Interesting Facts about Rice Farming in Nigeria

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rice farming in Nigeria

Rice farming is one of the most lucrative types of farming in Nigeria, although rice is classified as a cash crop for farmers, it is one of the most consumed staple foods and important cereal in Nigeria. Almost 7 million tonnes of rice are consumed per year in the country.

In July 2015, when the Federal Government of Nigeria announced plans to place a ban on the importation of rice into the country, Nigeria’s local rice production started experiencing growth and demand for locally produced rice also increased. The ban placed on the importation of rice caused the price of foreign rice to soar, turning the attention of Nigerians to locally produced rice. Creating an opportunity for interested individuals, farmers, organisations and even some state governments to go into rice production.

Rice mills like Abakali rice, Lake (Lagos and Kebbi State) rice, Anambra rice, Labana rice, as well as the production of Babban Gona’s rice and many others are among the producers of rice in Nigeria. There are more opportunities in the rice farming sector for intending rice farmers.

rice farming in Nigeria - rice field

Facts You Should Know About Rice Farming in Nigeria

  1. Nigeria is the largest producer of rice in Africa.
  2. Rice production in Nigeria.
  3. Rice is one of the most consumed staple foods in Nigeria
  4. Contribution to economic growth.

Nigeria is the Largest Producer of Rice in Africa

Nigeria is the largest producer of rice in Africa, producing about 8,435,000 tonnes annually, followed by Egypt, Madagascar, Tanzania and Mali according to the Food and Agriculture Organisation of the United Nations (FAO).

Ironically, Nigeria is the 3rd highest importer of milled rice in the world, importing about 2 million metric tonnes of rice into the country.

There is a need for Nigeria to improve its rice production capacity.

Rice Production in Nigeria

According to available data, Nigeria’s rice production over the past 5 years has been at the highest since 1999. The country’s rice production grew from 2 million metric tonnes in 2015 after the ban on rice importation to 9 million metric tonnes in 2021, this is according to a statement by the President of the Rice Farmers Association of Nigeria (RIFAN).

One of the major hindrances for the production of local rice in the country for smallholder farmers has been the lack of appropriate technology.

Rice is One of The Most Consumed Staple Foods in Nigeria

Rice alongside maize is one of the most consumed staple foods in Nigeria. The country’s rice consumption per capita is currently pegged at 32kg, which is a little lower than the global rice consumption per capita at 53.9kg. Locally produced rice accounts for about 57% of the rice consumed in Nigeria, while the 43% deficit is from rice smuggled or imported into the country illegally.

According to data published by the Nigeria Bureau of Statistics, rice constitutes 8.69% of household food expenditure and 4.92% of total household expenditure in 2019.

Contribution to Economic Growth

Despite the contribution of oil to the economy reducing by 10.73%, Nigeria’s GDP for Q3 2021 grew by 4.03%, this was partly because agriculture in Nigeria contribution to the country’s GDP grew by 6.16% from 23.78% in Q2 2021 to 29.94% in Q3 2021. Crop production, which includes rice production, accounted for 92.45% of agriculture’s GDP in Q3 2021.

According to data available on the Rice Farmers Association of Nigeria website, the global advocate for all segments of the Nigerian rice industry, there are over 12.2 million Nigerians (about 6.1% of the country’s population) registered as members of the association in various aspects of rice production, marketing and sales.

rice farming in Nigeria - rice plant

In 2020, Babban Gona successfully launched its pilot rice farming program in 5 Local Government Areas in Jigawa State with over 800 farmer members across 1,250 acres of land.

Babban Gona currently provides support for our smallholder members who are into rice farming in the following states Jigawa, Niger, Benue, Cross River, Kebbi, Kwara, Nasarawa and Taraba.

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Frank Altman

Non-Executive Director

Pioneer of secondary markets for community development and $3.5B+ in managed funding.

Frank Altman is the founder and first CEO of the Community Reinvestment Fund (CRF), USA, where he pioneered secondary markets for economic development loans. Under his leadership, CRF funded over $3.5 billion in loans across 50 U.S. states. He was instrumental in designing the federal New Markets Tax Credit and is an advisor to the Federal Reserve Bank of San Francisco.

Altman is an Ashoka Senior Fellow and the author of A New Capitalism: Creating A Just Economy That Works For All. He brings global expertise in risk management and capital structures to Babban Gona.

Michael Jainzik

Independent Non-Executive Director

Michael Jainzik works as an independent consultant and brings his extensive expertise in the areas of agricultural finance, international investments, risk management and corporate governance. He is currently based in Rome, Italy.
 
From 2001 to 2011, Michael worked as an investment professional at KfW Development Bank, focusing on international debt financing and equity investments in investment funds and banking institutions, mainly in the areas of agricultural finance and microfinance. From 2011 to 2015 he worked as Director of KfW’s office in Windhoek. In this role, he helped manage and develop KfW’s EUR 250 million portfolio in Namibia. From 2015 to 2017, he took on the position of Head of Corporate Development at Access Microfinance Holding, where he was responsible for structuring and leading a merger process between Access Holding and another company.
 
