Nigeria’s rice industry, once a beacon of self-sufficiency, is now facing an uphill battle. With soaring production costs, dwindling paddy supply, and an influx of cheaper imported rice, local millers are struggling to stay afloat. The result? Foreign rice is rapidly taking over Nigerian markets, putting years of domestic agricultural progress at risk.
Foreign Rice Imports Surge, Local Mills Struggle
The numbers tell a stark story. According to the Thai Rice Exporters Association, Nigeria’s rice imports from Thailand skyrocketed in 2024, increasing 60-fold to reach 34,855 metric tons (MT), the highest since 2017.
But Thailand isn’t the only source. Neighboring countries like Togo and Benin have also recorded massive increases in rice exports, much of which is smuggled into Nigeria through porous borders. This surge in imports has made it increasingly difficult for local rice millers to compete.
The Rice Millers Association of Nigeria (RIMAN) reports that over 50 small-scale mills shut down in 2024 due to high production costs and limited access to paddy. According to RIMAN’s national chairman, Peter Dama, energy costs, high-interest rates, and an influx of foreign rice have made survival nearly impossible for many millers.
Why Nigerians Prefer Foreign Rice
Price isn’t the only reason why foreign rice is dominating the market. Many Nigerian consumers still perceive imported rice as being of higher quality compared to locally produced brands.
In fact, some local suppliers have resorted to repackaging Nigerian rice as foreign varieties just to meet consumer demand. This trend highlights a major branding and quality perception issue that local millers need to address if they want to compete effectively.
The End of Anchor Borrowers Programme: A Major Setback?
One of the biggest blows to Nigeria’s rice industry was the recent termination of the Anchor Borrowers Programme (ABP). This government initiative provided crucial subsidies and financial support to rice farmers, helping them boost production.
With the ABP scrapped, experts warn that rice production in Nigeria will decline even further. According to the United States Department of Agriculture (USDA), Nigeria’s rice output dropped by 6.7% in the 2024/2025 season—its lowest level since 2020.
Can Nigeria’s Rice Industry Recover?
Nigeria’s rice industry is at a crossroads. Without urgent intervention, foreign rice will continue to dominate, reversing years of progress in local production. To revive the sector, key measures must be taken:
Better Access to Financing: Small and medium-scale rice millers need low-interest loans and government support to remain competitive.
Improved Paddy Supply: Addressing the scarcity of raw materials will help boost production capacity.
Investment in Processing Technology: Upgrading rice milling facilities can improve the quality of locally produced rice, making it more attractive to consumers.
Stronger Border Control: Tackling smuggling will help protect local producers from unfair competition.
If these challenges are not addressed, Nigeria may soon become entirely dependent on foreign rice, losing both economic value and food security in the process.
Conclusion
The dominance of foreign rice in Nigeria is a growing concern, with rising imports, struggling local millers, and a decline in domestic production. Without strategic interventions, the country’s goal of self-sufficiency in rice production could become a distant dream.