Business
From Pyramids To Ground Zero: How Rice Jumped Out Of The Common Man’s Menu
From Pyramids To Ground Zero: How Rice Jumped Out Of The Common Man’s Menu
Nigeria, despite being one of the world’s largest consumers of rice, struggles with self-sufficiency in rice production. Efforts by past administrations to make the country self-sufficient have faced significant challenges, including poor political will, smuggling, sabotage, and international influences……CONTONUE READING....KINDLY READ THE FULL STORY HERE▶
According to the Food and Agriculture Organisation (FAO), Nigeria is the largest producer of rice in Africa, producing about 8,435,000 tonnes annually. However, this has not translated into self-sufficiency or affordable prices for the common man.
The Rise and Fall of the Rice Pyramids
In an effort to showcase Nigeria’s rice production capacity, former President Muhammadu Buhari, on January 18, 2022, through the Central Bank of Nigeria (CBN), mobilized rice farmers to assemble over 1 million bags of paddy rice in pyramids under the Anchor Borrowers Scheme (ABP). This event, conducted in conjunction with the Rice Farmers Association of Nigeria (RIFAN), aimed to reduce rice prices by increasing availability.
Despite these efforts, rice prices have soared to over N80,000 per bag, prompting questions about the sustainability and effectiveness of such initiatives. Factors like policy inconsistency, high cost of inputs, and insecurity have contributed to the high prices.
Perspectives from Stakeholders
AFAN’s Insight
Kabir Ibrahim, National President of the All Farmers Association of Nigeria (AFAN), highlighted that expectations were high following the launch of the rice pyramids. He suggested that agricultural interventions should be channeled through the Federal Ministry of Agriculture and Food Security to ensure effective implementation and monitoring.
Ibrahim emphasized the importance of close monitoring and evaluation to avoid failures, recommending that rice production programs should incentivize farmers and align with climate advisories to mitigate the impacts of flooding and drought.
Kebbi RIFAN’s Perspective
Muhammad Sahabi, Chairman of Kebbi RIFAN, attributed the high rice prices to the abandonment of the ABS, which left farmers without financial support to boost their productivity. The high cost of farm inputs and lack of affordable financing have forced many farmers to abandon their rice fields, resulting in decreased production and higher market prices.
RIMAN’s View
Peter Dama, National President of RIFAN, pointed out that policy inconsistency and high production costs are major contributors to the current high rice prices. He noted that while the rice pyramids demonstrated significant production, challenges like insecurity, high input costs, and the suspension of the ABS have negatively impacted rice production.
Recommendations
Stakeholders have offered several recommendations to address the challenges in the rice value chain:
- Reduce Production Costs: The government should consider reinstating fuel subsidies, reducing electricity tariffs for manufacturers, and providing adequate security for farmers.
- Subsidies and Tax Holidays: Provide subsidies to agricultural businesses and extend tax holidays to millers and food processors to encourage optimal production.
- Trade Barriers and Research: Remove trade barriers to ensure smooth trading and invest in research on high-yielding rice seeds and climate change mitigation.
- Continued Support for ABP: The CBN should continue with the Anchor Borrowers Program, ensuring that real farmers benefit, and create special windows for agribusinesses to obtain foreign exchange at more affordable rates.
- Improving Bank Facilities: Simplify the conditions for obtaining bank facilities, including reducing the need for huge collateral, and ensure banks have operational agric desks to cater to farmers’ needs.
- Capitalization of Bank of Agriculture: Fully capitalize the Bank of Agriculture to provide farmers with easy access to necessary financial facilities.
Addressing these issues comprehensively can help stabilize rice prices and ensure that rice remains affordable for the common man in Nigeria.
