Rossland's
Rice Report
information and analysis that fuels sustainable development
Editorial Comment:
Nigeria's Rice Development Strategy:
Getting it right this time
he Nigerian government
through the Federal Ministry of
A g r i c u l t u r e a n d Wa t e r
Re s o u r c e s a n d s e c t o r
stakeholders is currently in the
process of putting together a
development strategy document for
the rice sector. This process was
occasioned and facilitated by
Nigeria's selection and participation
in the Japanese International
Development Agency's (JICA)
Coalition for Africa's Rice
Development (CARD) project
expected to run for 10 years from
2009 with the key objective to
double rice production in the
African participating countries.
This is a singular opportunity to set
the course for the development of a
foreign exchange conserver and (a
potentially) foreign exchange
generating product sector. Nigeria
spends $1.3 billion annually on rice
imports- a huge drain on the
reserves. Nigerians together spend
an average N130 billion on rice
consumption every year. But Nigeria
can potentially produce enough to
feed herself and supply neighboring
countries. The stakes are certainly
high. We either get it right this time
or perish!
Enterprise development series:
Farmer Extension:
Germination testing for
good seed establishment
and harvest
Good seeds when planted produce
good yields and harvests, which help
farmers to earn more income and
reduce poverty. In this series
targeted at subsistence farmers, we
highlight briefly, how farmers can do
(Culled from Rice Seed Production by Farmers: A Practical Guide from WARDA)
It is important to consider the
direction and nature of Nigeria's
National Rice Development Strategy
(NRDS) under the CARD framework.
If Nigeria adopts Option 2 of the
CARD NRDS, the NRDS becomes the
real national sub-sector strategy for
the country after passing through
the National Council on Agriculture.
Thereafter the NRDS would be
linked directly with the budget
process and the mid-term sector
strategy. In summary, the NRDS
could influence on the decision to
be made by both government and
donor to support the sector. Given
this scenario, it is expedient for
donors and the private sector (that
have an interest in Nigeria's rice
sector trade and development) to
be involved as much as possible in
the NRDS development process to
shape the strategy to have in its
orientation and implementation - a
market-led and private sector
driven approach where
competitiveness, profitability and a
business operating model is
dominant in the final NRDS
document. The NRDS should clearly
assign roles and responsibilities
between the public and private
sectors for implementation of
germination testing before sowing
their seeds:
 Randomly select 100 grains
of the seed to be sown;
 Take a shallow basin or tray;
 Place a wet cloth in the
basin or tray;
 Place the 100 grains on the
cloth
 Cover the grains with the
cloth
 Place the basin in the shade.
Water (moisten) as
No. 003
activities to achieve set targets and
objectives.
A private sector, market-led
development approach offers more
sustainability and would be more
attractive to donors considering
that there are 12 NRDS (from 12
participating countries) seeking
donor assistance in the pilot phase.
Unfortunately, this approach may
not align with the orientation and
thinking of public servants who are
at the moment driving the
development process for Nigeria's
NRDS. Our suggestion and
submission is that additional
technical resources (local or foreign
expertise in agric-business sector
strategy formulation and
implementation) should be made
available to the drafting team to
help fine tune and refine the zero
plus draft document at hand. A
request from the FMA&WR for this
technical support, in our opinion,
would be welcomed (and indeed
could be paid for!) by the rice
private sector and donor funded
agric/rice projects operating in the
country considering the value
addition this would have on the
NRDS document.
necessary;
 After about a week, count
the number of grains that
have germinated:
If more than 80 of the 100

grains have germinated, the
seed is good;
If less than 80 of the 100

grains have germinated,
then seed quantity should be
increased at Sowing.
News in Brief
 Ofada Veetee Rice -the 75,000 pa modern rice mill -
located in Itori, Ewekoro local government area of
Ogun State has commenced purchase of paddy to
feed its mill. The mill commissioning is expected to
happen sometime in March and will be done by the
Governor of Ogun State.
 The Niger Delta Development Commission has
entered a 25-year pact with Agritech to increase
rice cultivation in the oil-rich Niger Delta area.
 Stallion Group - major importers and
representatives of several Thai long grain rice
brands in the Nigerian markets has commenced
construction of a modern parboiling and rice
milling plant in Kano. The company has also
recently engaged ex-IRRI senior agronomist- V.
Balasubaramanian- to assess potentials and
challenges of contract and mechanized farming
schemes in Nigeria.
 There are indications that Notore Chemical
Industries may commence large scale rice milling
before end of 2009 to provide uptake opportunities
for farmers using its mainstream product-fertilizer.
 Olam in negotiation with Federal Government
through the Anambra State Government to take
over abandoned federal-owned rice mill in the
State.
 Dr Dick Cook- Managing Director-of USAID funded
MARKETS program completes team with project,
has returned to Mali. MARKETS project is currently in
search of a new Managing Director (Trevor Bullen,
acting Chief of Party recruited by Chemonics
International, could not get approval from USAID!)
to continue its market development work which
includes facilitating brokerage relationships
between rice farmers and processors; the Olam
Makurdi rice out grower scheme being one of such
sites.
