Nigeria’s multi-billion-naira rice milling industry is facing severe distress, with many mills shutting down and others operating far below capacity due to rising costs, insecurity, and government policies seen as undermining local production.
Despite massive investments aimed at achieving rice self-sufficiency, the country still produces only a little over half of what it consumes, leaving a deficit of about three million metric tonnes annually.
Kano, which hosts over 60 rice mills, and other major rice-producing states such as Kebbi and Kaduna, are witnessing closures, especially among small and medium-scale operators. Even large mills like WACOT, Labana, and Gerawa are producing at minimal levels.
Industry operators blame the situation on multiple challenges, including the high cost of paddy, insecurity discouraging farmers, smuggling of cheaper foreign rice, high energy costs, and what they describe as the Government’s selective import waivers.
According to Labana Rice Mill’s General Manager, Alhassan Yusuf, the decision to grant import licences to only two mills – Imota Rice Mill in Lagos and BUA – to bring in brown rice from India has destabilised the market. “Farmers are no longer getting value for their produce, and millers are losing billions”, he said.
He noted that for every 50kg bag, mills lose between ₦15,000 and ₦20,000 due to the cost disparity between paddy purchase and sale prices. “Smuggling and expired re-bagged rice imports have worsened the situation”, he added.
Small millers also struggle with crippling production costs following fuel subsidy removal. “Running a small mill now costs about ₦700,000 monthly on diesel alone”, said Bacita-based miller, Anjorin Oniwala.
Experts warn that continued neglect could erode years of investment. Agricultural economist Prof. Ropo Atobami said, “If these mills collapse, it will take decades to rebuild the value chain”.
Reports from the AFEX Commodities Exchange and USDA show Nigeria’s rice output fell from 9.1 million metric tonnes in 2023 to 8.1 million in 2024, due to high fertiliser prices, insecurity, and declining yields.
Analysts warn that without decisive government intervention to curb smuggling, stabilise policy, and ensure security, the dream of rice self-sufficiency may remain elusive.
