Rice industry under threat by selective waivers, smuggling, others, stakeholders tell FG

Competitive African Rice Forum, Nigeria Chapter, weekend, raised alarm that the Nigeria rice revolution is under threat as the industry is faced selective waivers, smuggling and market distortions. This was made known in a statement signed by the Chairman, Board of Trustees, CARF-FSD Nigeria, Peter Dama. He said it has became imperative to sound “the alarm over the existential threat facing Nigeria’s rice value chain due to policy distortions, selective import waivers, and unchecked smuggling.” According to Dama,  Nigeria’s rice value chain is not the source of food inflation, it is the most scalable, inclusive and solution available. If protected and empowered, the industry can feed the country, reduce import dependence, create jobs, and anchor rural development.
He also said CARF-FSD Nigeria as a broad coalition of rice farmers, processors, millers, marketers, NGOs, and development partners, has been supporting the government and is always ready to support the government in building a rice-secure, which is economically stable, and politically safe for Nigeria. He said “Nigeria’s rice industry, which has seen over two decades of growth through public-private investments, now faces a potential collapse if immediate corrective actions are not taken. Over 13 million metric tonnes of domestic milling capacity have been installed nationwide — enough to meet and even exceed national demand.  However, this productive capacity is now grossly underutilized as imported and smuggled rice floods the market. The 2024 Waiver Undermined a Decade of Progress: In July 2024, the Federal Government granted a 180-day duty waiver on the importation of key food items, including husked brown rice, which took effect in 2024. While intended to temporarily reduce food prices and combat hoarding, the waiver unintentionally triggered a sharp downturn in local rice market activity: Paddy demand collapsed, leaving farmers with unsold harvests.
“Local mills scaled down or shut down operations, because of citing an inability to compete with subsidized imports. Rural job losses mounted across rice-producing states, including Kebbi, Kano, Ebonyi, Plateau, Nasarawa, Jigawa, Ekiti, and Benue, Akwa Ibom, Adamawa and a host of other states. Youth employment and female-led processing clusters were decimated, reversing years of economic inclusion efforts. Ripple effects of the waiver are still crippling production, reducing future planting interest, and destabilizing the rice sector’s economic foundation. Smuggling Is Crippling Legitimate Operators: Beyond waivers, massive inflows of smuggled rice — often substandard and unregulated — continue to saturate Nigerian markets through porous borders. Smuggling has:Made legitimate millers and processors uncompetitive; Undermined health standards and food safety; Exposed border communities to the influence of criminal trade networks; Erased market confidence for smallholder farmers, cooperatives, and agribusinesses who play by the rules.
“2027 Is Approaching – This is a Political, Economic, and Security Flashpoint: As Nigeria approaches the 2027 elections, the rice industry’s decline poses grave risks to national security and political stability. The loss of jobs, income, and productive opportunities for rural youth may lead to: Widespread unrest in agricultural regions. Increased rural-urban migration, overwhelming already strained cities.Disillusionment with public policy, creating vulnerabilities for political actors and national unity.”
Meanwhile, their call for immediate action include, “Federal Government to urgently intervene to reverse this trajectory and safeguard the rice industry — not just for economic reasons, but for national resilience. We recommend the following: End selective import waivers on rice and related food commodities. All trade incentives should be transparent, time-bound, and equitable; Reaffirm rice as a protected strategic crop, deserving of policy continuity to protect over 5 million livelihoods directly dependent on its value chain. Strengthen Nigeria Customs Service operations to seal off key smuggling corridors and deploy rapid-response border enforcement.Create a national rice buffer stock and offtake mechanism, to stabilize market prices during harvest cycles. Support paddy production through access to irrigation where we can have double Paddy production circle that is through rain fall and irrigation, supply of affordable inputs, mechanization, and affordable low interest agriculture financing. Launch a public campaign to promote Nigerian rice, rebuilding consumer confidence in local quality and traceability.”