Nigeria can double rice output in seven years

Doubling of Nigeria’s current annual-production output of rice is possible between 5 and 7 years,said participants at the Nigeria’s Economic Summit Group’s (NESG’s) Training and Awareness Retreat held in Abuja.

"Nigeria is the largest producer of rice in Africa, producing 4.2 million metric tonnes on 2.8 million hectares of farm land. But Nigeria is also the largest importer of rice in Africa accounting for 25 per cent of Africa’s import – importing between 1.5 and 2 million metric tonnes of rice per annum," OLAM Nigeria Limited, a frontline commodity exporter and rice grower stated in its paper delivered at the Abuja retreat.

OLAM said doubling of Nigeria’s rice production is achievable within 5/7 years with private investment. It argued that "there is a large gap in yield and quality levels compared with other similar companies, therefore there is no other way to go but up."

OLAM noted that the private sector is interested in investing in the sector, where only one-third of arable land is cultivated. It said the sector can make possible foreign exchange saving of between $600 million and $800 million through import substitution yearly, plus export opportunity – which can bring about a impact of more than $1 billion annually on foreign exchange reserves.

Hitherto local farm yields of rice in Nigeria are 1.5 metric tonnes per hectare and the quality is unacceptable in urban markets. It is characterized by subsistence farming, low inputs, non-certified seeds, manual labor, low level of knowledge and training, single harvest, lack of irrigation facilities, etc.

There is very little investment in this sector. Private sector focused solely on trading/imports until 2003. Some investments were made in rice mills from 2004 onwards and currently four large scale rice mills are lying dormant. Most of the domestic rice milling is small scale cottage industry, producing poor quality and recording high unit operating cost.

OLAM’s vision for Nigeria regarding rice by 2015 is an average yield of 3.5 metric tonnes per hectare and a total annual production of 10 million metric tonnes ...

In 2005, the Federal Government announced it would ban importation of rice into Nigeria effective from January 2006. This decision rattled the Rice Dealers Association of Nigeria (RIDAN), which succeessfully lobbied for the shelving of the plan until January 2007. That date has come and gone, stakeholders still feel time is not ripe yet for a ban on importation of rice.

Tao heed Ademola Shogun, president, RIDAN, said when confronted with the issue, "We are waiting for Government. There is no policy on it yet."

In fact, they cannot continue with the ban because it is against the World Trade Organisation directive on free trade. But one may want to ask if the WTO directive in question is sacrosanct when there is no level playing field for players in the international trade arena.

For Regi George, business manager for OLAM Nigeria Limited, "basically, a (import) ban must come but Nigeria is not ripe for it now, it may take a few more years – 3 to 4 years for Nigeria reach this level."

Business Day Nigeria