Bottlenecks impacting Nigeria’s local rice production

Nigeria’s local rice production industry is facing several challenges, including access to finance and high processing costs. The CEO of Afex Nigeria, Akinyinka Akintunde, has highlighted the urgent need for the government to address these issues and consider providing subsidies for smallholder farmers in the country. Akintunde emphasized the interconnected nature of the Nigerian economy and discussed the impact of recent reforms on local rice production. He noted that the high cost of processing locally due to factors like electricity expenses has made Nigerian producers uncompetitive in the global market. As a result, many manufacturers prefer to import rice rather than produce locally, leading to an insufficient supply to meet the high demand for rice in the country. Akintunde pointed out that Nigeria currently doesn't produce enough rice to feed its citizens, resulting in high prices. He explained that fluctuations in the value of the Naira have influenced the cost of raw paddy rice, making importation more favorable than exportation. The CEO of Afex Nigeria also touched on the challenges faced by smallholder farmers in accessing finance for production, stressing the need for the government to intervene and provide subsidies to lower production costs. Discussing the IFEX Impact Report 2020-2024, Akintunde highlighted initiatives aimed at enhancing the value of smallholder farmers in the country. He mentioned partnerships with organizations like the British International Investment Committee and access to over $500 million from capital markets and other financing partners to address food security issues. The report revealed that farmers working with IFEX experience greater economic well-being compared to those who do not engage with the organization. Akintunde pointed to the positive impact of IFEX's efforts on poverty reduction, gender equality, sustainable production, and economic growth. In conclusion, the CEO of Afex Nigeria emphasized the potential for Nigeria and Africa as a whole to become significant players in food production. He underscored the importance of infrastructure development and support for smallholder farmers in transforming the agriculture sector. Akintunde's call for government intervention and subsidies for local rice production reflects a broader effort to address critical bottlenecks and enhance the competitiveness of Nigeria's agricultural industry.