 Immediate past Minister of Commerce and Industry
-Engr. Charles Ugwuh--in partnership with Chinese
investors has concluded plans to commence large
scale rice milling in Ebonyi State in demonstration
of a cluster concept that provides milling facilities
within areas of consistent large scale production of
paddy. As part of the concept, the group plans to
situate a mill in Niger State in not too distant time.
 Japanese Government has committed $150m to
CARD; and another $100m by the Ministry of
Finance. In another development, the World Bank
is to provide $4.2 billion for agric (including rice)
sector development in developing countries mostly
Africa. A two-day workshop is holding in Abuja in
the last week in February by the FMA&WR and World
Bank office in Nigeria to develop action plans for
Nigeria in other to participate in this new initiative
aimed at combating the global food crisis.
 Officially recorded shipments of rice at Nigerian
ports were 300,000 tons in 2007; meanwhile
recorded cargoes received at Benin Republic ports
in 2007 were 1.5m tons.
Market Place
Wanted: 001 -Nerica 1, Faro 44 and 52 wanted in
large quantities; delivered to a factory in South West
Nigeria.
Wanted: 002 - Do you have non-performing assets
such as a big rice mill or a rice farm and want it
reactivated or put under new management or sold
outright? Pls call the lines below.
Rossland's Rice Sector Report is published by Rossland Consulting Limited; and is read by senior decision makers in the public and private sectors of the
Nigerian and West African rice economy including farmers All enquiries should be forwarded to the Editor, Rice Sector Report, 20, Rwang Pam Street, Works and Housing Estate,
Gwarinpa, FCT-Abuja, Nigeria. Email: rosslandconsult@gmail.com. Mobile: 0803-7186228, 0803-6236181.
State Rice Policy Update:
 Ogun State: Governor Gbenga Daniels
Ogun State has begun the process of developing a Rice
Policy and Investment Strategy with facilitation support
from the DFID funded PrOpCom program. The state
government had identified six cash crops for priority
development from 2007 to 2011 and rice being one of the
six is taken further to have its own development policy
objectives and investment strategy. A key focus of the rice
policy is to increase low land rice cultivation to support an
import-substitution rice production strategy that will
enable the state attract investors to set up modern
processing mills to feed existing imported rice distribution
centers in nearby Lagos. Ogun state will benefit from such
strategy due to its proximity to Lagos - the entry point and
distribution center for officially imported rice into the
country. The Ofada Veetee Rice modern mill is a result of
this strategy.
 Kano State: Governor Shekarau
Taking a similar path, Government of Kano state is billed to
have a rice policy retreat soon; senior government officials
and key private sector operators are expected to be in
participation. Outcome of this retreat will be development
of a rice policy and investment strategy for the state. An
investment forum to showcase opportunities and
potentials for rice production and processing in the state is
in the works.
Other state governments are working in the direction of
having a rice policy in light of the need to develop the
sector to conserve foreign exchange and to become a
foreign exchange earner for the country.
Rice Levy and duty
Rice levy and duty stands at 30% in compliance with the
ECOWAS CET. The NESG Rice Network and other
stakeholders have joined forces to make a case for
upward review to save local rice production and
processing. Meanwhile, an interactive session with
the Agriculture Committees of the National Assembly
is being planned by the Network to push for
legislation to support poor farmers in the country.
Donor Projects Update:
 JICA's Coalition for Africa's Rice Development (CARD):
Nigeria was selected as one of 12 countries for pilot
implementation of CARD, aimed at doubling rice production in
Africa. A National Rice Development Strategy document is being
prepared by the FMA&WR with facilitation support from
JICA/Nigeria. Other multilateral and bilateral donors such as FAO,
World Bank, USAID, DFID, CIDA, etc that have an interest in
supporting Nigeria's rice development are expected to use this
platform document to lend their support and development
assistance. Another workshop of stakeholders is planned soon after
the two day workshop held in January 28-29, 2009 in which a zero
draft NRDS was presented by FMA&WR to stakeholders.
 PrOpCom:
Ofada rice value chain gets additional support.
This DFID funded program has dispensed further assistance to the
value chain with recruitment of a BDS expert to develop a work
plan covering four years 2009-2013. The work plan (when
completed) will be used by the emerging Ofada Rice Network (in-
formation) to raise funding support from its members which
consists of public and private sector organizations, and interested
donors, to undertake activities that seeks to address productivity
issues (such as poor planting materials, weaver birds infestation,
etc), improve market efficiency, increase competitiveness and
reduce segmentation and poor information which tends to increase
both transaction and transformation costs in the chain. Presently a
50kg bag of Ofada rice sells for N15-18,000; while imported rice
sells for N7-8,000. Already, there are indications that JICA may be
considering selecting Ofada rice as a product for development in its
“one product-one local government” project initiative.