The Great Rice Chase: A Parable of Grains and Gain

Imagine yourself running. Not for fitness, not for sport—running because behind you, boots are pounding the ground, and voices are shouting “Hol am Hol am”. You’re clutching a 25kg sack of rice to your chest like it’s your last lifeline. You’re near the Seme border, trying to make it across before customs catches up.

The sack is heavy. Too heavy. Your arms are burning, sweat stings your eyes, and the only thing louder than your heartbeat is the rising whine of a motorcycle engine behind you. You hear the click of a rifle being cocked.

They catch you, of course. They always do. That was 2015, when the government had banned rice imports. Everyone was talking about self-sufficiency and food security. But in the markets, people just wanted rice they could afford.

Nigeria’s Rice Story: Between Borders, Barns, and Business

Rice is more than just a staple in Nigerian homes—it’s a story of ambition, resilience, and complex trade ties that stretch from the fertile farms of Kebbi and Ebonyi to the bustling ports and informal border crossings with Benin and beyond. As Nigeria strives to feed its population of over 220 million, the rice business has become a microcosm of the nation’s broader economic challenges and opportunities.

From Humble Beginnings to a Growing Industry

Just two decades ago, Nigeria’s rice milling sector was a patchwork of small, scattered operations—cottage industry mills that served local communities but struggled with low productivity and outdated equipment. Fast forward to 2023, and the landscape looks remarkably different: over 100 integrated rice mills now operate across the country, concentrated in major rice-producing states like Kebbi, Niger, Kogi, Ebonyi, and Kano.

These mills form a critical link in the value chain, employing thousands of farmers, traders, and processors. Rice milling is no longer just about cracking grains; it is a vital part of Nigeria’s food security and economic development. But despite these gains, the industry faces persistent hurdles that threaten its growth and Nigeria’s rice self-sufficiency ambitions.

Nigeria’s Modern Rice Mills: Engines of a Silent Revolution

Nigeria’s rice transformation has been driven in large part by the rise of modern, integrated rice mills. Some of the most notable include WACOT Rice Mill in Kebbi State, one of West Africa’s largest, with a processing capacity of 120,000 metric tonnes annually. Imota Rice Mill in Ikorodu is also on the rise.

Olam’s integrated rice mill in Nasarawa is another industry leader, boasting advanced technology and backward integration with thousands of local farmers.

In Ebonyi, EbonyAgro Industries processes indigenous rice varieties, contributing to both regional identity and national supply. Mikap Nigeria Ltd. in Benue, producers of the “Miva Rice” brand, has also been instrumental in branding Nigerian rice for mass and premium markets alike. These mills don’t just process rice—they provide direct and indirect employment, support outgrower schemes, and help build a consistent supply chain that reduces reliance on imports.

The Core Challenges Holding Nigeria Back

1. Insufficient Paddy Supply:
   Many local mills still depend on imported paddy—raw, unprocessed rice—from neighbors like Benin and Burkina Faso. This exposes millers to price swings and logistical disruptions.
   
   

2. Low Farm Yields:
   Nigerian rice yields average under 2 tons per hectare, compared to Egypt’s 8 tons/ha and a global average of 4. Poor irrigation, limited access to high-yield seeds, and outdated practices all play a role.
   
   

3. High Production Costs:
   With erratic electricity supply, many mills rely on diesel generators, driving up costs—especially for small and medium-sized operators.
   
   

4. Technology Gaps:
   While larger mills boast modern facilities, many small mills still use outdated equipment, affecting both efficiency and product quality.
   

Indigenous Rice vs. Imported Grain: Nigeria’s Plate Divided

Despite rising local output, Nigeria still relies on imports for nearly 43% of its rice consumption. As of 2024, local rice satisfies about 57% of national demand—roughly 3.7 to 4 million metric tonnes annually. The remainder—around 2.8 to 3 million tonnes—is filled by imports, both official and smuggled.

Top Import Sources (2023):

• India: $5.9 million worth of rice

• UAE: $743,000

• Thailand: $307,000 (including a 32,000-ton shipment in 2025 under temporary tariff relief)

• Benin: $101,000 (much more unofficially)

• USA: $95,400

Despite border enforcement and port restrictions, demand gaps and pricing differentials ensure that rice keeps flowing in—legally or not.

Historical Roots: From Ofada to Imports

Rice has long been cultivated in Nigeria, with indigenous varieties like Ofada and Igbemo earning a place in local cuisine and culture. Post-independence policies such as Operation Feed the Nation (1976) and the Green Revolution (1980s) aimed to boost domestic output. But population growth and evolving diets outpaced these efforts.

The 1986 rice import ban, part of the Structural Adjustment Programme, was a watershed moment. It drove up local farming but also spawned a vast smuggling economy. When the ban was lifted in 1995, imports surged again—especially of parboiled rice from Asia.

The Export Gap: Untapped Opportunity

Nigeria’s rice exports remain minimal—just $185,000 in 2023, primarily to Ghana, Canada, Benin, the U.S., and the U.K. Rice ranks a lowly 373rd among Nigerian export products. Yet, niche varieties like Ofada and Abakaliki rice hold potential for premium international markets—if quality and certification standards can be met.

Why It Matters for Businesses

The rice sector is a case study in how infrastructure, technology, and policy intersect. Just as mobile data leapfrogged fixed-line broadband, Nigeria’s rice industry needs scalable, decentralized solutions. High-quality local milling gives Nigerian brands a fighting chance against cheap imports and counterfeit products—but only if they can bridge production and supply chain gaps.

Programs like the Anchor Borrowers’ Program have helped, providing farmers with inputs and credit. Still, larger investments in logistics, processing, and marketing are essential for the sector’s long-term viability.

The Road Ahead: Grain by Grain Toward Self-Sufficiency

In 2021, Nigeria reached a record 9 million metric tonnes in rice production—a hopeful milestone. But self-sufficiency remains elusive due to persistent inefficiencies and external competition.

To close the gap, Nigeria must prioritize:

• Modern farm practices and high-yield seed adoption

• Reliable, affordable energy for milling

• Quality assurance and branding for local and export markets
  
  

Until then, the rice on Nigerian tables will remain a blend of homegrown grains and foreign imports—a symbol of a nation still writing its own food story.