₦airaland Forum

Beautifulday:
Then something is wrong with Nigeria system of production.

The imported rice are bought. At what price that the local counterparts can't compete favourably?

The imported rice are transported from host nation. Initiate logistics cost isn't available in Nigerian rice production.

The imported rice incurs clearing cost which Nigerian rice do not suffer.

The imported rice has more processing value than local rice. Processing cost

The big question.

How is imported rice cheaper than local rice

Local man is confused

Local Rice with low quality was becoming unaffordable for the common mass . The government should accept the fact that our local production cannot sustain 1 third of the population.

nairalanda1:
They can't because their operating costs are higher than the Thais and the Brazilians. If they did that they would be broke in minutes and there would be no rice production in Nigeria in a few years

The fact that mills have to run on diesel generators instead of mains power supply, the high cost of transporting rice and the fact that Nigerian rice producers cannot meet national demand fully all contribute to the high operating costs

Are you sure that they are running on diesel generators since Adelabu Penkelemess minister said that 150 million Nigerians have adequate power supply, confirming Fashola's 2015 claim that he would fix electricity in 6 months once we replace PDP prosperity with APC extreme poverty shege

BarrElChapo:
Tinubu will control the economy and Shettima will be in charge of insecurity 😂

This is the best joke ever. God Bless you Sir

Elusive001:
“Out of more than 150 rice mills nationwide, nearly 90 have shut down operations. The remaining mills are currently operating between 30 and 70 per cent of their installed capacity.”


Where are the rice now is cheap crew? Oya food done land oooo

Nigeria doesn't need a miracle. It needs serious exorcism. The rugged spirit dismantling this country was conjured in Antarctica (very far from here).

150mills and 90 is already down the drain. Sh*******t

Iseddy:
Local Rice with low quality was becoming unaffordable for the common mass . The government should accept the fact that our local production cannot sustain 1 third of the population.

How come local and even imported rice was affordable during the 16 years of widespread prosperity under PDP deregulation and privatisation policies?

Was the spectacular success in local rice production not the basis of former agric minister Akinwunmi Adesina's World Food Prize, and helped him become AfDB president

Now among every one you HV asked a good question. Don't you think with stable electricity and a sustainable means of transporting goods without paying one thousand and one street urchins along the road the price will drop?

erad:
The mills in the countries we are importing from, what do they use? Water?

Beautifulday:
Then something is wrong with Nigeria system of production.

The imported rice are bought. At what price that the local counterparts can't compete favourably?

The imported rice are transported from host nation. Initiate logistics cost isn't available in Nigerian rice production.

The imported rice incurs clearing cost which Nigerian rice do not suffer.

The imported rice has more processing value than local rice. Processing cost

The big question.

How is imported rice cheaper than local rice

Local man is confused

Very simple let me help you.
It is not just rice, many local productions are costlier than imported ones for a simple reason. The cost of production. The cost of production are cheaper in those countries that have steady electricity, good roads, water and other amenities. Electricity being the major factor.

Your country failed to provide basic amenities that will aid agriculture and production. You really need to be a disciple of MNK to understand why they call Nigeria ZOO

anonimi:
Are you sure that they are running on diesel generators since Adelabu Penkelemess minister said that 150 million Nigerians have adequate power supply, confirming Fashola's 2015 claim that he would fix electricity in 6 months once we replace PDP prosperity with APC extreme poverty shege

You PDP, and APC and ADC guys should know that when we pay cost reflective tarrifs, we go see light. 24/7

KINGKONG:
The next sector for importation should be cement..... Locally made cement prices is skyrocketing everyday

How do you expect us to pay for all these imports?

What are we producing locally and exporting to generate the dollars for imported food and cement

Maybe NNPC refinery fuel exports?

Princecalm:
Jul 29, 2015

The Nigerian National Petroleum Corporation has announced that the Port Harcourt and Warri refineries have been successfully re-streamed after a nine-month rehabilitation exercise conducted by its in-house engineers and technicians.

The corporation, in a statement, noted that both plants commenced preliminary production of petroleum products after successful test-runs, adding that while PHRC was ramping up its operation to about 60 per cent of its 210,000 barrels per day capacity, WRPC production was projected to hit 80 per cent of its installed 125,000bpd capacity.

