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What's New? Sustainable rice production in Nigeria

What’s new?
Rice is a critical staple crop in Nigeria, yet the country has to import a significant portion of it (in 2016, the UN Food and Agriculture Organisation reported the country imported 2.3 million tons, or half its rice demand), causing the price of a bag of rice to double. The President of Nigeria has made rice farming a priority, and Dangote—the largest manufacturing industrial conglomerate in West Africa—has committed to invest $1 billion USD to establish an inclusive rice value chain in six Northern Nigerian states to produce one million metric tons of rice.

We’re working with Dangote to define the baseline of rice farmers, shape a scale-up model, sharpen the out-grower model, calculate farmers’ profits and losses, identify aggregation centers and mills, and create a high-level implementation plan with investment requirements.

Where will you be based?
Palladium’s teams will be based in Nigeria and the Netherlands.

Who will you be working with?
This is a multi-actor project. We are working with Dangote as the beneficiary; the Bill & Melinda Gates Foundation as the funders; IDH - Sustainable Trade Initiative as the main contractor; and New Foresight, a sub-contractor.

What’s your goal?
We will establish a highly productive, inclusive, scalable, and profitable rice out-grower model to increase Nigerian rice production.

How will you deliver Positive Impact?
Establishing this model will yield sustainable results for Dangote, farmers, and consumers. The model will increase productivity, incomes, and resilience for 300,000 farmers as well as improve food self-sufficiency and food security in Nigeria by adding 1 million metric tons of rice to the market. Markets for farm inputs (seeds, fertilizer, agro-chemicals, mechanization, innovative financial services) will also be developed. Additionally, a profitable model for farm services, aggregation companies, and Dangote will result and be replicable at scale.

How will you make sure Positive Impact is enduring?
We will actively create value for actors so they continue to be economically viable after the project’s completion. All partners on this project are committed to developing scalable, sustainable models in addition to the Nigerian government that actively supports the local rice sector through policies and regulations.