Rice millers decry import waiver and rising production costs

He explained that high production costs and a lack of agricultural subsidies in Nigeria make it impossible for local millers to compete with imported rice from countries that heavily subsidize their farmers. Dama highlighted that expenses such as labor costs, for tasks like drying, washing, loading, and offloading rice, have significantly increased. He cited an example where the cost to load a bag of rice onto a truck rose from N15 to N500.

This disparity, coupled with the reliance on inconsistent power supply, has led many rice millers to cease operations. In July 2024, the Federal Government approved a 150-day duty-free import window for certain food commodities, including rice, to combat food inflation. Although this was initially a temporary measure, in 2026, broader fiscal reforms reduced import duties on agricultural products, including rice, rather than eliminating them entirely.

The All Farmers Association of Nigeria has also commented on the continued influx of imported rice due to a "renewal of the import waiver."