By Francis Akinnodi

The rising price of rice, a staple food for many Nigerian households, has left many with questions about the Anchor Borrowers’ Programme (ABP) that led to the unveiling of rice pyramids during the administration of President Muhammadu Buhari.

The Hope findings showed that the price of locally produced rice has doubled to at least N60,000 per 50kg bag from an average price of about N30,000 in 2022.

During the unveiling of 13 rice pyramids made up of 1.2 million bags, Buhari had assured that the rice revolution being championed by his administration under the ABP of the Central Bank of Nigeria (CBN) would deliver food sufficiency across the country.

A rice farmer, Abraham Ogebe, said the government needs to invest more in rice farms rather than rice mills in order to tackle the challenge of availability and affordability.

He attributed the increase in price of rice to scarcity of rice paddy, which he said was a major challenge to rice production in Nigeria, followed by high cost of transportation and diesel prices.

In 2015, Buhari’s administration identified and launched the ABP as an essential policy instrument for achieving economic diversification through agriculture.

The ABP was designed to encourage investments in agriculture and empower smallholder farmers as drivers of transformation in the agricultural sector and as critical enablers of economic growth.

Speaking to an expert, Tawio Owoeye blamed the high cost of rice on the exchange rate and the impact of fuel subsidy removal.

He said: “We all know that the rice pyramid was a jamboree and would not be able to achieve as much as the government said it would, especially reducing the cost of rice, because it was not properly administered. Many of the beneficiaries of that programme are not farmers, and that is the reason it has not been fully recovered.

“However, we must recognise that the high cost of petrol due to the removal of fuel subsidy and the forex has impacted the prices of commodities in the market. For example, prices of fertiliser, seedlings, labour and other factors of production are on the high side.”

Owoeye highlighted the high cost of processing machines and the need for the government to consider import waivers on machines for food production.

He said the cost of transporting agricultural produce from a place to another has greatly increased, impacting the market price.

Meanwhile, Nigeria is projected to become the world’s largest importer of rice in 2024.

Owoeye pointed out that the ABP was implemented by the government to support rice farmers and increase local rice production.

He said: “The Anchor Borrowers Programme aimed to provide smallholder farmers with access to financial support, improved inputs, and technical assistance to boost their productivity. The programme was expected to increase local rice production, decrease reliance on imports, and ultimately lead to a reduction in prices of rice for consumers.

“However, despite the efforts and investments made through the program, the price of rice in Nigeria has remained high. Several factors contribute to this failure. For example, Nigeria faces challenges in terms of infrastructure, including inadequate irrigation systems, poor road networks, and limited storage facilities.

“These problems hinder the efficient production and distribution of rice, which affects its price. There are also issues of insufficient funds and implementation challenges.