FG urged to end rice importation waivers, smuggling

The Competitive African Rice Forum—Nigeria Chapter (CARF-FSD Nigeria) has issued a stark warning about the deteriorating state of Nigeria’s rice industry, citing unchecked importation, policy inconsistencies, and weak enforcement as severe threats to nearly two decades of progress toward national rice self-sufficiency.

In a press statement released by the Chairman of the Board of Trustees, Mr. Peter Dama, the forum decried the adverse effects of the federal government’s 180-day import duty waiver, which allows husked brown rice and other food items to enter the Nigerian market tariff-free. While the waiver was intended to combat rising food prices, its unintended consequences have devastated the local rice value chain.

According to Dama, over 13 million metric tonnes of domestic rice milling capacity remain underutilised due to an influx of cheaper, often smuggled, foreign rice. The result: mill closures, job losses, and dwindling demand for locally grown paddy across major rice-producing states such as Kebbi, Kano, Ebonyi, Benue, Plateau, and Adamawa.

He described the situation as a collapse of rural livelihoods, noting that women-led rice processing enterprises and youth employment schemes are now at risk. “This waiver wiped out nearly a decade of hard-earned gains. It has crushed rural economies and reversed efforts to create inclusive, sustainable agricultural growth,” Dama stated.

CARF-FSD Nigeria called for an urgent policy review and the declaration of rice as a protected strategic crop. They urged the government to:

• Enhance customs enforcement to curb smuggling;
• Establish a national rice buffer stock and market stabilisation programme;
• Expand support for paddy production via irrigation, mechanization, and access to low-interest agri-finance;
• Launch a nationwide campaign to rebuild consumer confidence in Nigerian rice.

Dama warned that the crisis goes beyond agriculture, highlighting potential socio-political ramifications. “This is no longer just an agricultural issue — it is a political, economic, and security flashpoint,” he said.

The group reaffirmed its commitment to work with government actors to stabilize and revive the domestic rice sector, warning that failure to act swiftly may lead to increased rural poverty, insecurity, and disillusionment ahead of the 2027 general elections.
Source:Tribune Online

Expert Review for Agri-Food Stakeholders
Nigeria’s rice sector is facing one of its gravest existential threats in recent years, and the alarm raised by CARF-FSD Nigeria is not only timely but pivotal. This situation exposes deep structural weaknesses in how trade-offs between short-term food affordability and long-term production sustainability are managed.

Strategic Implications and Action Points

1. Protecting Domestic Processing Investments
   – With over 13 million MT of milling capacity idle, stakeholders must recognize that years of investment in processing and backward integration are at risk.
   – A national rice value chain rescue strategy is urgently required, targeting processors, aggregators, and millers through stimulus packages and tax relief.
2. The Smuggling and Market Distortion Challenge
   – Smuggling undermines pricing stability and erodes farmer confidence. Government and private sector actors should co-invest in border surveillance technology and data-driven customs enforcement to curb illegal inflows.
   – A public-private intelligence task force could be formed to map smuggling hotspots and recommend adaptive trade response mechanisms.
3. Food Policy and Trade Alignment
   – Food security policies should not contradict agricultural industrialisation goals. Stakeholders, especially local governments and state-level Ministries of Agriculture, should push for policy harmonisation forums that balance trade access with local production priorities.
   – Consider conditional import waivers that only apply when domestic supply deficits are verified through a national paddy inventory system.
4.  Rural Livelihoods and Job Creation
   – Youth and women-led rice processing hubs are central to inclusive growth. Strengthening their resilience through targeted grants, offtake agreements, and market linkage platforms will reinvigorate local economies.
   – Emphasis must also be placed on cluster-based interventions, where entire rice processing ecosystems can be revived as unified industrial hubs.
5. Market Reorientation and Consumer Confidence
   – A nationwide “Proudly Nigerian Rice” campaign, supported by improved packaging, pricing transparency, and quality assurance, can drive a shift in consumer preference toward local rice.
   – Digital marketplaces and B2B rice traceability platforms can further help buyers source directly from millers and cooperatives.

Conclusion
The rice crisis is a litmus test of Nigeria’s agricultural policy resolve. The federal government’s next steps will either reinforce the foundation for agro-industrial sovereignty or unravel years of hard-won progress. Stakeholders must act collaboratively—and fast—if Nigeria is to avoid a total collapse of its most strategic staple crop economy.