NIGERIA—Nigeria, which currently imports 25% of its rice needs, is intensifying efforts to boost local production through increased national and international cooperation, with Lagos State at the forefront.
On September 5, Babajide Sanwo-Olu, the Governor of Lagos State, announced a new cooperation agreement with Yihai Kerry Arawana (YKA), a subsidiary of the Singaporean agribusiness giant Wilmar International.
The partnership aims to strengthen Nigeria’s rice value chain by leveraging YKA’s expertise in modern farming practices, technology transfer, and capacity building.
“YKA will provide us with technical and advisory support to optimize rice production efficiency using modern farming practices, training, and other ancillary services. Together, we can refine every aspect of the rice production process, from cultivation to milling,” said Governor Sanwo-Olu.
Yihai Kerry Arawana, established in 2006, has a solid footprint in China’s rice sector, where it produces several flagship rice brands, including “Arawana,” “Xiang Na Lan,” “Wonder Farm,” “Gold Lingots,” “Neptune,” and “Golden Carp.”
With this experience, YKA is expected to bring significant expertise and advanced technology to Nigeria’s rice production efforts.
The cooperation comes at a crucial time for Lagos State, which houses the Imota Rice Processing Plant, inaugurated in January 2023.
Touted as Africa’s largest rice mill, the Imota facility has a processing capacity of 32 tonnes of paddy per hour. However, the plant currently faces a supply gap, requiring over 240,000 tonnes of paddy annually, while local production in Lagos State stands at around 90,000 tonnes.
To address this gap, the Lagos State government has been increasing investments in the rice sector, seeking both local and international partnerships. The collaboration with YKA is expected to help close the production shortfall and contribute to Nigeria’s broader goal of rice self-sufficiency.
Furthermore, Lagos State is also exploring new financing models, including public-private partnerships (PPPs) and credit facilities, to support rice farmers and enhance the rice value chain.
The government has emphasized the importance of such partnerships in bolstering local production and reducing the country’s dependence on imports, which remains a significant concern amid global food security challenges.
The Nigerian government, in collaboration with state governments like Lagos, is also working on several policies and incentives to boost local rice production. These include subsidizing inputs, providing access to improved rice varieties, and developing irrigation infrastructure to support all-year-round farming.
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