV) agreement for the establishment of a modern and commercially-viable rice milling complex, which will have the capacity to process and mill 20 tonnes of rice per hour.

Apart from Lagos and Kebbi, Cross River, Benue, Kano and Kaduna States have also been home to new investments in rice. Early in 2016, Thai-African Corporation berthed in Calabar, Cross River State, for the development of Rice City in the state.

Experts say these efforts need to be sustained in the long term if Nigeria hopes to reap the full benefits of these ongoing investments.

JOSEPHINE OKOJIE

The writer can be reached via jojookojie@yahoo.com or 08029640010