A deal for the steady supply of high-quality paddy rice has been signed between Dangote Rice Limited and Niger Foods Security Systems and Logistics Company Limited.
This development is expected to boost rice production in Nigeria and made the staple food more affordable to consumers.
At a brief signing ceremony in Lagos on Wednesday, the Niger State government, which owns Niger Foods, commended Dangote Industries Limited for looking inwards to solve the country’s food security issues.
Under the agreement, Niger Foods is to engage in high scale mechanized and commercial farming, as well as the development and production of agricultural products, including paddy rice which will be sold to Dangote Rice.
The Governor of Niger State, Mr Mohammed Umaru Bago, praised the doggedness of Mr Aliko Dangote in investing in the country’s economy, thanking him for accepting the partnership arrangement.
According to him, Niger State has massive arable land and water resources which confer comparative advantage on the state, stating that towards harnessing this comparative advantage, his administration has gone looking for investors in rice production to boost agriculture as done in other climes.
“Lagos State is opening a food hub and need off takers, we have signed a memorandum of understanding (MOU) with them. We are transitioning our people from the primitive to civilized mode of farming. We are partnering Turkish investors all in a bid to improve our agricultural yield. We need to feed ourselves, this is why we are excited at this development,” Mr Bago said.
On his part, Mr Dangote described Niger Foods as a leading rice farming and processing company which has engaged in the production of paddy, noting, “We share the same altruistic vision with Niger Foods, of establishing and developing efficient and profitable agricultural business, processing, and supply of diverse farm produce towards contributing to national food sufficiency and security. For this aligned vision towards a food-secure Nigeria, we commend the Niger State Governor and his administration.”
The businessman said his rice firm has invested massively in rice mills and plantations across the nation, explaining that the investment is to create employment through the out-grower scheme and promote food self-sufficiency and security.
“We believe that more private sector players should be encouraged to partner the government in developing commercial agriculture. This is vital, considering the private sector currently accounts for roughly 90 per cent of our GDP,” he stated.
Mr Dangote further stated that Niger State has now joined five other states, namely Jigawa, Sokoto, Kebbi, Kano and Nasarawa where Dangote Rice has mills under construction.
He disclosed that his organisation would be off-taking 1million tons of paddy rice from local farmers by the end of 2026, noting this will go a long way in deepening the nations Rice Food Supply Network and provide reassurance and confidence to our local farmers not to abandon rice paddy farming and to be confident that a willing off-taker exists in the market place.