Rice millers accuse FG of import waivers as local mills struggle with costs

Rice millers in Nigeria have accused the federal government of allowing imported semi-processed brown rice into the country, warning that the move is hurting local processors and farmers. The Rice Processors Association of Nigeria (RIPAN) said the imports, including reported levy waivers, give foreign suppliers an advantage over Nigerian mills already battling high paddy, electricity and diesel costs.

RIPAN President Mohammed Abubakar Maifata raised the concerns at a meeting with government officials, farmers and industry representatives. He said he showed the authorities a video of rice being offloaded at Port Harcourt to support the association's case.

Import waiver sparks competition fears

Maifata warned that continued importation could undermine investments in local rice production, no matter how much money is committed to developing the sector. He said Nigerian producers would struggle to match production costs in countries such as India and Thailand, which have established rice industries.

A RIPAN member, who spoke anonymously, criticised a reported arrangement that allowed one or two individuals to import semi-processed brown rice after the removal of a 30 per cent levy. The processor argued that the arrangement could give selected importers an edge over local millers, who still bear the cost of processing rice in Nigeria.

Alhassan Yusuf, general manager of Labana Rice Mills, also alleged that selective waivers for brown rice imports were putting local farmers and processors at a disadvantage. He suggested that government extend any such import arrangement to all millers while ensuring that local farmers receive adequate support.

High costs squeeze local mills

The dispute comes as the federal government seeks to reduce the price of a 50kg bag of milled rice from the current N60,000 to N67,000 range to between N55,000 and N57,000. Government officials put the average production cost of a 50kg bag at N49,389.23 and argue that market prices are too high.

Rice processors maintain that paddy, electricity, diesel and other operating expenses make it difficult to cut prices without hurting their businesses. The managing director of Umza Rice Mills disclosed that the company spends about N100 million monthly on electricity, with diesel costs potentially bringing the combined expense close to N200 million.

Processors have called for tax relief, improved electricity supply and measures to increase domestic paddy production. They argue that addressing those challenges would help local mills compete better and make rice more affordable for Nigerian consumers.

What it means for the market

The standoff puts pressure on the government's push to lower rice prices while protecting local milling capacity. Any waiver that favours a few importers could weaken confidence in domestic processing, especially when energy and paddy costs remain high.