The Competitive African Rice Forum – Nigeria Chapter (CARF-FSD Nigeria) has warned the government about the gloomy future of Nigeria’s rice industry.
The group recently called for quick government intervention to reverse what is clearly a looming collapse of the sector.
Speaking during an interview with the press, the Chairman of the Board of Trustees of CARF-FSD Nigeria, Peter Dama, said that more than 13 million metric tons of domestic milling capacity are currently not being utilised as they should, and this has led to the increasing importation and smuggling of rice to our markets.
Dama stated that shunning our domestic production capacity has been forcing several local mills to close down, and farmers are even going as far as abandoning their harvests.
Speaking for his organization which represents a large network of rice farmers, millers, processors, marketers, non-governmental organisations and development partners, Dama confessed that policy fluctuation, rampant smuggling, and biased import waivers have done a lot of damage to 20 years of progress in the country’s rice self-sufficiency journey.
He believes that the Federal Government is not blameless amid the decline as well, referencing how its 180-day duty waiver on food imports, including husked brown rice, has done more harm than good.
According to him, after the duty waiver by the FG, lots of rural employments have been lost, particularly in major rice-producing states like Kano, Ebonyi, Plateau, and Kebbi, triggering joblessness among youths and women across these regions.
He confirmed that paddy demand reduced drastically as well, and it has since left farmers with lots of quality produce nobody is offering to buy.
“This waiver wiped out nearly a decade of hard-earned gains. It has crushed rural economies and reversed efforts to create inclusive, sustainable agricultural growth,” he said.
Dama further warned that if the situation continues, the looming collapse would definitely affect Nigeria’s economy negatively.
He then urged the FG to work on establishing a national rice buffer stock and market stabilization program, while improving customs enforcement to tackle smuggling along key corridors.
“This is no longer just an agricultural issue — it is a political, economic, and security flashpoint.
The Federal government should enhance customs enforcement to combat smuggling along key corridors. Establish a national rice buffer stock and market stabilization program.
Support paddy production through irrigation, mechanization, and access to low-interest agricultural financing. Launch a nationwide campaign to restore consumer confidence in Nigerian rice,” he added.
