The Federal Government of Nigeria recently convened a technical consultation with key stakeholders to strengthen the country's rice value chain. This move is part of President Bola Ahmed Tinubu's commitment to enhancing food security, domestic production, farmer livelihoods, private-sector investment, and consumer affordability. The consultation was coordinated by the Presidential Food Systems Coordinating Unit (PFSCU).
The meeting brought together representatives from Federal and State institutions, major rice-producing states, relevant Federal institutions, farmers, processors, millers, and industry associations. The engagement provided an opportunity for the government and industry stakeholders to take a comprehensive view of the rice value chain. Discussions covered domestic rice production, cultivated area and yields, farmer economics, paddy and milled-rice prices, processing and milling activity, public and private stocks, trade flows, financing, and investment.
Stakeholders highlighted the high cost of production as a major constraint to competitiveness, with rice production costs reported at about ₦2.2–₦2.3 million per hectare. Fertiliser accounts for approximately 35 percent of production costs. Other key pressures across the value chain include high energy and irrigation costs, limited access to appropriately priced long-term financing, post-harvest losses, and inadequate distributed storage.
To address these challenges, stakeholders called for greater investment in irrigation, including solar-powered water systems, to support year-round production. They also stressed the need for stronger financing and refinancing options for viable mills and processors, improved storage and aggregation infrastructure, and measures to reduce production and logistics costs.
Participants emphasized the importance of predictable trade and import decisions that reflect domestic production cycles. They noted that persistent price differentials can create incentives for smuggling. The engagement further underscored the need for an integrated food-market data framework covering production, stocks, imports, consumption, and prices.
The consultation will inform a consolidated technical report on the current dynamics and status of the rice value chain. This report will include the food balance, market conditions, production economics, financing and investment environment, and priority actions for strengthening the sector. Mohammed Auwalu, Vice President of the Rice Farmers Association of Nigeria (RIFAN), welcomed the government's continued engagement with stakeholders across the rice value chain.
The exercise is part of a broader approach to periodically review key staple food value chains, recognizing that production, markets, and consumer conditions evolve. These reviews will support timely coordination across the food-balance levers and help the government sustain food availability and affordability, protect farmer livelihoods, strengthen investor confidence, and build a more resilient and competitive food economy.
Key points
- The Nigerian government has convened stakeholders to strengthen the country's rice value chain, focusing on food security and domestic production.
- High production costs and limited access to financing are major constraints to the competitiveness of Nigeria's rice sector.
- The government aims to enhance food availability, affordability, and farmer livelihoods through the strengthened rice value chain.
