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Nigeria And Self Sufficiency In Rice Production

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In a bid to mitigate the effect
of the ban on rice importation into Nigeria, President Muhammadu Buhari in June this year announced that his administration would make Nigeria self-sufficient in rice production within 18 months.
Speaking at the Ramadan breaking of fast with members of the business community, Buhari said 13 states of the federation had been identified for the production of the crop, pointing out that the Minister of Agriculture, Chief Audu Ogbeh, had already been briefed on how best to achieve the target.
He decried the way and manner the nation’s scarce resources were wasted on the importation of food items by the previous regimes, saying that the nation had no option than to concentrate more on agriculture and solid mineral activities.
The Minister of State for Agriculture and Rural Development, Senator Heineken Lokpobiri at a town hall meeting in Yenagoa, capital of Bayelsa State, said the reliance on imported food led to the astronomical rise in price of rice and other commodities, stressing that if Nigerians failed to produce some of the items being imported before December, the price of rice would skyrocket to N40,000 a bag.
According to him, Nigeria spends about $22 billion a year on importation of food, saying that a projection shows that the population of Nigeria would be 450 million by 2050 and wondered what would happen then if the people could not feed themselves now. We do not have enough dollars to fund the import because of low crude oil price and that is why you see the price of rice going up. Prices of rice was between N9,000 to N12,000 some months ago, but it is now about N26,000 and if we don’t start producing by December, it could be N40,000. Rice matures in three months, so this is a wake-up call for Bayelsa people to take the four farms we have serious. The Federal Government has four farms in the state in our records.
There is no rice farm in Rivers State and many other state. They have land to cultivate rice but no support from government. All states in the country should be encouraged to produce rice and give it priority attention. The North- West states such as Kebbi, Jigawa, Kano as well as other states like Lagos, Ebonyi, Anambra have prioritized it.
The Dangote Group of Companies is set to invest over N53 billion in the production of rice and sugar in Nasarawa State, said its President, Alhaji Aliko Dangote. He disclosed this recently in Lafia during an assessment tour of the investment potentials in the state.
Represented by Mr Abdullahi Sule, the company’s group managing director in charge of sugar production, Dangote said the company had set the machinery in motion to invest in Obi, Awe and Doma Local government areas of the state. He stated that the company would establish a rice mill and give agriculture and sugarcane outgrowers about 10,000 hectares and seed cane to enhance production, adding that the company has similar projects in Adamawa and Taraba States which had generated over 25,000 jobs, while expecting some to happen in Nasarawa.
On its part, the Korean International Cooperation Agency (KOICA) last year September completed its rice mill project in Bida and handed over same to the Federal Government. Its country Director, Mr Jung Sang-hoon told The Tide in Abuja that the project was initiated in 2007, but was halted for a while due to technical challenges the company encountered. “The company has several projects; we have rice processing centre in Bida and cassava processing centres in Kogi, Enugu and Ogun States, Sang-hoon said, adding “in case of the rice processing project, the delays came from our side; we were unable to find alternative replacement (contracting companies).
“In 2012, when I came, I made some reports. My new approach at the time was to find collective association of agriculture machinery production companies; they followed my advice and were able to resume. Now the process became very swift and prompt; virtually all the job has been completed.
Olam International, a Singaporean Company in 2012 commenced large-scale cultivation and processing of rice by the last quarter in Nasarawa State, the nation’s major rice growing state. The company announced that it invested $49.2 million in rice farming and milling in the state. Speaking to newsmen, the President of the firm, Mr Jajreev Raina said the investment established a 6,000 hectres of irrigated paddy farms and rice milling projects as the company’s first venture in rice production in the country.
Olam is a leading rice trader globally and has been working with several rice firms across the country but does not own any of them. The project provides 60,000 tones of paddy annually to the processing facility which had then been converted into 36,000 tonnes of milled rice. Industry analysts have descried the project as a big boost for the Federal Government’s drive to raise agricultural production towards food security for the rising population.
The Special Adviser on Media and Publicity to President Buhari, Mr Femi Adesina recently confirmed that the Federal Government had in 2014 signed a one billion dollars Memorandum of Understanding (MoU) for investment in integrated rice project with Dangote Industries Limited. Further to this agreement, Dangote Industries Ltd, this year cultivated over 8,000 hectares in Hadejia, Jigawa State, creating over 10,000 direct and indirect jobs for farmers who are the major beneficiaries of the scheme.
According to Adesina, the Buhari-led administration is also in partnership with the African Development Bank (ADB) and other reputable companies to tap into the vast potential in the private sector. This was aimed at broadening the economic base of the country.
