By Jane Okeke
Nigeria’s rice industry — once hailed as a model of agricultural transformation and self-sufficiency — is now teetering on the brink of collapse. In a strongly worded statement issued over the weekend, the Competitive African Rice Forum – Nigeria Chapter (CARF-FSD Nigeria) warned that policy distortions, selective import waivers, and unchecked smuggling are crippling the nation’s rice value chain.
The forum, which represents a coalition of rice farmers, processors, millers, marketers, NGOs, and development partners, said more than 13 million metric tonnes of domestic milling capacity now lie grossly underutilized due to what it termed “market distortions that undermine local productivity.”
The flashpoint came in July 2024, when the Federal Government granted a 180-day duty waiver on key food imports — including husked brown rice — in a bid to ease food inflation. While well-intentioned, the move has had disastrous effects on the local industry.
“The waiver undermined over a decade of public and private investment in local rice production,” said Peter Dama, Chairman of the CARF-FSD Nigeria Board of Trustees. “Paddy demand collapsed almost overnight, and mills were forced to shut down or drastically scale back.”
The ripple effects have devastated communities across major rice-producing states, including Kebbi, Kano, Ebonyi, Plateau, Nasarawa, Jigawa, Ekiti, Benue, Akwa Ibom, and Adamawa.
“Youth employment and women-led processing clusters have been wiped out,” Dama lamented. “This is not just an economic issue; it’s a social crisis in the making.”
Even more concerning, the forum noted, is the continued surge in smuggled rice entering the country through porous borders. Often substandard and unregulated, these illegal imports are undermining local producers and posing food safety risks.
“Smuggling has erased confidence from the market,” said Halima Yusuf, a rice processor in Kano. “We’re competing with criminals, not fellow farmers.”
CARF-FSD Nigeria warned that smuggling is now a national security threat, as border communities are increasingly exposed to the influence of criminal networks and illicit trade.
With the 2027 general elections approaching, stakeholders are warning that the decline of the rice sector could become a political and security flashpoint. Rural discontent, youth unemployment, and increased migration to cities could fuel unrest and weaken national cohesion.
“The erosion of livelihoods in the rural economy threatens everything from food security to political stability,” said Dr. Emeka Ogbonna, an agricultural economist based in Abuja. “The rice industry should be a shield against inflation, not its victim.”
To reverse the decline, CARF-FSD Nigeria is urging the government to take the following urgent steps:
End selective import waivers and ensure trade incentives are transparent, time-bound, and equitable.
Reaffirm rice as a strategic crop, deserving of consistent protection and investment.
Tighten border enforcement through a strengthened Nigeria Customs Service and rapid-response border security units.
Establish a national rice buffer stock to stabilize prices and reduce volatility.
Support irrigation infrastructure, mechanization, affordable agricultural inputs, and low-interest financing for paddy farmers.
Launch a public awareness campaign to rebuild consumer trust in Nigerian rice.
“We are not asking for favors; we are asking for fairness,” Dama said. “The Nigerian rice industry is not the cause of food inflation — it is the most scalable and inclusive solution available. But it must be protected.”
CARF-FSD Nigeria emphasized its commitment to partnering with the Federal Government to build a stable, rice-secure future.
“If empowered, this industry can feed the country, create millions of jobs, and drive rural development,” the forum said in its closing statement. “But if neglected, it may become a catalyst for wider instability.”
As the government weighs its next move, the message from Nigeria’s rice stakeholders is clear: time is running out to save one of the nation’s most critical agricultural sectors.
Rice Industry: Stakeholders urge govt to end waivers, smuggling, to save 5 million jobs