Prior to joining Babban Gona, Michael served as a non-executive director in Access Bank Azerbaijan (2006-2011, Chairman), Belarusian Bank for Small Business (2008-2011), Rural Impulse Fund II Luxemburg (2010-2011) and AB Bank Zambia (2011-2016).
 
Michael studied economics and management at the Universities of Lüneburg and Witten/Herdecke (Germany) and at ETEA – Universidad Loyola in Córdoba (Spain) and holds a Master’s degree in economics and management.

Alhaji Bello Maccido

Board Chairman

Over 32 years of executive leadership in corporate and investment banking.

Alhaji Bello Maccido is a distinguished leader in the Nigerian financial services sector. He currently serves as the Chairman of FBN Merchant Bank Ltd. and has previously held board positions at FBN Holdings Plc, First Bank of Nigeria Plc, and Legacy Pension Manager Limited.

He holds the traditional title of “Wakilin Sokoto” and is a Fellow of both the Chartered Institute of Stockbrokers and the Chartered Institute of Bankers of Nigeria.

Alhaji Maccido’s educational background includes an LL.B from Ahmadu Bello University and an MBA from Wayne State University. He is a Barrister at Law (BL) of the Supreme Court of Nigeria and an alumnus of executive programs at Harvard Business School and IMD Lausanne.

Muhammad Sanusi, CON

Chairman of the Board

His Highness Muhammad Sanusi was appointed the 10th Governor and Chairman of the Board, Central Bank of Nigeria on 3 June 2009. He earned Bachelor’s and Master’s degrees in Economics from the Ahmadu Bello University, Zaria, and also has a first-class degree in Sharia and Islamic Studies from the African International University, Khartoum, Sudan.
 
From working as a lecturer at the Ahmadu Bello University, where he taught Economics, he joined the banking industry in 1985, and by January 2009 had risen to General Manager and Group Managing Director of First Bank of Nigeria PLC, Nigeria’s oldest and biggest bank. Mallam Sanusi has been conferred with a National Award of Commander of the Order of the Niger (CON) by the President of the Federal Republic of Nigeria and has also been awarded the “Global Central Bank Governor for 2010” by The Banker Magazine, a publication of the Financial Times.
 
He was also voted Central Bank Governor of the Year for Sub-Saharan Africa 2009 (an award he won again in 2010) by Emerging Markets, a publication of Euromoney Institutional Investors. In 2011, Mr. Sanusi was named Forbes Africa Person of the Year for 2011. He was also listed by TIME Magazine as one of the 100 most influential people in the world. Kola Masha (Managing Director) Prior to Babban Gona, Kola was a Managing Director and CEO of a major subsidiary in the Notore.

Lola Masha

Non-Executive Director

Dr. Lola Masha is a seasoned technology leader with over 15 years of experience at the intersection of mobility, technology, and agriculture. She currently serves as a Partner at Antler, a global early-stage venture capital firm. Previously, she was the Regional General Manager for North, East, and West Africa at Bolt, overseeing strategic operations in a high-growth mobility sector.

Her career includes leadership roles as Director of Trust and Safety at OLX Group (overseeing 30+ markets) and Country Manager for OLX Nigeria. She was also one of the earliest employees at Google Sub-Saharan Africa. Dr. Masha holds a PhD in Chemical Engineering from the University of California, Berkeley, and a B.Sc. from the University of Virginia.

Kola Masha

Managing Director

First leader of a for-profit social enterprise to win the Skoll Award for Social Entrepreneurship.

Prior to co-founding Babban Gona, Kola was CEO of a subsidiary in the Notore Group, where he led a commercial strategy to sell one million tons of fertilizer and raised $130 million in equity.

He has held leadership roles at GE and Abiomed and served as a Senior Advisor to the Nigerian Minister of Agriculture.

Under his leadership, Babban Gona became the first for-profit social enterprise to win the prestigious Skoll Award for Social Entrepreneurship, recognizing the organization’s innovative approach to transforming smallholder farming in Nigeria.

He holds an MBA with Honors from Harvard and a Master’s in Mechanical Engineering from MIT.

Kola Masha

 

Prior to Babban Gona, Kola was a Managing Director and CEO of a major subsidiary in the Notore Group, one of Nigeria’s leading agricultural conglomerates, where he raised US$24 Million to develop an integrated agricultural trading, production and processing business.

Furthermore, he led the development and execution of Notore’s commercial strategy across West and Central Africa, preparing the company to sell one million tons of fertilizer and establish a modern seed business.

He led the effort to raise $130 million in equity and the restructuring of $360 Million in debt. Kola brings significant leadership experience in venture capital, corporate finance, business development, marketing and operations, across four continents with multiple global companies, including GE, Notore and Abiomed. In addition, Kola brings extensive public sector experience as Senior Advisor to the Nigerian Minister of Agriculture.

In recognition for his leadership in driving positive change on the African Continent, he has received several global awards including the prestigious Eisenhower Fellowship, a leading leadership institute led by General Collin Powell and appointed to the Board of the African Enterprise Challenge Fund, a $250 Million fund that awards grants and repayable grants to private sector companies to support innovative business ideas in agriculture, agribusiness, renewable energy, adaptation to climate change and access to information and financial services. Kola holds an MBA (Honors) from Harvard and a Masters in Mechanical Engineering from the Massachusetts Institute of Technology.