Dangote Group to construct a new rice mill in Nigeria
Construction of the mill is reported to be already at an advanced stage.
NIGERIA – Fatima Wali Abdurrahman, the Senior Special Advisor to the Chairman of the Dangote Group has announced the construction of a new rice mill located on a 30-hectare plot in Wushishi, Niger State in Nigeria.
The new plant will boast a processing capacity of 32 tons of paddy per hour, which is comparable to that of the Imota rice mill, the largest in Africa.
While the exact investment cost for this industrial project has not been disclosed, it is part of the Niger Foods Initiative, an agricultural development program implemented by the Niger State government aimed at encouraging private sector involvement in agriculture through public-private partnerships.
The commissioning of this plant is expected to significantly enhance paddy processing capacity, helping to meet the demand for milled rice in Nigeria, which currently relies heavily on imports.
According to projections from the United States Department of Agriculture (USDA), Nigeria is expected to import 3 million tonnes of milled rice in the 2024/2025 period, accounting for 37% of its consumption needs.
Once operational, this facility is also anticipated to provide an additional outlet for farmers, which should, in turn, boost paddy production. This investment comes at a time when local paddy production has been strengthening in Nigeria in recent years.
Data compiled by the Ministry of Agriculture indicates that the sector has experienced an average annual growth rate of 2.95%, increasing from 8.1 million tonnes in 2020 to 9.1 million tonnes in 2024.
As the leading rice-growing region in the country, Niger State has increased its paddy harvest by 84,000 tonnes, reaching a total of 707,000 tonnes in 2024.
Currently, Nigeria relies on imports to satisfy 30% of its rice needs, with an average demand of 7.3 million tonnes between 2021 and 2023, according to the Food and Agriculture Organization (FAO).
Nigeria is both Africa’s largest rice producer and its primary rice importer, producing around 8.4 million tonnes annually while importing approximately 2 million metric tonnes each year.
In response to the need for increased domestic production and reduced import reliance, local authorities are advocating for more private sector investment in the rice industry.
Data from Statista shows that Nigeria’s rice production over the past five years has reached its highest levels since 1999.
Following a ban on rice imports, the country’s rice output grew from 2 million metric tonnes in 2015 to 9 million metric tonnes in 2021, as reported by the President of the Rice Farmers Association of Nigeria (RIFAN).
One of the major challenges faced by smallholder farmers in producing local rice has been a lack of access to appropriate technology.
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