Rising imports and high costs strain Nigeria’s local rice industry
Industry data shows widening supply gaps and growing reliance on imports as farmers and millers struggle to stay profitable.
Nigeria spent about ₦51 billion in the rice industry and importation in 2024, highlighting growing pressure on the country’s local rice value chain as farmers and millers struggle with rising production costs and weak demand. Data from UN Comtrade shows that the increased reliance on foreign rice is occurring despite earlier improvements in local productivity and expanded milling capacity.
Stakeholders across the rice ecosystem say local production is becoming harder to sustain, with high input costs and market challenges affecting profitability. Muhammed Augie, former Kebbi State chairman of the Rice Farmers Association of Nigeria, said many farmers are finding it difficult to sell their harvest. He noted that several millers who previously bought paddy from them have shut down operations, forcing growers to switch to other crops such as sorghum.
“Last year, less than 30 percent of rice fields in Kebbi were cultivated,” he said. “Rice farmers are in limbo, and lots of them are abandoning cultivating the grain.”
Similar concerns were raised by Ibrahim Salah, a rice farmer and aggregator in Jigawa State, who said falling demand and higher production expenses have made rice farming less viable. “The demand for paddy is very low at the moment, and it is not profitable for us,” he said.
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Industry data suggests that Nigeria still faces a wide gap between rice demand and supply. Estimates indicate that the country requires about 6 million metric tons of milled rice annually, while production levels remain significantly lower. According to the Rice Processors Association of Nigeria, meeting domestic demand would require about 11 million metric tons of paddy, compared with the current output of around 4.8 million metric tons, leaving a substantial shortfall.
Although Nigeria’s milling rice industry has an installed processing capacity of roughly 7.5 million metric tons, many operators are running below capacity due to macroeconomic pressures and limited access to affordable inputs. Reports from farmer groups indicate that dozens of mills have shut down operations as they struggle to compete with cheaper imported rice.
Peter Dama, national chairman of the Rice Millers Association of Nigeria, said high costs across the value chain are limiting local competitiveness. “Rice millers cannot ramp up production and compete with cheaper imports with the high cost of paddy, energy costs and interest rates,” he said, adding that several small-scale millers ceased operations in the past year.
Regional trade dynamics are also shaping supply patterns. Import data shows that neighbouring countries such as Benin and Togo recorded significant spending on foreign rice, with industry observers noting that some of these volumes may find their way into Nigerian markets through informal cross-border trade routes.
As production challenges persist and demand continues to outpace supply, the latest figures point to a rice industry under strain, where rising imports, high operating costs, and reduced milling activity are reshaping how one of Nigeria’s staple foods is produced and distributed.