The future of Nigeria’s Naira-for-Crude policy remains in limbo as negotiations continue between the Nigerian government and Dangote Refinery. The six-month agreement between the Nigerian National Petroleum Corporation (NNPCL) and Dangote Refinery expired on March 31, 2025, without a renewal, leading to the suspension of the refinery’s sale of refined petroleum products in Naira. However, the refinery has continued processing approximately 400,000 barrels of crude oil daily, with 35% of the crude sourced from international markets, particularly Brazil and Equatorial Guinea.....KINDLY READ THE FULL STORY HERE▶
Although the policy’s future is still under review, sources suggest that its economic implications, especially concerning fuel prices and foreign exchange rates, make it crucial to the national economy. Despite challenges in crude supply from NNPC, Dangote Refinery has expanded its global sourcing and is currently sourcing crude from Brazil’s Petrobras and Equatorial Guinea.
No official agreement has been reached yet to extend the Naira-for-Crude deal. The Nigerian government’s committee in charge of the policy is waiting for recommendations from the Nigeria Upstream Petroleum Regulatory Commission before proceeding. Meanwhile, the refinery’s management has expressed uncertainty regarding the renewal of the deal, citing concerns over the financial strain and volatility of exchange rates. The future of the policy remains unclear, with NNPC expected to supply crude oil to Dangote Refinery in April, but payment terms are yet to be finalized.
The price of cement, a vital resource for Nigeria’s construction industry, has witnessed significant changes recently, with rates fluctuating depending on brand, location, and market factors. Here is an overview of the current prices for some leading cement brands:....KINDLY READ THE FULL STORY HERE▶
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Dangote Cement: The cost of a 50kg bag of Dangote Cement ranges between ₦8,000 and ₦10,300. Known for its high quality, Dangote Cement remains a preferred choice in various construction projects. Prices are generally lower in areas near production plants but tend to rise in regions requiring extensive distribution.
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BUA Cement: Priced between ₦8,000 and ₦8,500 per 50kg bag, BUA Cement is popular among builders due to its competitive pricing and stability. Prices may vary slightly depending on proximity to manufacturing sites.
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Lafarge Water Shield Cement: Priced at ₦20,000 per 50kg bag, this cement variant is specifically formulated for durability and resistance to moisture, making it ideal for projects in damp environments.
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Waterproof Cement JK: Available at ₦15,000 per 50kg bag, Waterproof Cement JK is engineered to offer exceptional protection against water ingress, particularly useful for wet construction sites.
Over the past year, cement prices in Nigeria have surged significantly. At the start of 2024, a 50kg bag cost around ₦4,500. By November 2024, the price rose to about ₦8,500, reflecting an increase of approximately 89%. This upward trend is attributed to factors such as rising production costs, increased demand, and logistical challenges.
Marketers predict a potential further increase in cement prices, emphasizing the need for stakeholders in the construction sector to stay informed and plan accordingly.
A recent survey conducted by Naija News has revealed a notable decrease in the price of cooking gas in Nigeria, offering much-needed relief to households and small businesses. According to the survey, the cost of refilling cooking gas per kilogram has reduced significantly from ₦1,350 to ₦1,020.....KINDLY READ THE FULL STORY HERE▶
This positive development is expected to ease the financial burden on Nigerian families and small enterprises, especially those that heavily depend on cooking gas as a primary energy source. The survey, encompassing gas stations and vendors from various parts of the country, shows that the reduced price may help lower the overall cost of living.
The revised price breakdown is as follows:
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1 kg of Cooking Gas: ₦1,020
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3 kg of Cooking Gas: ₦3,060
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5 kg of Cooking Gas: ₦5,100
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10 kg of Cooking Gas: ₦10,200
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12.5 kg of Cooking Gas: ₦12,750
This decline marks a significant shift from the previous upward trend in gas prices and is likely to positively impact the economy, particularly the food and hospitality sectors. Businesses that rely on cooking gas will experience reduced operational costs, ultimately boosting their profit margins.
Experts attribute the drop in cooking gas prices to several factors, including fluctuations in global energy costs and adjustments within local supply chains. Despite recent variations in crude oil and natural gas prices, the reduction is perceived as a welcome development for Nigerian consumers.
By spending less on cooking gas, households and small businesses will now see some financial relief in their monthly budgets, especially during these economically challenging times.
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