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Rice Pyramid Fiasco Highlights Nigeria’s Persistent Rice Import Dependence

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Fake rice pyramid

Abuja, Nigeria – The widely publicised launch of a rice pyramid in Abuja in January 2022, a collaboration between the Central Bank of Nigeria (CBN) and the Rice Farmers Association of Nigeria (RFAN), has become a symbol of Nigeria’s ongoing struggle for rice self-sufficiency.

The impressive display, which was intended to highlight the country’s rice production capabilities, quickly unravelled, revealing a façade that concealed the reality of a significant rice import deficit.

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The pyramid, which was more of an architectural marvel than an agricultural achievement, quickly became a forgotten monument to a failed attempt to boost public confidence.

Rice prices have skyrocketed since then, rising from a low of N2500 in 2000 to a staggering N105,000 by 2024. While some price variations reflect quality and logistics, the overall trend highlights a critical issue: Nigeria continues to rely heavily on rice imports.

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Despite being Africa’s most populous country, with an unofficial population of over 250 million, Nigeria produces only about 65% of its rice consumption requirements.

This 35% shortfall necessitates substantial imports from Thailand, India, and Vietnam, making Nigeria the world’s second-largest rice importer and Africa’s largest.

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This dependence has been a recurring issue for successive Nigerian administrations since 1999, exacerbating food insecurity, particularly during festive seasons such as the yuletide.

The Federal Ministry of Agriculture and Rural Development’s ambitious goal of achieving “hunger-free Nigeria” through agricultural sector growth remains elusive.

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However, a ray of hope emerges from Olam Nigeria, an agribusiness leader implementing an innovative nucleus farming model.

Olam’s model combines a large-scale commercial farm in Nasarrawa State with an outgrower program to help small local farmers.

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This strategy enables Olam to maintain quality while encouraging local agricultural development. The company’s investment includes significant infrastructure improvements, such as more than 40 kilometres of new roads, which benefit both the farm and the surrounding communities.

Olam’s farm, which employs over 600 people (60-70% women), aims to become Africa’s largest rice farm in five years, producing an estimated 1.5 million metric tonnes per year through replication.

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While Olam’s model offers a promising path to rice self-sufficiency, its success is dependent on ongoing profitability and the ability to replicate the model on a larger scale.

The large initial investment required remains a significant barrier, raising concerns about the feasibility of replication by smaller entities or public sector organisations.

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Furthermore, strong safeguards are required to mitigate the potential negative effects on farmers if the project encounters unexpected challenges.

The Olam initiative, while encouraging, emphasises the enormous complexity and scale of Nigeria’s challenge in achieving true rice self-sufficiency.

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