Nigerians were delighted when in January 18, 2022, the Central Bank of Nigeria (CBN) and the Rice Farmers Association of Nigeria (RIFAN) unveiled the iconic rice pyramids in Abuja.
The event appeared to point to Nigeria’s progress in rice production, driven by the Anchor Borrowers Programme (ABP).
However, three years later, Nigeria’s rice self-sufficiency narrative has been reversed, with the country once again relying on imports to meet demand.
The Anchor Borrowers Programme: A Promising Start
Under the leadership of the then-CBN Governor, Godwin Emefiele, the ABP aimed to reduce Nigeria’s reliance on rice imports by empowering local farmers and millers.
Milestones by the end of 2021:
1. According to Vanguard, 4.489 million farmers were financed, cultivating 5.3 million hectares across 36 states.
2. Integrated rice mills surged from six in 2015 to over 50 by 2021.
3. Thailand’s rice exports to Nigeria dropped from 1.3 million metric tons in 2014 to just 2,160 metric tons in 2021.
4. Local rice production increased from 5.4 million metric tons in 2015 to over 9 million metric tons in 2021.
Despite this success, rice prices rose significantly due to demand-supply gaps and economic challenges.
Current State of Rice Production and Challenges:
By 2024, rice production declined to 8.1 million metric tons, falling short of the 10 million metric tons required annually due to:
1. Insecurity: Ongoing violence disrupted farming activities.
2. High Input Costs: Fertilizers and other farming essentials became unaffordable.
3. Currency Devaluation: Increased the cost of imported inputs, impacting local production.
4 Climate Change: Unpredictable weather patterns led to reduced yields.
5. Policy Inconsistencies: Unstable agricultural financing and trade policies affected investment.
Food inflation reached a record 39.93% by November 2024, driven by:
1. Increased prices of staples like rice, yam, maize, and palm oil.
2. Rising costs of transportation and inputs.
3. A 50-kg bag of rice, which cost ₦8,500 in 2015, rose to ₦95,000–₦105,000 by late 2024, making rice unaffordable for many Nigerians.