Vanguard (Lagos)

Nigeria: Governor Decries Huge Spending On Rice Importation

Jimoh Babatunde

28 November 2008


The Governor of Niger State, Dr. Muazu Babaginda Aliyu, has decried the huge foreign exchange on the importation of rice into the country annually which he puts at about US$800m when there is large land for rice production in the country.

Speaking at the NEPAD rice investment forum in Abuja during the week, the Governor commended the convener of the forum for their patriotism and foresight in bringing to centre stage the issue of "Rice production, processing and marketing, at a lime when there is evidence that substantial amount of our exchange, an estimated US$800 million, is being used to service rice import bills annually."

He added "Most worrisome is the fact that a large part of the imported rice, about 3 million tons of the estimated 5 million tons consumed per annum in Nigeria, come from Asia, notably Thailand, India, Vietnam and China - a part of the world whose combined land space is probably not up to that of one State in the Northern part of this country."

Dr. Aliyu said there was need to address the issue of rice production in Nigeria, "Why is it that nations with limited land mass are able to produce rice in such large exportable quantities? What are the factors militating against our rice production, processing and marketing efforts? How can we make the best use of the National Cereals Research Institute (NCRI) in Badeggi, Niger State to achieve our national rice targets, especially in breed development and seeds multiplication services. Why can't we adopt integrated farming techniques to get abundant yields from our farmland?, using our vast irrigation potentials?

He said finding answers to these and other questions will provide solution to the food crises that have become prevalent in some parts of the West Africa and the world, and if we genuinely desire to promote the cultivation and exportation of Rice as an alternative source of foreign exchange in Nigeria.

Meanwhile, Chief Audu Ogbe, former PDP Chairman, has called for the timely release of the N10 billion rice intervention fund to meet the needs of rice farmers.

Ogbe said during an interview that the release of the fund would ensure increased rice production and employment opportunities for the youths.

"There are lots of paddy rice that need to be processed and if the fund is available, beneficiaries can start to draw from the account," he said.

Describing the gesture as commendable, he, however, urged the government to increase the fund, saying that the current amount was inadequate.

Ogbe also expressed his belief that the gesture would generate interest in rice farming and therefore urged the government to introduce other initiatives.

The former PDP chairman also advised the government to focus more attention on developing a new generation of commercial farmers and make agriculture a business rather than a way of life.

He also urged the government to evolve medium and long term strategies for ending food crisis in Nigeria.

In a separate interview, Mr. Waheed Olagunju of Bank of Industry, said the bank had held series of meetings with other stakeholder organisations.

They include the Federal Ministries of Agriculture and Water Resources and Commerce, partner commercial banks as well as the Nigeria Agricultural Cooperative and Rural Development Bank on the modalities for the disbursement of the fund.

Olagunju gave assurance that applicants who met the banks' requirements would be able to access the fund within two weeks.

He said the bank was fully prepared for the disbursement because it had mobilised external support for rice production. "To show our interest, the bank has signed an MOU with the export unit of Thailand to identify reputable rice processors who have expressed desire to invest in Nigeria," he said. He said that the bank was working toward setting up small-scale rice processing centres across the country to meet their demands."This is not limited to the small farmers alone; the bank is properly positioned to accommodate the medium class also," he added.

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