Nigeria’s once-thriving rice industry is now on the brink of collapse as a surge in cheap rice imports, worsening insecurity, and dwindling government support devastate local production, forcing mill closures and widespread job losses
In an exclusive interview with our correspondent, the Chairman of the Competitive African Rice Forum Nigeria, Peter Dama, sounded the alarm, revealing how local rice processors are shutting down in droves, workers are being laid off, and investments are disappearing due to unfair competition from imported rice flooding Nigerian markets.
“Our mills have been shut down. We have retrenched workers. Is this the future for us in this country?” Dama lamented. He recalled that just a few years ago, Nigeria achieved a significant milestone, producing up to eight million metric tonnes of rice — a volume that nearly satisfied domestic consumption.
According to him, this progress has been reversed, largely due to insecurity across major rice-producing belts. “Banditry and kidnapping disrupted farming. That’s when production dropped significantly,” he explained.
Dama dismissed reports suggesting that past rice pyramids showcased in Abuja and other parts of the country were mere propaganda. “Those pyramids represented real output. Paddy was produced, distributed, milled, and sold. Payments were made. The industry was functional,” he said.
He also defended farmers who benefitted from government intervention schemes, stating that many of them put the support to effective use, contrary to public perceptions that funds were mismanaged.
Despite past achievements, Nigeria’s current rice output has plummeted. The country, which once neared self-sufficiency, is now struggling with a wide production-consumption gap. Dama revealed that while the nation consumes approximately 8.5 million metric tonnes of rice annually, local production has dipped below 5.3 million metric tonnes.
One major factor crippling local production is the influx of cheap imported rice, mostly brought in through porous borders or under questionable import waivers.
“Imported rice is cheaper because importers benefit from subsidies abroad and evade taxes here,” Dama said. “Some bring rice into Nigeria at as low as $10 to $20 per tonne, making it impossible for local producers to compete.”
The consequences are far-reaching. With many rice mills shut down and production in decline, thousands of workers — particularly youth in rural areas — are losing their livelihoods. Dama warned that this trend could have serious implications ahead of the 2027 general elections.
“The loss of jobs, rural income, and opportunities could spark unrest, increase rural-urban migration, and put pressure on urban infrastructure. It’s also likely to cause widespread disillusionment with government policies,” he said.
To save the rice sector, stakeholders are calling for urgent government intervention. Top among their demands is the immediate revocation of selective import waivers on rice and related commodities.
“End all backdoor waivers. All trade incentives should be transparent, time-bound, and equitable,” Dama insisted.
He also called for the reinstatement of rice as a strategic protected crop and advocated for the creation of a national rice buffer stock system to stabilise market prices and protect farmers during harvest seasons.
In addition, rice farmers are asking for:
Increased investment in irrigation infrastructure to enable multiple cropping cycles;
Subsidised access to quality farm inputs;
Expanded mechanisation support; and
Accessible, low-interest agricultural financing schemes to help farmers scale up operations.
Nigeria’s rice revolution, once a beacon of self-reliance and job creation, now stands at a critical crossroads. Unless decisive action is taken, stakeholders warn that the collapse of the local rice industry could become a national food security crisis.
For now, rice farmers are left grappling with a bleak reality — one where the land is fertile, but the future remains uncertain.