Nigeria reduces rice import following CBN agric intervention
By Jeph Ajobaju, Chief Copy Editor
Rice import from Thailand reduced to 15 tonnes in the first seven months of the year to July (7M 2022), a 98.4 per cent drop versus 957 tonnes in 7M 2021, evidence of the success of the intervention of the Central Bank of Nigeria (CBN) in agriculture.
Data for 7M 2022 collated by the Thai Rice Exporters Association (TREA), one of the largest rice exporters in the world, shows Nigeria’s rice imports from the association fell to the lowest level in the period.
Nigeria spent less than one million Thai Baht in 7M 2022 consuming rice produced in that country, a fraction of 15 million Thai Baht spent in 7M 2021 and of the total 30 million Thai Baht spent in full year 2021 (FY 2021).
Rice importation has dropped significantly in recent years following measures taken by the federal government to reduce imports and raise local production.
Official data shows the progressive rice import decline as 2014 (1.24 million tonnes) 2015 (244,131 tonnes), 2016 (58,260 tonnes), and has remained in a downward trend to date, according to reporting by Nairametrics.
The decline came after the inclusion of rice in the 41 items the CBN disqualified for foreign exchange (forex) at the Nigerian Foreign Exchange Window.
Increase in local production
The CBN in 2015 banned the 41 items from accessing official forex, banned rice import across land borders, and placed 70 per cent tariff on its import through seaports.
Abuja in 2019 closed all land borders, banning movement of goods in and out of the country through them.
Local rice production rose to 5.29 million tonnes in 2021, the highest annual harvest in Nigeria’s history. But increase in rice consumption has also widened supply deficit.
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Rice smuggling
Nigeria consumed 7.96 million tonnes of rice in 2021 against local production of 5.29 million tonnes, a deficit of 2.66 million tonnes.
The data comes from the Organisation for Economic Co-operation and Development (OECD) and United Nations Food and Agriculture Organisation (FAO), per Nairametrics.
Rice is being smuggled through land borders despite government efforts to clamp down on illegal imports.
Senate Agriculture Committee Vice Chairman Muhammad Enagi disclosed in 2021 that about two million tonnes of rice were being imported or smuggled into the country.
Rice import in Benin Republic suddenly increased in 2016 after Nigeria’s import dropped, and has remained above Nigeria’s numbers despite having a population less than 6 per cent of Nigeria’s 216 million.
Imported rice is being smuggled from Benin Republic to Nigeria.
Flood threatens local production gains
Rice processing facilities are being threatened by an unprecedented level of flood across Nigeria which has displaced over three million people, caused huge rice harvest losses, and submerged $15 million worth of Olam’s rice farms.
The price of domestic rice has surged above N37,000 per 50kg bag in Lagos with foreign rice going for N40,000 as a result of supply constraint amid rising demand in the run up to the December festivities.
