From the East to the West and North to South, rice traders across Nigeria share a common story of struggle....Read Full Article >>➤
According to the traders, they encounter numerous challenges in selling Nigerian rice, including financial burdens from deposits made to millers and the high costs associated with selling the product.
These, they said, often result in losses as rice that remains on the shelf for extended periods can change colour and lose its value.
“Nigerian rice has a short shelf life — typically only 2 to 3 months—before it changes colour and develops an unpleasant odour in heat”, one of the traders said.
But the claim degenerated into rancour as Peter Dama, President of the Rice Millers Association of Nigeria (RIMAN), immediately fired back, saying traders alleging Nigeria rice changes colour after three months went to get it from those who are not millers. “Millers mill according to standards. Many go into business and claim they are rice millers. Those women complaining must have gone through the wrong hands”, Dama told Sunday Vanguard.
“They didn’t go through proper millers. Registered millers follow Standard Organisation and NAFDAC standards for them to be able to produce and sell and they are always checked”.
The RIMA leader went on to say that the current hardship faced by traders and consumers are unlikely to improve unless the underlying issues affecting farmers and rice millers are addressed.
He highlighted challenges such as the soaring costs of fertilizers and production due to the removal of fuel subsidies, as well as insecurity that has led to the deaths of farmers and resulting in a scarcity of the essential raw material, paddy.
Rising costs
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Rice, a staple food for families across Nigeria, is consumed widely regardless of production levels.
Unfortunately, the rising cost of the product has exceeded the minimum wage for Nigerian workers, which is set at N70, 000.
50kg bag of locally produced rice currently sells for N90, 000
A family of four that relies solely on rice could easily consume an entire bag or more within a month.
The situation worsened after the government closed the Seme border with the Benin Republic in August 2019, leading to significant price increases.
During former President Buhari’s administration, notable progress was made in rice production, exemplified by the establishment of rice pyramids comprising one million paddy through the Central Bank of Nigeria’s Anchor Borrowers’ Programme (ABP).
Launched in 2015, this initiative aimed to boost agricultural output and improve Nigeria’s negative balance of payments concerning food. The ABP was designed to strengthen the agricultural sector, contributing to economic growth, job creation, reduced reliance on imported food and raw materials, and conservation of foreign exchange.
Reports indicate that Nigeria hosts over 100 large-scale integrated rice processing facilities spread across various regions.
Traders believe government has supported millers and farmers to achieve food security and economic diversification, but said they and consumers are not reaping the benefits.
They (traders) continue to face escalating costs for Nigerian rice, which has pushed many into poverty.
Dire situation
Mrs. Bukola Osagie, a rice dealer at Mile 12 Market, Lagos highlighted the dire situation: “Many women are suffering. This is due to frustration as we are now indebted to banks.
“If it weren’t for my religious foundation providing me peace amid these challenges, I might not have survived what I’ve been through. “I find myself trapped in a cycle of debt due to Nigerian rice.”
She explained that many traders, including herself, took loans from banks to procure Nigerian rice after the border closure.
“We formed groups, took loans and approached millers in Kano and Kebbi to secure rice for sale”, Osagie narrated.
“Initially, we were promised deliveries within two weeks to a month, but delays became commonplace.
“When we checked back, many mills had shut down, leaving us as debtors.
“Thanks to human rights lawyers who intervened for the banks to stop the interest on the loans, we managed to negotiate with the banks to repay our loans monthly, even for rice we never received.”
The dealer noted that while there are larger millers available, their prices are prohibitive, and they do not sell directly to small traders.
“By the time we purchase from intermediaries, prices have skyrocketed, making it impossible for consumers to buy”, Osagie added.
She urged the government to extend support to off-takers.
“If the government helped us as much as it does to farmers and millers, prices would drop, and we wouldn’t be drowning in debt”, she said.
“Many of us have resorted to buying smuggled rice just to keep our businesses afloat.
“Ironically, the same law enforcement agencies that accept money to allow smuggled rice are the ones who arrest us.
“The stress has caused many traders severe health issues; some have even died from shock. We need urgent government intervention — policies that favour both off-takers and consumers will lead to food abundance and improved livelihoods for everyone.”
Traumatic
Dr. (Mrs.) Macaulay, an executive member of the Lagos State Rice Distributors Association, echoed these sentiments: “Despite governmental efforts encouraging traders to source from local millers, our experiences with them have been nothing short of traumatic.
“I began purchasing Nigerian rice in 2015 with an investment of N6 million.
