Lee Group plans US$15M investment in Nigeria’s rice sector

NIGERIA – The multinational conglomerate Lee Group is set to invest US$15M in the rice sector in Nigeria’s Nasarawa State.

This announcement was made during a meeting on Friday, April 25, between a delegation from Lee Group and Abdullahi Sule, the state’s governor.

The project will include the construction of a modern rice mill designed for rice production, as well as the installation of an irrigation system to enhance productivity and promote sustainable agricultural practices.

A significant aspect of the project is the introduction of a new rice variety developed by the Lee Group.

According to Wilkins Lam, the project director for the group, this new variety is expected to yield 10 tonnes per hectare, which is five times higher than the yield of conventional rice, estimated to average between 2 to 3 tonnes.

“It also has the advantage of regrowing after harvest, thus reducing replanting costs for farmers,” stated a message on the state government’s website.

If successful, this investment will help strengthen Nasarawa State’s position in Nigeria’s rice industry.

Data from the Nigerian Ministry of Agriculture indicates that in 2021, Nasarawa State ranked as the sixth-largest rice-producing region in the country, following Niger, Kogi, Benue, Kano, and Kwara states. It accounted for 5.1% of the total paddy production, which amounted to 8.1 million tonnes.

Additionally, this project is expected to boost local rice production, create jobs, and enhance food security in the region.

It’s worth noting that Nigeria currently relies on imports for 30% of its rice needs, estimated at an average of 7.3 million tonnes between 2021 and 2023, according to the Food and Agriculture Organization (FAO).

Nigeria is both Africa’s leading rice producer and its primary importer, producing approximately 8,435,000 tonnes annually while importing around 2 million metric tonnes each year.

In light of the necessity to further increase domestic production and reduce import dependence, local authorities are advocating for private sector investment in the rice sector.

According to data from Statista, Nigeria’s rice production over the past five years has reached its highest levels since 1999.

The country’s rice output grew from 2 million metric tonnes in 2015, following a ban on rice imports, to 9 million metric tonnes in 2021, as stated by the President of the Rice Farmers Association of Nigeria (RIFAN).

One of the major challenges for smallholder farmers in producing local rice has been the lack of access to appropriate technology.

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