It is a fact that Nigeria is the world’s largest importer of rice, accounting for about 25 per cent of all rice imports into sub-Saharan Africa. Parboiled rice imports from Thailand alone range between $700 million and $800 million per year. Additional tonnages come from India, China and the United States, with broken rice (rice broken in the milling process) imported from Senegal. Of the estimated 5 million metric tons annual demand for rice in the country, 2.1 million MT is imported.
It is a fact that Nigeria is the world’s largest importer of rice, accounting for about 25 per cent of all rice imports into sub-Saharan Africa. Parboiled rice imports from Thailand alone range between $700 million and $800 million per year. Additional tonnages come from India, China and the United States, with broken rice (rice broken in the milling process) imported from Senegal. Of the estimated 5 million metric tons annual demand for rice in the country, 2.1 million MT is imported.
The Minister of Agriculture and Rural Development, Dr. Akinwunmi Adesina, admitted that the amount of money the Federal Government is spending to make rice available to consumers may rise to $150 billion (about N23.4 trillion) annually by 2050 based on the projection of 36 million metric tonnes.
This certainly is a scary statistics, which probably necessitated the current policy reversal which favours local cultivation of the staple food item.
The Association of Rice Importers of Nigeria suggests that as huge as the figure is, it does not take into account the high volume of rice smuggled into the country through an interminable variety of routes.
Some of the notable routes through which smuggled rice flood Nigeria include entry points such as: Maradi and Zinder in the North as well as Seme and Idi-Iroko in the South West geo-political zones of the country.
The combined factors of higher tariff and the attendant high market prices have encouraged smugglers to bring in large volumes of rice into Nigeria with zero duty. Without doubt, this has negatively affected the Federal Government’s efforts to make Nigeria self-sufficient in rice production by 2015.
In fact, rice-millers in the country recently estimated the loss to smugglers at N9.7 billion monthly. The implications are inimical to the health of the economy. First, this free-for-all trade negates the Federal Government’s desire to increase local production, with the expected promise to create employment, generate more income and enhance the value chain that would benefit not a few entrepreneurs.
According to another group; the Patriotic Rice Association of Nigeria (PRAN), “massive and incessant smuggling of rice into the country had thrown the rice industry into turmoil with severe consequences for government revenues, the economy and future plans for rice self-sufficiency.”
The association, in a statement, said given the free reign enjoyed by rice smugglers, “a bleak future lies ahead of local rice-growers and traders legitimately involved in rice trade.”
While tracing the origin of this sad economic development, the group said: “The Nigerian rice industry seems to have been thrown into turmoil since the import tariffs were increased exponentially effective January 2013. Matters have got complicated further with the reported inability of Nigeria Customs to control smuggling of rice across the country’s borders with Benin.
“The Nigerian rice consumers are in the process shortchanged with inferior brands being smuggled and then re-bagged into quality brands and sold at higher prices.”
The irony is that the nation has the capacity to produce enough rice to meet local demand and even more for export. This is well known and there have been efforts to boost local production and milling and end the suffocating dependence on food imports. The missing link has been the ability to design a workable comprehensive programme and to stick to it to the very end until it
According to agriculture experts, although local rice cultivation should provide sustainable wellbeing for producers, processors and marketers in Nigeria, it does not satisfy the totality of consumer demand in the country.
As at 2009, Nigeria was importing an average of 1.7 million tonnes of white rice, making the country as the world’s second-largest rice importer then. The cost of these rice imports represents a significant amount of lost earnings for the country in terms of jobs and income.
Paddy rice is generally grown by small farmers in Nigeria where over 30 per cent of rice-growers cultivate less than one hectare, and close to 60 per cent less than five hectares. Although the paddy harvest rose from under one million tonnes in the 1970s to 4.2 million tonnes in 2010, production has not kept pace with demand. There is considerable potential for extending and intensifying rice production in the five rice-growing ecosystems found in Nigeria (plateau, rain-fed plains, irrigated plains, lowlands and mangrove). The land area that could be cultivated is roughly 79 million hectares. Less than 10 per cent of the 3.4 million hectares that could be irrigated are currently irrigated. Rice yields in irrigated areas are between three and 3.5 tonnes/hectare (t/ha), much lower than the potential yields estimated at between seven and nine t/ha. This production gap could be bridged by introducing improved varieties, with better use of water resources and integrated management.
We recall quite vividly that, as far back as the 1980s, especially during the heady days of the Second Republic, the Shehu Shagari-led administration made frantic efforts at importing rice from various countries.
The mistake made at that time was that the focus was on massive importation, rather local production. The mass importation that was embarked upon at that time encouraged preference for all grades and types of foreign rice.
The glaring fact of smuggling and the attendant loss of revenue is already taking its toll on government, hence the decision to review the policy.
We consider the move as a well-thought-out one, given the fact that the nation’s local capacity can not as yet meet the demand. When this is juxtaposed with the fact that smugglers are currently capitalizing on the 110 per cent tariff to embrace Cotonou port, from where the consignments find their ways into Nigeria markets.
We are certainly not in support of a premature ban on imported rice until certain minimum conditions are met. The first is that local production and milling capacity must be sufficiently high or well on its way there before any sweeping ban.
It is commendable that the Ministry of Agriculture has commenced a programme to equip 230,000 rice farmers in 10 states for dry season farming among other initiatives.
However, it is very obvious that not enough consultations were embarked upon by the Government before introducing the new policy.
Now that the same government is contemplating a reduction in the tariff, it is advisable that stakeholders are engaged on the new direction of the policy.
The parley is very important if the 2015 self-sufficiency in rice production target is to be achieved
We also believe that the 100 large-scale integrated rice mills with a 2.1 million metric tonnes capacity is achievable.
Also very important is the need to provide the enabling environment of stable electric power supply and good access roads to reduce overhead costs on production and processing.
It is obvious that the ultimate objectives of the rice policy are; attaining food security, reducing the import bill, modernising agriculture and fostering industrialisation and creation of jobs.
To achieve these, appropriate organs and personnel of government must keep their eyes on the ball.
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