“The gains of the diversification drive, especially in the agriculture sector, he said, are already yielding dividends as shown by the recent statistics in the sector published by the National Bureau of Statastics (NBS)”.
A social media report had accused the Federal Government and Dangote group of a plan to ‘flood’ the market with Genetically Modified rice (GMO). But the Special Adviser on Media and Publicity dismissed the report, describing it as the hand work of unscrupulous individuals who were bent on tarnishing the good image of the government. “It is therefore ridiculous that a government that is wholly devoted to the generation of employment for Nigerians, especially through agriculture will turn around to get involved in an activity that will reverse the gains of the same partnership”.
In a bid to stemming the tide of the effect of pests that attack cereal crops on the fields, especially rice, the federal government in 2014 approved a 50 hours serial spray of high risk areas in Kano State under attack of quelea birds. The aim was to reduce the amount of money spent by farmers employing traditional control methods. Rice farmers had lamented about the challenges the birds had posed to their farm output as a result of the attacks.
Rice is one of the staple foods for Nigerians and its supply and demand trend are imbalance. The production of rice in this country is expected to be more than 100 tonnes following an increase in the demand for the commodity. Rice production can earn Nigerian high foreign exchange if its farmers in the country are supported financially and materially. “Government agricultural loans will enable rice farmers acquire modern farming equipment as well as vast land for their business. The provision of irrigation infrastructure for rice farmers is necessary as rice can be scorched due to the lack of rain which also providing fertilizers at the appropriate time during the farming season”.
In order to make the ban on rice importation realistic, a Port Harcourt-based large-scale rice dealer, Eugene Aririeri, urged the Federal Government to ensure that local producers of rice are adequately empowered. He advised that for the federal government’s ban on importation of rice to be realistic in 2016, local rice farmers need to be empowered and encouraged, pointing out that the idea of banning the importation of rice is good, but that concrete steps must be taken by the Federal and state governments before the implementation of the ban.
According to him, the local producers of rice should be provided with adequate and highly subsidized agricultural loans, adding that these loans should only be given to genuine farmers while that should not be politicized. “The farmers should also be provided with adequate improved seeds, genuine fertilizers and other related farm imputs”. The rice dealer explained that by statistics, Nigerians consume more than 45 million metric tonnes of rice per annum, while 21 million metric tonnes of the commodity was being imported through back-door yearly, disclosing that Nigeria was the second largest importer of rice in the world in spite of large endowment of arable land suitable for rice production.
He maintained that locally produced rice was more qualitative with more nutritional value than imported rice.
If Nigeria is really committed to an ambitious programme for growth, to consolidate and increase the present levels of profitability through international expansion, and to further develop its agricultural business activities, there should be medium plan for rice production in the country. Ebonyi State has carved a niche for itself in the area of rice production. Its production has increased in the state and if given encouragement as well as other states, the problem of rice in this country will soon be a thing of the past.
Chief Anthony Ndubuka, a major rice dealer in Umuahia in an interview expressed optimism that the price of rice would soon fall in Nigeria, saying that the grains would become affordable as soon as farmers began to harvest the grains in the next few months. “I am confident that there will be a bumper harvest this year. So, by November, the price of the commodity will definitely come down”, he said, expressing concern that the astronomical price of rice had made it unaffordable in many homes. “Rice is a staple food in many families in Nigeria, it is children’s favourite, but the commodity has become unaffordable because of its astronomical price”.
Ndubuka traced the scarcity of rice to the ban on importation of the grains by the Federal Government, saying that the inability of the local rice producers to fill the gap caused by the ban compounded the situation. According to him, the scarcity posed serious challenges to rice farmers and manufacturers in the country. “Luckily, many farmers have braced the challenges, so there will be plenty of rice this year”, he said.
The Tide reports that the scarcity of foreign rice after the government’s ban led to increased demand for local substitutes. The rice dealer, Ndubuka, said although eh ban on importation of rice was expected to boost local production, government should have taken measures to bridge the gap. He added that it was still smuggled into the country in spite the ban, to evade arrest. Urging the Federal Government to give incentives to rice farmers, he said that would boost output and quality of the grains and make them affordable.
In Umuahia, a bag of local rice now sells for between N18,500 and N20,000 as against previous price of N5,000 and N6,000. The imported substitutes cost between N23,000 and N25,000 as against the previous N8,000 and N10,000 per bag.

