Rice smuggling threatening local industry —FG

By Baba Joy-Yesufu

The Federal Government on Monday expressed fresh concerns over the growing smuggling of foreign rice into Nigeria, warning that the trend is crippling local production and threatening the country’s food security.
The Minister of State for Industry, John Owan Enoh, raised the alarm during a meeting with the Rice Processors Association of Nigeria in Abuja.
The meeting focused on the challenges affecting Nigeria’s rice value chain and explored policy measures aimed at strengthening domestic production and protecting local processors.
Owan Enoh said the government was ready to work closely with industry players and the private sector to safeguard the long-term sustainability of Nigeria’s rice industry.
He stressed that progress in the sector would depend on collective responsibility across the value chain.
The minister also reaffirmed the Federal Government’s commitment to ensuring steady rice supply nationwide while keeping prices affordable for consumers.
However, he warned that the influx of cheaper foreign rice into Nigerian markets poses a serious threat to local millers and farmers.
According to him, when smuggled rice is sold far below the cost of locally processed rice, it discourages investment and weakens Nigeria’s agricultural and industrial base.
Owan Enoh therefore urged industry stakeholders to provide credible data on the challenges confronting the sector to help government design effective policies.
“Accurate information is critical for government to respond appropriately and strengthen the sector,” he said.
Rice remains one of Nigeria’s most consumed staple foods and plays a key role in employment generation and national food security, the minister added.
Earlier, the Director-General of the Rice Processors Association of Nigeria, Andy Ekwelem, described smuggling as one of the biggest threats facing the country’s rice industry.
Ekwelem said rice smuggled through Nigeria’s land borders bypasses import duties and regulatory checks, allowing it to be sold at prices far lower than locally processed rice.
He revealed that the impact has been severe for local processors.
Out of over 150 rice mills across the country, nearly 90 have shut down, while many others now operate between 30 and 70 per cent of their installed capacity.
Despite the challenges, he said the sector remains a major contributor to the Nigerian economy.
According to him, the rice industry provides direct employment to over 100,000 people and supports more than 10 million farmers across the agricultural value chain.
Ekwelem also noted that farmers and processors are battling rising production costs, insecurity in farming communities and poor infrastructure.
He added that the recent drop in rice prices in some markets should not be mistaken for increased domestic production.
Rather, he said the development is largely driven by organised smuggling networks moving large volumes of rice through illegal border routes.
Stakeholders at the meeting called for stronger border enforcement to curb illegal imports and revive the local rice industry.
They argued that decisive action against smuggling would allow local mills to expand production, boost farmers’ output and strengthen Nigeria’s food security.