“Now, acquiring a ton costs over N40 million, and my last stock was priced at N42 million.
“To stock Nigerian rice today, you need at least N50 million for a ton.
“This money comes from loans, which we have to secure despite selling at a profit margin of only N500 to N1, 000 per bag.
“Since August 2024, I have stored 600 bags, but I haven’t sold even half of them because demand is low.
“Foreign rice is cheaper, and given the economic hardships in the country, many people are indifferent to nutritional differences. “If there’s just N1, 000 difference in price, they’ll opt for the cheaper option.
“Currently, foreign rice is priced just above N70, 000, while Nigerian rice exceeds N90, 000 — so consumers are forced to choose the foreign option.
“Before the EndSARS protests, I bought a ton of rice at N23, 000 per bag.
“When the protests began, sales plummeted, and soon after, the borders reopened, allowing foreign rice to flood the market at prices as low as N17, 000.
“Who would choose to buy Nigerian rice at N25, 000 when cheaper options are available? I am still in debt from that purchase and I am gradually paying it off.
“We even had to sell some bags at N5, 000 each because Nigerian rice has a short shelf life — typically only 2 to 3 months—before it changes colour and develops an unpleasant odour in heat.
“For two tons (1,200 bags), I incurred a loss of N20, 000 per bag because demand was non-existent and the rice started changing colour.
“We had no choice but to sell at that price. “While there are over 10,000 millers in Kano and Kebbi, many have ceased production due to a lack of paddy in Nigeria; it’s now being imported.
“Paddy prices have risen to about N79, 000, and millers still have to factor in transportation costs, processing, packaging, machinery maintenance, diesel, and staff salaries.
“The same issues affecting paddy are also impacting fish feed and chicken feed.
“Flooding has devastated production in Kebbi, and insecurity in the North is hindering farmers from cultivating paddy.
“For now, rice price won’t decrease because no miller can afford to sell for less than N85, 000.
“Our government needs to intervene. We are hesitant to stock rice as millers are asking us for help to stock their rice since they’re struggling to sell.
“I couldn’t assist them because I still have around 300 bags in my shop that haven’t been sold. We’re also burdened with shop rents and staff salaries.
“Even if there were paddy available, people aren’t buying as such because prices are too high.
“The decline in foreign rice prices will continue to negatively impact us since Nigerian rice is priced at above N90, 000.
“I’ve experienced issues with one of my suppliers who shut down while holding my payment for five tons. The banks won’t consider our plight.
“The risks in this business are extremely high. If you attempt to compete by purchasing foreign rice upfront and it is seized by security agencies, you’re left helpless.
“Many have suffered severe losses or even closed their shops due to these challenges.
“All the companies that owe us money cannot produce because there’s no paddy available. “The government must assist us; without production support, we cannot obtain our goods or recover our funds.
“We are dying”.
Arbitrary
In Kwara, Vanguard correspondent reported that more than 80% of Nigeria rice on display across the markets in the state is produced in Patigi, Edu,Kaiama and Baruten northern parts of the state where the product is highly prevalent, but arbitrary hike in prices by millers in a bid to exploit consumers is a big issue.
According to a trader at Adexprime Food Store on Yoruba Road, Ilorin, who spoke anonymously, the Federal Government should not entirely ban foreign rice if they’re not ready to resolve the problems Nigerian producers are facing.
Alhaja Risikat Abdullahi, another trader at New Market, Baboko, Ilorin, emphasized that since almost every family eats rice, government should support millers by subsidizing their operations and ensuring that the rice they produce is far cheaper than the imported ones.
“The price should also be regulated. This way, people will be solely consuming local rice, nobody will buy foreign rice again”, she said.
Also speaking on the issue, Mrs Felicia Ige, who runs a supermarket at Muritala Road, Ilorin, said the fundamental problems Nigerians face in producing local rice were a reflection of the type of leaders we have.
“The way millers arbitrarily fix the price of rice grown in Nigeria shouldn’t be if they want off-takers and consumers to survive. We shouldn’t continue this way,” she added.
‘Nigerian factor’
One of the staff members of a big milling company in Kebbi, who craved anonymity, spoke about the challenges facing Nigeria rice production: ”The government has every role to play in making Nigerian rice available and affordable.
“For instance, they can remove multiple taxes on millers.
“We have the capacity to produce the rice that Nigeria needs but we are limited by the ‘Nigerian factor’”.