 

Shedie Okpara

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Nigeria’s ETF correction deepens as STANBICETF30, VETGRIF30 see 50% decline in a week

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Nigeria directs all oil, gas revenues to federation account in sweeping reform
Nigerian President Bola Tinubu has signed an order directing that all oil and gas revenues owed to the government be paid directly into the federation account, in sweeping reforms aimed at boosting public finances, the presidency said on Wednesday.
Under the law, the Nigerian National Petroleum Corporation keeps 30% of oil and gas profits for frontier exploration in inland basins. The presidency said those funds will now be paid into the federation account and appropriated by the government.
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NNPC also retains 30% of oil and gas sales as operational costs and receives 30% of proceeds from Production Sharing Contracts. Under the new directive, all revenues under these arrangements will flow directly to the federation account, while the company will instead receive appropriated management fees.
Royalty payments, petroleum profit taxes and other statutory revenues previously collected and retained by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) will also be paid directly into the Federation Account. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) will likewise remit its revenues in full, with its cost of collection to be funded through appropriation.
Tinubu’s office said deductions enabled by the law had sharply reduced net oil inflows and contributed to fiscal strain across federal, state and local governments. The president also ordered a review of the law and established an implementation committee to enforce the changes.
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BOI Introduces Business Clinic 

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The Bank of Industry (BoI) has introduced a business clinic model designed to diagnose, treat and rehabilitate the Micro, Small and Medium Enterprises (MSMEs) to ensure long-term growth and sustainability.
The Divisional Head, Business Development, BoI, Dr Obaro Osah, made this known at the bank’s Thrive Summit with the theme: “Driving Growth through Innovation and Financial Empowerment” on Tuesday in Lagos.
Osah noted that traditional banking often treated businesses as mere account opening and management relationships.
He said the BoI business clinic model was created to reimagine the essence of a bank as a specialised teaching hospital.
According to him, just as a hospital requires a thorough diagnosis before service treatment/surgery, the bank must analyse the structural health of a small business before injecting capital.
“Financial distress is often just a symptom, the disease lies in operations and adopted philosophy, strategy, or governance,” he said.
Osah noted the many MSMEs, in spite of their potential, suffer from recurring ailments: restricted cash flow, poor operational structure, lack of proper packaging and market access, poor management among others.
He said the bank’s triage and vital signs included screening SMEs by maturity stage, pulse check to assess cash flow and liquidity and market temperature to evaluate competitive landscape.
Osah said after these evaluation, advanced diagnostics, prescriptions, surgical interventions and recovery and rehabilitation would be carried out where necessary.
“Prescription without diagnosis is malpractice and the Thrive Summit ensures we treat the root cause, not just the symptoms,” he said.
The Chief Strategy and Development Officer, BoI, Dr Isa Omagu, noted that MSMEs needed more than finance to succeed.
Omagu said they needed structure, advisory, capacity building, governance, digital readiness, access to market information and the right business infrastructure to operate and scale effectively.
He said as part of the bank’s 2025-2027 Corporate Strategy, the business clinic would expand BoI’s value proposition to broaden its products and services to better reach target segments.
Omagu said by offering structured business advisory and project development support, the clinic would enable the bank deliver deeper, more holistic value to MSMEs beyond financing.
“This vision of a structured, holistic business clinic; one that strengthens MSMEs across all core business functions and makes them more bankable, competitive, digitally enabled, and sustainable, is fully aligned with our strategic initiative to develop and roll out non-financial product offerings.
“Through this initiative, BoI commits to providing business advisory for MSMEs and project lifecycle support for enterprises, and the business clinic serves as the practical platform through which this commitment comes to life,” he said.
Omagu urged MSMEs to apply the guidance received to strengthen structure, governance, and financial management.
He added that they must adopt digital tools and improve internal processes to boost competitiveness while engaging BoI as a long-term partner in building a resilient, scalable business.
Mrs Eniola Akinsete, Divisional Head, Sustainability, BoI, said adopting Environmental, Social and Governance (ESG), principles often led to business prosperity.
Akinsete, however, noted that in spite of the benefits, adoption challenges persisted.
She affirmed BoI’s support on the adoption of ESG Practices by the MSMEs.
Earlier, the Executive Director, Corporate Finance, Sustainability and Investments, BoI, Mr Rotimi Akinde, said the summit represented a shared commitment to building a stronger, more resilient business ecosystem in Nigeria.
Akinde stated that the business clinic created a platform for practical knowledge sharing where entrepreneurs and small business owners could gain actionable insights to overcome challenges and seize opportunities.
He said discussions would focus on critical areas that drive sustainable growth, including branding and marketing, financials and activities, human rights, human resources, raising capital for equity and technology.
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Dangote signs $400 mln equipment deal with China’s XCMG to speed up refinery expansion

