The Federal Ministry of Agriculture and Food Security and the Rice Processors Association of Nigeria (RIPAN) met on 6 October 2026 to argue over the prevailing price of milled rice, which the government says is too high and the processors say cannot be cut without harming the industry.
Key points presented at the meeting included: the ministry’s survey showing an average production cost of N49,389 per 50 kg bag; the current market price ranging between N60,000 and N67,000; the processors’ claim that paddy costs and import competition drive the high retail price; and calls for government incentives rather than price caps.
**What did the government claim?**
The ministers, led by Senator Abubakar Kyari and Dr Aliyu Sabi Abdullahi, cited a market analysis that placed the average cost of producing a bag of rice at N49,389.23. They argued that the existing price of over N60,000 per bag was “excessive and indiscriminate,” stressing that the government has mechanisms to protect citizens while also safeguarding farmers and millers. Dr Abdullahi warned that “bad eggs” within the processors’ association were undermining the sector and urged internal discipline.
**How did the processors respond?**
RIPAN president Mohammed Abubakar Mai Fata, representing Umza Rice Kano, countered that illegal imports and smuggling were inflating market prices. He highlighted that the cost of paddy – the raw material – had risen sharply after the Anchor Borrowers Programme’s funding was reduced in 2023. Mai Fata noted that farmers now pay over N50,000 for fertilizer and N2,000 per litre for diesel, pushing paddy prices to N450,000‑N500,000 per tonne, which in turn lifts milled rice prices.
**What challenges do millers face across the country?**
Millers from Kebbi, Kano and other states reported several constraints: erratic power supply forcing reliance on costly diesel generators, high energy costs, insecurity that hampers the movement of paddy, and competition from imported rice. Mallam Alhasan Yusuf of Labana Rice Mills argued that selling below N58,000 per 50 kg bag would cause losses, and called for tax waivers and other incentives. Other operators echoed concerns about the selective waiver granted to import brown rice, which they say disadvantages local processors.
**What solutions were suggested?**
Stakeholders proposed a mix of short‑term and long‑term measures. Yusuf advocated for government‑subsidised sales to processors, similar to a scheme once used in Brazil. Economists such as Ibraheem Maigari warned against direct price controls, urging instead to lower input costs – fertilizer, energy, transport – and to boost the Anchor Borrowers Programme, irrigation, rural roads and storage facilities. Human‑rights activist Debo Adeniran called for tax holidays, low‑interest loans and industrial villages to create a conducive environment for rice‑related businesses.
The meeting concluded without a definitive agreement, as processors insisted that any price reduction must be accompanied by policies that secure paddy supply, curb illegal imports and address the broader cost structure of rice production.