In Delta State, our correspondence spoke to Mr Owhosode Hope, a wholesaler at Ughelli, who said: “Rice was cheaper before government said we should go back to eating Nigeria rice. “Then the price went up and the astronomical increase became unbearable.
“It is not funny for us because the business we are dealing in is basically on loans and paying back the loans is not easy.
“We thought there will be drop in prices but as it is now, they are telling us the prices will even go higher.
“I learned that the problem is due to the scarcity of rice paddy and that is where the government should come in.
“Government should invest in rice planting and when it is time for harvest, let them sell the paddy to millers.
“If they sell to millers, they can decide on what price the millers should sell which should be lower than what we have now.”
Humongous challenges
On his part, Dama, RIMAN President, said price increases started with the removal of petrol subsidy by the Federal Government.
“Millers use fuel to produce; electricity is not stable and so people have to use generators in order to mill their rice”, he argued.
“There are some places where you can hardly have electricity for three hours a day and you have to mill rice for eight hours.
“So, we have to depend on diesel or petrol to power our generators to be able to continue production and it’s expensive.
“Also farmers who produce the raw materials for milling of rice called paddy are facing many difficulties.
“The cost of production like fertilizer, pumping of water, labour is very high.
“Nothing is cheap in this country again. The labourer who used to take N500 an hour now takes N2, 000 to N3, 000 per hour.
“So, you don’t expect rice miller to mill his rice without making profit.
“The profit margin is even nothing to write home about. “Because of the cost of production, millers are not able to sell at a profitable level. “It is a fact that a lot of millers have stopped milling because they cannot continue to produce at a loss.
“In addition to that, insecurity is affecting farmers. “Farmers go to their farms and they are killed by bandits, kidnappers, terrorists. So people go to farm and they don’t come back alive. “Production has really reduced.
“Also government came out with a policy that they are going to open a window to import rice paddy. What about the high exchange rate that ultimately makes the price prohibitive?
“We are still waiting on the government to tackle the situation to see if the prices of things generally will go down.
“We are in the harvest period. Even then the cost of production keeps pushing prices up.
Bank loan
“On the women indebted to banks, millers are also indebted to banks.
“We borrow money to purchase machines from China, India, Malaysia, Europe and once these machines work for some time, they need to be serviced and parts changed and exporters in those countries don’t take Naira.
“Electricity for consumers on Band A, Band B, C and D is another issue which is pushing prices up everywhere.
“To also transport a trailer of rice before was costing N300, 000, but now we are talking about N45 million.
“Off-loading and on-loading costs have also moved from N50 to about N500 to N1, 000.
“We have been talking with government and government said they are working and we are hoping that their plan will see the light of the day”.
Cheaper rice
The RIMAN President said imported rice is cheaper because it attracted subsidy in the countries from where it was smuggled after being kept in silos for 10 -15 years.
“When it lands in Nigeria, consumers say it is cheap. This type of rice is not nutritious. They use preservatives on it and when you eat it, you begin to have all kinds of diseases like cancer”, he said.
“Nigeria rice is fresh and nutritious. It is directly from the farm to the mills”.
Shell life
Dama said the dealers who said Nigeria rice changes colour after three months went to get rice from those who are not millers.
“Millers mill according to standards. Many go into business and claim they are rice millers. “Those women complaining must have gone through the wrong hands.
“They didn’t go through proper millers. Registered millers follow Standard Organisation and NAFDAC standards for them to be able to produce and sell and they are always checked.
“We always supervise rice milling and ensure they produce to standard.
“The shelf life is two to three years and Standard Organization and NAFDAC clearly say that”.
Scarcity of paddy
The RIMAN President continued: “Paddy production is not enough when you consider our population, but that notwithstanding, we still have a little bit of paddy and millers are able to produce. “That is why if you go to the markets, you will find Nigeria rice there although it might not be cheap because of the challenges I enumerated earlier.
Cost
“If you are operating from the northern region, you buy between 75k and 80k, but in the East or West, you get it between 85k and 90k.
Hope
“We depend on the government. It is the government that came with policies that affected everything. “Before now, rice was selling for 10k to 25k, but with the removal of subsidy, the price shot up to what we are seeing. And it is not only rice. So we are waiting on the government to see what they can do.
“It is not just the millers.
“We hope the government will listen and some of the policies they have come up with, we are waiting for the improvement as they said the situation will improve.
“On the people producing substandard local rice, we have complained to relevant agencies. “They should checkmate them”.
Additional report by: Ochuko Akuopha, Delta, Demola Akinyemi, Kwara.
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