With over N467.96 billion spent between 2019 and 2020 on rice importation, experts say the commissioning of a high grade rice processing centre by the Raw Materials Research and Development Council (RMRDC) would go a long way to save Nigeria some much needed foreign exchange; BINTA SHAMA reports.
Studies have shown that rice is one of the most consumed grains in the world specifically in Nigeria, with consumption per capita of 32kg. In the past decade, consumption is said to have increased with 4.7 per cent, almost four times the global consumption growth, hitting 6.4 million tonnes in 2017 – accounting for 20 per cent of Africa’s consumption. As at 2011, rice accounted for 10 per cent of household food spending, and 6.6 per cent of total household spending. Given the importance of rice as a staple food in Nigeria, boosting its production have been accorded high priority by the Muhammadu Buhari led government in the past 7 years. Significant progress has been recorded with rice production reaching a peak of 3.7 million tonnes in 2017.
Rice production
Further research showed that in 2020, rice, paddy production in Nigeria was 8.17 million tonnes. Rice, paddy production in the country increased from 388,000 tonnes in 1971 to 8.17 million tonnes in 2020, growing at an average annual rate of 8.74 per cent. Nigeria is said to have a fertile land to grow rice especially in the Northern part of the country with Kaduna being the highest producing State. It is estimated that, increasing the mechanisation rate in Nigeria from 0.3hp/ha to 0.8hp/ha in the next 5 years, can double rice production to 7.2 million tonnes. To achieve this, it is estimated that Nigeria will need to at least triple its current stock of machinery over the same period.
Importation to hit N901.93bn
Report from the Organisation for Economic Co-operation and Development (OECD) and Food and Agriculture Organisation (FAO) of the United Nation Agricultural Outlook available to MSMEsToday reveal that Nigeria’s spending on rice importation is projected to reach N901.93 billion by 2029 from N467.96 billion in 2019-2020 despite projected increase in production for the same period.
With 1.7 million out of 4.6 million hectares available for rice cultivation, it is stated that more than 12.2 million farmers involved in rice production across the country, added to different interventions of government at different levels to increase rice production, one would expect the amount spent on rice importation to have reduced drastically over the years, but the reality is that production still has a long way to meet demand.
There is a gap of about 3 million tonnes between rice demand and supply in the last 10 years. During this period, Nigeria’s rice production grew by 7.98 per cent, which is higher than the growth of 4.95 per cent in rice consumption, however the rise in growth rate of rice production could not meet up with the demand for rice consumption. The gap between rice supply and demand is projected to widen in the next years due to insecurity, Covid-19 pandemic; constrains like rain-fed water systems, limited use of inputs and inadequate farm infrastructure envisaged in the outlook are expected to impact production negatively.
With the widening gap in supply and demand ratio, rice importation is expected to increase like previous years. Between the periods of 2010-2019, Nigeria’s rice importation stood at 2.6mt with import bill on rice alone at N467.96 billion at international price of $435.3 per ton. The rice importation bill is projected to increase by 93 per cent or N433.97 billion by 2029.
RMRDC initiative
As part of efforts to promote the value chain potentials of Nigeria’s agro commodities and commit to the food security agenda of the federal government, RMRDC commissioned a high grade Rice Processing Center at Kwakuti, Niger State.
According to a statement from the RMRDC Press Department, the Director-General and Chief Executive Officer of the Council, Professor Hussaini Doko Ibrahim, pointed out that the rice processing centre was initiated and built to reduce rural poverty, create employment, achieve accelerated production and economic growth for women rice processing groups in the community on a sustainable basis.
The Council he said had embarked on the project in partnership with the Niger State Government through IFAD value chain development programme and various processors of commodities.
“The objective is to put up common facilities for the processors across board in Nigeria to reduce their operational costs even as the processors will have to pay a token for their commodities to be processed.
“The operation of this common facility will entail that the money realized from these charges shall be used to purchase spare parts, fueling, and payment of electricity and water bills.”
Furthermore, the Director General, who was represented by the Director Chemical Materials and Pharmaceuticals Department of the Council, Mrs. Hajara Tanko said the interest of RMRDC in cluster arrangements is to promote local raw materials processing for domestic use and export, explaining that the deliberate attempt by the Buhari administration to stop the importation of rice is yielding a lot of dividends.
“This is why we have totally resolved to give our widows mite in the establishment of rice clusters to promote local production and create employment opportunities for our teaming youths in Nigeria. And we will also like to appeal to beneficiaries of this project to continue to cooperate with one another for progress and further development of this cluster,” Prof Ibrahim said.
Also speaking at the commissioning, the Commissioner of Agriculture and Rural Development, Niger State Engr. Ibrahim Muhammad Panti acknowledged the collaboration between the IFAD Value Chain Development Programme Additional Financing and the Raw Materials Research and Development Council (RMRDC) saying it ensured the successful completion and equipping of the facility. He expressed optimism that the rice project would improve the quality and standard of the milled rice in the state to meet the requirement of the local and International markets.
Engr Panti noted that in the past, Kwakuti women processors lacked modern milling equipment to mill rice of international standard, stressing that the new rice processing plant was a welcome intervention which would provide an enabling environment for the training of women groups on False Bottom Technology to improve the quality of milled rice in the State.
He therefore called on beneficiaries of the intervention to take ownership and good care of the facilities provided to ensure its sustainability
Earlier, the Niger State programme Coordinator Value Chain Development Programme Dr. Mathew Ahmed said the aim of providing the infrastructure and equipment was to increase the income and food security for poor rural households.
He said efforts have been intensified to train rice processors on packaging to meet international standard while disclosing that processors have been supported with 50kg, 25kg, 20kg, 10kg and 5kg packaging materials branded for marketing.
He urged the women rice processors group to link up with NAFDAC and SON for certification of their products.