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Nigeria’s Dangote Group has signed a $400 million equipment deal with China’s Xuzhou Construction Machinery Group to speed up the expansion of its oil refinery toward a planned 1.4 million barrels per day, the company said on Tuesday.
The additional equipment is expected to support major projects under construction across refining, petrochemicals, agriculture and infrastructure.
Dangote said the XCMG agreement would allow it to acquire a wide range of new heavy-duty machinery to complement existing assets deployed for the refinery build?out, which the company expects to complete within three years.
As part of the expansion, polypropylene capacity will rise to 2.4 million tons per year from 900,000 tons. Urea production in Nigeria will triple to 9 million tons per year, alongside an existing 3 million-ton plant in Ethiopia, positioning the conglomerate as the world’s largest urea producer, the company said.
The output of linear alkyl benzene – a key raw material for detergents – will increase to 400,000 tons annually, making Dangote the biggest supplier in Africa. Additional base-oil capacity is also planned in the programme.
Dangote Group described the equipment deal as a strategic investment aligned with its ambition to become a $100 billion enterprise by 2030.
“The additional equipment we are acquiring under this partnership will significantly enhance execution across our projects,” it said in a statement.
Owned by Nigerian billionaire Aliko Dangote, the $20 billion refinery began operations in 2024 after years of delays. Once fully operational, it is expected to reduce Nigeria’s heavy dependence on imported refined fuel and reshape fuel supply across West and Central Africa.
Reporting by Isaac Anyaogu; Editing by Anil D’Silva
The Nigeria-Slovenia Chamber of Commerce on Thursday urged the Nigerian business community to explore business opportunities in Slovenia to widen their horizons.
The Tide source reports that the chamber made the call at its 2025 Last Quarter Business Forum held in Lagos State.
The forum is the chamber’s routine session aimed at informing businesses about the latest opportunities of mutual benefit between both countries, encouraging people to explore them to improve their livelihoods.
Speaking at the event, which was attended by businessmen and trade regulatory agencies, the Director-General of the Nigeria-Slovenia Chamber of Commerce, Mr Uche Udungwor, described the relationship between the two countries as a bilateral economy.
Udungwor said the body, established to build, promote and facilitate trade and investment activities between Nigeria and Slovenia, had positively impacted both nations.
He said the mandates of the chamber include: “To provide a forum representative of Nigeria and Slovenia’s interests for the development and improvement of commerce and industry between the two countries.
“Also, to create, promote and sustain broad exchanges and interactions in commercial, industrial and economic fields between the countries.
“To promote cooperation on technical and scientific innovations between institutions of the countries through the exchange of regular information on trade and investment opportunities.
“To advise members on opportunities, challenges, legislation or otherwise arising from the pursuit of trade between Nigeria and Slovenia, and to encourage the exchange of ideas and views on trade matters within the context of trade promotion between both countries.”
According to him, Slovenia’s major imports include organic chemicals, agro products such as cocoa beans, iron and steel/metal scraps, wood, and mineral fuels/petroleum products.
He said the trade balance between Slovenia and Nigeria is “not quite encouraging”, citing United Nations COMTRADE data indicating that Slovenia’s imports from Nigeria in 2022 amounted to $5.7 million.
Udungwor described the Republic of Slovenia, located in Central Europe with about 2.1 million inhabitants, as a promising business frontier for Nigerians.
He noted that the country features Alpine mountains, thick forests and a short Adriatic coastline.
“Slovenia, which borders Italy to the west, Austria to the north, Croatia to the south and southeast, and Hungary to the northeast, has a 2024 GDP of 72.49 billion dollars, a sound economy and a low-risk business environment.
“Slovenia has been a member of the European Union since 2004 and of the Schengen Group since 2007. It is also a member of the Organisation for Economic Co-operation and Development (OECD).
“Slovenia today is a stable, vibrant democracy that offers a stimulating business environment and represents a bridge between the Balkan, Central European and Western European countries.
“The Nigeria-Slovenia Chamber of Commerce is at your service to provide up-to-date information and advice about Slovenia’s economy, business opportunities, companies, products and services for the mutual benefit of all,” he said.
A participant, Mr Muyiwa Ajose, said his partnership with the chamber had bolstered his agro exports to Slovenia.
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