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Why Nigerians are hooked to imported rice:
Insights from a comprehensive rice sector study
A blueprint for an effective rice development strategy for Nigeria is in the
making, led by WARDA economists in collaboration with their partners in Nigeria. The strategy is being developed in response to a specific request from the United States Agency for International Development (USAID), which is supporting the Project on
The Nigerian rice economy in a competitive world: constraints, opportunities and strategic
choices.
Insights from this Project will be shared with the Presidential Committee on Increased Rice Production and Export in Nigeria, which has invited WARDA to contribute to the debate on the
rice sector, so that the Committee can make appropriate decisions to reduce Nigeria’s massive dependence on imported rice and boost its rice production. The Committee was established
by President Obasanjo in 2002.
Nigeria is the world’s second largest rice importer, spending annually over US$300 million on rice imports alone. It imported 1.7 million tonnes of rice in 2001 and 1.5 million tonnes in 2002. Considering its agricultural potential, why does Nigeria need to import such vast quantities of rice? Ask any Nigerian housewife and you will get to the heart of the problem.
Why Nigerian housewives are
hooked to imported rice
Row upon row of brightly colored bags of imported rice— this is the scene that
greets you on the streets and in the supermarkets in Port Harcourt, a city in southern Nigeria. The bags are labeled Thai rice, Indian rice, Uncle Ben’s rice—everything except Nigerian rice.
This scene is not unique to Port Harcourt; it is similar in every city and town and even in many villages in Nigeria.
“I prefer to buy imported rice, because it is clean and readily available. If I buy local rice, I have to spend a lot of time removing stones or chaff from it,” says Mrs Nike Abamu from Port Harcourt. Mrs Grace Adigun from Ibadan declares, “My husband grumbles when I cook local rice; sometimes it stinks because it is not well processed.”
Poor quality and unreliable supply of local rice are the two major problems faced by rice consumers in Nigeria, where rice consumption over the last three decades has grown at an unprecedented rate of over 10% per annum—faster than anywhere else in the world. The growth is the result of a burgeoning urban population and changing consumer preferences.
Rice is easier to prepare than other traditional cereals, and fits in well with the urban lifestyles of the rich and poor. No longer considered a luxury, it has fast turned into a major staple food in the country. “Rice is even replacing cassava and yam to make ‘fufu’—one of the most common dishes in Nigeria,” says Mrs Abamu.
Although rice production in Nigeria has boomed at the rate of over 9% per annum over the last three decades, largely as a result of expansion in rice area, the production cannot match the soaring demand. The shortfall is overcome by large-scale imports.
The need for a clear picture of the rice scenario
Rice has become such a strategic commodity in the Nigerian economy, representing US$ 1 billion business, that the Government has formulated several policies over the years, to govern its course. However, decisions have been inconsistent, oscillating between open to protectionist policies. For instance, rice imports were banned from 1986 to the mid-1990s. Since 1995, rice has been allowed to be imported, but with varying ad-valorem duty, ranging from 50 to over 100%.
“This inconsistency in the rice policy has been counterproductive because it hinders the capacity of all stakeholders to develop a long-term strategy,” stated Dr Frédéric Lançon, WARDA Policy Economist who is leading the USAID-funded project.
In collaboration with the Nigerian Institute of Socio-Economic Research, the Project has conducted a series of surveys in Nigeria to get a clear picture of the rice scenario, particularly factors explaining consumers’ shift to imported rice. Complementary studies are also
being carried out to find out the reasons for the failure of big irrigation schemes.
The strength of the Project lies in the way it has been able to involve a wide range of stakeholders, from farmers to processors and traders, achieving a shared vision of issues and possible solutions.
Increasing the competitiveness of local rice
“The surveys reveal that rice consumers in Nigeria are ready to pay for quality,” commented Dr Lançon. “Yet there is no efficient mechanism in place to improve the quality of local rice and surprisingly most millers are not even aware of this issue.”
The Project’s findings indicate the strategic choices that the Government has to make, to boost the country’s rice sector. They include the need for:
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Focused, instead of uniform policy on the most promising ecologies.
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Improvement of the input market and sustainable access to fertilizer.
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Improvement of the processing capacity, marketing and retailing efficiency, through financial support and training.
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Marketing campaign to promote the image of the local rice.
The Project’s final results and recommendations will be presented at a workshop in May 2003. The Presidential Committee is eagerly awaiting insights from this valuable Project to revitalize the country’s rice economy and increase the competitiveness of local rice.
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