Nigeria to Export Rice by 2019

Adebiyi Adedapo

Rice farmers in Nigeria are expected to commence exportation of the product by 2019 when the local consumption would have been met.

Country Manager, Afex Commodities Exchange Nigeria, Mr. Ayodeji Balogun, said local farmers in the country would in three years commence exportation of rice.

Balogun said during a briefing yesterday in Abuja that the organisation in partnership with the Federal Ministry of Agriculture and Rural Development has initiated a system that would link rural farmers directly to both local and international markets.

According to him, about 45,000 farmers have been provided with secured storage facilities and an Electronic Warehouse Receipt System to provide sufficient grains for local consumption and enhance export opportunities.

“We have 15 warehouses across the country and farmers in 30 kilometres radius can access these facilities. The farmers are broken into smaller units in terms of cooperatives to easily access the market. They are motivated to produce more while the market naturally adjusts itself. So, Nigeria in the next three years should be exporting rice,” he said.

Balogun added: “The news is that farmers can now guarantee their price at the end of harvests. Maize prize as at today is 80 per cent higher than the price last year. Last year, it was N36, 000 but today it is N55, 000. This is because the big companies that would have imported maize from Argentina and Brazil into the country are now forced to buy at the local market. They cannot import anymore because of the exchange rate.”

In a Public Private Partnership (PPP) agreement signed with the federal government, in 2014, AFEX Nigeria was expected to effectively organise the agriculture market and create value for farmers, raising national income.

He disclosed plans by the firm to commence export of other agricultural produce in partnership with the rural farmers.

Balogun stressed: “Our focus in the last one year is staple crops. This year, we are starting with export crops. We have been working with Nigeria Export Promotion Council (NEPC), Nigeria Export Import Bank (NEXIM) among others.”

He emphasised that farmers would no longer be at the mercy of buyers as they would get value for their farm produce.

Senior Vice President, Stuart Ponder, in his remarks, said agriculture commodities such as palm oil, cocoa export were major drivers of the economy until advent of oil.

He said it was important for the nation to consider modern and efficient market structure to support small holder farmers and eventually access loans.