FG extends N40,000 rice subsidy program to other states

This was revealed on Monday in a statement by the director of the Federal Ministry of Agriculture and Food Security.

Earlier in September, Agriculture and Food Security Minister Abubakar Kyari announced the introduction of a subsidized rice price of N40,000 per 50kg bag in Abuja, emphasizing that the program is part of a larger effort to ensure that no Nigerian goes to bed hungry.

The objective of the subsidized rice program is to alleviate the burden on citizens facing skyrocketing market prices. Currently, a 50kg bag of rice sells for approximately N90,000, and prices approach N100,000 in some areas.

The Federal Government through this subsidized initiative, is making available 30,000 metric tonnes of rice, equivalent to around 1,000 trucks, each loaded with 600 bags.

“As I speak now, we are preparing to activate rice sales in Lagos and Kano states very soon. Borno State will also be included,” the agriculture ministry official, who requested anonymity due to a lack of authorization to speak publicly on the issue, stated on Monday.

In response to recent claims that rice sales in the Federal Capital Territory had been halted, the official clarified, “We haven’t stopped; the sales are ongoing, and we are actively working with other states.”

Another ministry official mentioned that civil servants in Abuja, particularly those near the federal ministries, have been benefitting from the subsidized rice sales.

However, the official acknowledged challenges with coordination and public cooperation at the National Agricultural Insurance Corporation (NAIC) center, where the rice is sold.

“We opened the NAIC center to gauge public cooperation, but it has been challenging to manage,” the official explained.

The source further indicated that some individuals attempted to block entry and failed to adhere to sales protocols, complicating the process.

“Some people tried to sabotage the effort by buying rice for resale, which undermines the intention of the subsidy,” the official added.

Despite these challenges, the official expressed optimism about the program’s potential impact, saying, “We are committed to ensuring that low-income earners, the direct beneficiaries, can access this essential resource.

“The government aims for a smooth rollout in the specified states, and sales could begin at any moment.”

The expansion is part of the government’s ongoing strategy to address food scarcity and support vulnerable populations across the country, ensuring essential staples are accessible and affordable for all Nigerians.

In the face of rising hunger as food prices soar—compounded by the naira’s depreciation affecting citizens’ purchasing power—this initiative is particularly timely.

The National Bureau of Statistics reported a food inflation rate of 37.52 percent year-on-year in August 2024, an increase of 8.18 percentage points from 29.34 percent in August 2023.

Additionally, FMDQ Securities Exchange Limited reported on September 27, 2024, that the NAFEM closing rate was N1540.78/$, while some black markets in Abuja were selling it for over N1700/$.

Meanwhile, Finance Minister Wale Edun, speaking at a press conference in Abuja to commemorate the country’s 64th Independence Day, declared an end to heavy food imports, describing this shift as fundamental to the government’s economic recovery plan.

“We should not be importing food,” Edun asserted, stressing that Nigeria’s future lies in self-sufficiency. “It is critical that we do not disrupt domestic food production. We must avoid flooding the market with imports,” he cautioned.