By Agrobroadcast Team
Nigeria’s rice processing industry is facing mounting pressure as the influx of smuggled foreign rice continues to disrupt local production, forcing dozens of mills to shut down and threatening the stability of the country’s rice value chain.
This concern came to the fore in Abuja on Monday when the Minister of State for Industry, John Owan Enoh, met with members of the Rice Processors Association of Nigeria (RIPAN) to discuss urgent measures to safeguard domestic rice production and strengthen the sector.
During the meeting, stakeholders highlighted how the persistent inflow of smuggled rice is eroding the competitiveness of locally processed rice and discouraging investment in Nigeria’s rice processing industry.
Addressing participants, Enoh stressed that the long-term sustainability of the rice sector would depend largely on stronger cooperation among government agencies, industry operators and private sector actors.
“Sustainable progress in Nigeria’s rice industry can only be achieved through strong collaboration among government, industry leaders and private sector stakeholders.
Every player in the value chain must work together to ensure that Nigeria continues its journey toward self-sufficiency in rice production,” the minister said.
He reaffirmed the Federal Government’s commitment to ensuring that rice remains available across the country while also protecting national food security and maintaining affordability for consumers.
However, the minister expressed serious concern over the growing presence of cheaper imported rice in Nigerian markets, warning that it poses a major threat to domestic production and the broader agricultural and industrial landscape.
“When imported or smuggled rice is sold at prices far below locally processed rice, it undermines domestic production and discourages investment in the sector.
“Government will not hesitate to take necessary policy actions to protect local industry and sustain Nigeria’s rice value chain,” he said.
Enoh also called on industry stakeholders to provide reliable data and accurate information about the challenges facing the sector, noting that such insights are necessary for the government to formulate effective policies.
According to him, while the problems confronting the rice industry have been discussed for years, the present administration is more focused on practical implementation rather than prolonged consultations.
“Many of these issues have been discussed repeatedly over the years. However, the focus of this administration is not endless dialogue but practical implementation that delivers results for Nigerians,” he added.
He further described rice as one of the most widely consumed staple foods in Nigeria, stressing that strengthening the sector remains vital for food security, employment generation and economic growth.
In his remarks, the Director-General of the Rice Processors Association of Nigeria, Andy Ekwelem, said the scale of rice smuggling has become a major threat to the survival of local processors.
Ekwelem explained that rice smuggled through Nigeria’s land borders avoids official tariffs and levies, allowing it to be sold at prices significantly lower than locally milled rice.
“Smuggled rice enters the Nigerian market at prices that local producers simply cannot compete with. This unfair competition has had devastating consequences for the industry,” he said.
He disclosed that out of more than 150 rice mills operating across the country, nearly 90 have shut down, while the remaining mills are running at only between 30 and 70 percent of their installed capacity.
Despite the current difficulties, Ekwelem noted that the rice industry remains a major contributor to the Nigerian economy, providing direct employment for over 100,000 people including graduates and women while supporting more than 10 million farmers along the agricultural value chain.
He added that farmers and processors are also grappling with rising production costs, insecurity in farming communities and inadequate infrastructure.
“Many farmers are forced to sell their produce at a loss due to the pressure created by the influx of cheaper smuggled rice. This situation is making it increasingly difficult for local millers to remain viable,” he said.
Ekwelem also clarified that the recent decline in rice prices in some markets should not be interpreted as evidence of increased domestic production. According to him, the drop is largely driven by organised smuggling networks transporting large volumes of rice through illegal border routes.
Stakeholders at the meeting therefore called for stronger border surveillance and stricter enforcement measures to curb the illegal inflow of rice into the country.
They noted that addressing smuggling would help revive idle rice mills, encourage farmers to expand production and unlock broader economic benefits across Nigeria’s agricultural value chain.