AN OVERVIEW OF THE NIGERIAN RICE ECONOMY

PROF. TUNJI AKANDE

NISER, IBADAN

INTRODUCTION Nigerias Population about 130 million

Agriculture contributes 40% of GDP Major staples Yam, cassava, sorghum, maize, millet and rice Rising per capita rice consumption, about 10% per annum Rising domestic production and imports Government intervention occurs.

RICE PRODUCTION Area cultivated and output are rising Yield is also rising, but, increased output is due mainly to expansion in area cultivated

Fig. 1: Area Cultivated and Rice Output in Nigeria

3,500 3,000 2,500
'000

2,000 1,500 1,000 500 0

61 64 67 70 73 76 79 82 85 88 91 94 19 19 19 19 19 19 19 19 19 19 19 19 19 20 97 00

Area Output

Source: PCU

Fig. 2: Yield of Rice in Nigeria

3 2.5 2 (tons)/ha 1.5 1 0.5 0

Indicators

Production Import Self-reliance ratio Total Consumption Per capita consumption

Production Import Self-reliance ratio Total Consumption Per capita consumption

19 61 19 63 19 65 19 67 19 69 19 71 19 73 19 75 19 77 19 79 19 81 19 83 19 85 19 87 19 89 19 91 19 93 19 95 19 97 19 99
Source: PCU

Table 1: Rice Trends in Nigeria and the Rest of West Africa

Means 1961 75 Means 197683 Nigeria 332 800 2 036 99% 178 199 3 806 222 420 756 54% 833 640 12 West Africa without Nigeria 1 779 376 416 183 65% 1 178 753 21 2 344 073 894 073 56% 1 950 821 27 2 822 635 1 760 884 42% 2 973 885 30 4 041 384 2 107 146 50% 3 985 721 34 2 306 794 334 974 77% 1 599 609 18 3 189 833 525 307 79% 2 248 113 22 Means 1984 95 Means 1996 99

RICE IMPORTS Not significant in 1960s and early 1970s By mid- 1970s, rice imports were very significant Nigeria today imports about 1 million metric tons, spending nearly US $300 million

Fig. 3: Quantity of Nigerias Rice Imports

800 700 600 500 400 300 200 100 0
61 65 63 67 69 71 73 75 81 77 79 83 85 87 89 91 93 97 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 95 19 19 99

('000 tons)

Source: FAO STAT

Fig. 4: Value of Nigerias Rice Import

450 400 350 300 million US$ 250 200 150 100 50 0

Fig. 5: Evolution of the share of the main staples in Nigerian average food consumption in calories terms.
100%

80%

60%

40%

20%

0% 1961

19 62 19 64 19 66 19 68 19 70 19 72 19 74 19 76 19 78 19 80 19 82 19 84 19 86 19 88 19 90 19 92 19 94 19 96 19 98
Source: FAO STAT
Sorghum Millet Maize Rice (Milled Equivalent) Yams Cassava
1965 1969 1973 1977 1981 1985 1989 1993 1997

RICE DEMAND Demand is soaring, due to :

!Increasing population ! Rising income levels ! Rapid urbanization ! Changes in family occupational structure

Per capita consumption per annum is about 24.8kg Rice consumption represents about 9% of total calorie intake

PROFITABILITY
Rice production is profitable in Nigeria: across rice-based production systems in relation to other crops under different technologies of production

ENVIRONMENTAL ISSUES

There is a national policy on environment, but no direct link with the problems associated with agricultural production Bush burning as a method of clearing farmland is discouraged Most Nigerian rice growers use little improved varieties, little fertilizers and little agrochemicals Rice cultivation in Nigeria is not more intensive than other crops

T ab le2: AT axon om yof N igeriasT rad eP olicyonR ice P eriod P rior toA pril 1974 A pril 1974-A pril 1975 A pril 1975-A pril 1978 A pril 1978-June1978 June1978-O ctober1978 O ctober1978-A pril 1979 P olicyM easures 66.6%tariff 20% 10% 20% 19% Im portsincontainersunder50kgw ere

Table 2 (continued)

Period January 1980 O ctober 1980 D ecem ber 1980

Policy M easures Im port license issued for 200,000 tones of rice Rice under general im port license w ith no quantitative restrictions Presidential Task Force (PTF) on rice w as created and it used the N igerian N ational Supply Com pany to issue allocations to custom ers and traders PTFcom m enced issuing of allocations directly to custom ers and traders in addition to those issued by N N SC PTFdisbanded. Rice im portation placed undergeneral licenserestrictions

M ay 1982

January 1984

Table 2 (continued)

Period July 1986

1995 1996 1998 1999 2000 2001

Policy Measures Introduction of SAP and the abolition of Commodity Boards to provide production incentives to farmers through increased producer prices 100% 50% 50% 50% 50% 85%

RICE POLICY (a) Trade Policy Nigeria has employed trade measures such as Tariff, import restrictions and outright ban at various times

OTHER POLICIES AFFECTING THE RICE SECTOR ARE Exchange rate policy (in respect of imports) Fiscal policy and public spending in agricultural sector Fertilizer policy National seed policy Land policy

INTERNATIONAL POLICY ENVIRONMENT

No AoA reduction agreement No regional trade agreement on rice No bilateral trade agreement

POVERTY PROGRAMME

NAPEP (National Poverty Eradication Programme) NEPAD (New Partnership for African Development)

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