Investing in Rice Production, Processing Project
With the dwindling price of oil Nigeria should look inwards to develop Agriculture, manufacturing and other real sector-based projects.
From research, many Nigerians are willing to go into manufacturing and invest in other agricultural value chain projects, but due to lack of funds, they have their plans and objectives dashed along the line.
With the new Central Bank of Nigeria (CBN) loan scheme to assist the start-ups, new ventures and expansion of manufacturing, agricultural value chain related projects and other vital service projects; the sky is the limit for Nigeria investors.
The CBN as part of the efforts to unlock the potential of the real sector to engender output growth, value added productivity and job creation had established a N500 billion real sector support facility.
The facility will be used to support large enterprises for startups and expansion financing needs of N500 million up to a maximum of N10 billion. There is also Anchor Borrowers’ Scheme.
The real sector activities targeted by the facility are manufacturing, agricultural value chain and selected service sub-sectors.
The objectives of the scheme is to improve access to finance by Nigerian SMEs to fasttrack the development of the manufacturing, agricultural value chain and services sub-sectors of the Nigerian economy.
Secondly to increase output, generate employment, diversify the revenue base, increase foreign exchange earnings and provide inputs for the industrial sector on a sustainable basis.
The Minister of Agriculture recently restated the federal government’s plan to make Nigeria self- sufficient in rice production in the next, four years. He pointed out that “Abakiliki rice” is the best rice in the world as the taste and quality is far better than the one from China. Apart from “Abakiliki rice”, “Ofada rice” is also one of the best in the world.
Apart from Abakiliki rice and Ofada rice, in Nigeria today, some states produce paddy rice in abundance.
Some of these states are Enugu, Anambra, Abia, Imo, Kwara, Edo, Ogun, Ondo, Cross River State and some Northern States such as Sokoto etc. Therefore, with serious efforts by both government and private companies and individuals, the policy is achievable.
Rice has become a stable food in Nigeria. Every household both rich and poor consumes a great quantity of rice every day. Of the total projected population figure of 180 million, about 70 per cent feed on rice.
From publications made by the Federal Office of Statistics and Federal Ministry of Finance, of the total foreign debts and importation figures of rice amount to about N1 trillion as the end of 2012. Rice importation has the greatest figure of over 60 per cent of total import figures.
The federal government therefore have to do something about this.
It is not advisable to impose a total ban on importation without first assuming that the country can produce at least 70% of what is needed in this country.
It is one of the good things that can happen to this country because the policy will generate more employment opportunities. The federal government within few months ago funded the establishment of about 13Mills with combined capacity of 240,000 across the country.
The government is willing and capable to assist prospective investors in the area of production and processing of rice.
Some individuals are to be encouraged by the government to ensure that private sector participate in the venture.
Rice milling project will best be sited in these areas where rice is grown in order to reduce cost of transportation of the paddy.
To set up this project, a large space is required to dry paddy rice after harvesting.