The NNPC said the Port Harcourt refinery was projected to boost the nation’s local refining capacity with a product yield of five million litres of petrol per day, while Warri refinery would contribute 3.5 million litres of petrol.

Providing insight into the rehabilitation exercise, the NNPC noted that it had to adopt the phased rehabilitation strategy after the Original Refinery Builders, who were initially contacted for the project came up with unfavorable terms.

It said, “Though a decision was taken in 2011 to rehabilitate all the refineries using the ORB of each of the refineries, we were impelled to switch strategy after the ORBs declined participation and nominated some partners in their stead who came up with outrageously unfavorable terms.”

The NNPC stated that the nominated partners, as sole-bidders, came up with humongous price offers after two years of thorough and exhaustive scope of work definition and price negotiations.

It added that the proxies were also unwilling to provide post rehabilitation performance guarantees.

The corporation said, “The phased rehabilitation strategy which entailed phased and simultaneous rehabilitation of all the refineries using in-house and locally available resources in line with the spirit and letter of the Nigerian Content Law, also involved the use of Original Equipment Manufacturer representatives to effect major equipment overhaul and rehabilitation.”

The national oil firm said the phased rehabilitation programme, which started in October 2014 after the required funding stream was established, created a 70 per cent reduction in costs which helped largely in mitigating the financing challenges of refinery rehabilitation.

It observed that with the successful re-streaming of the PHRC and WRPC, attention has now moved to the 110,000 barrels per day Kaduna Refining and Petrochemicals Company which was billed to come on stream soon.

http://www.punchng.com/news/pharcourt-warri-refineries-commence-preliminary-operations-nnpc/

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saintopus:
Dec 06, 2024
The PH Refinery ships its first export of petroleum products to Dubai.
The company is expected to load the cargo in the coming days onboard the Wonder Star MR1 ship, signalling the commencement of operations at the plant and the exportation of petroleum products.

The ship will load 15,000 metric tons of the product, which translates to about 13.6 million litres.

Although the volume coming from the NNPC into the global market is still small, the development has the potential to impact the Very Low Sulphur Fuel Oil (VLSFO) benchmarks in the future while changing the market realities for Atlantic Basin exporters into Nigeria and other regions.

The sulfur content of the export by NNPC stands at 0.26 per cent per wt and a 0.918 g/ml density at 15°C, according to Kpler, a data and analysis company.

The cargo was reportedly sold at an $8.50/t discount to the NWE 0.5 per cent benchmark on a Free on Board (FOB) basis.

Kpler reported that the development would help displace imports from traditional suppliers in Africa and Europe, as Nigeria’s falling clean product (CPP) imports are already decreasing, dragging imports into the wider West Africa region lower as well.

https://guardian.ng/energy/nnpc-begins-export-from-ph-refinery-as-dubai-firm-buys-first-cargo/

APC government met bag of rice at less than 10k in 2015

LagosOrigin:
You local rice farmers are bunch of criminals and wicked souls . When buhari gave you people the opportunity to survive by closing borders to support local rice to thrive, you people made life difficult for Nigerians instead by increasing price of local rice to a staggering N120,000 per bag instead of N20,000 atleast thereby causing hunger and anger all around the country.

I commend president bola ahmed tinubu for opening the borders to give way for importation of foreign Rice into the country which has reduced the price to atleast N60,000 a bag. . But the president must do more to take back the price of rice to the N30,000 a bag that the APC government met it .


Cc yarimo
Seunmsg
Freestuffsng

A better Nigeria is all we want. Show workings to achieve that and we will whole heartedly support you.

God bless Nigeria .

nairalanda1:
You PDP, and APC and ADC guys should know that when we pay cost reflective tarrifs, we go see light. 24/7

My dear friend, why are you doubting APC's magical claim of 150 million Nigerians with adequate electricity for the last 11 years?

anonimi:
My dear friend, why are you doubting APC's magical claim of 150 million Nigerians with adequate electricity for the last 11 years?

LOL...this is a lie, that I ever believed APC provided electricity to 150 million nigerians.

You guys, the reason why I find it difficult to discuss with you people sometimes is that you misrepresent my views so that you can campaign for your party.

Like I have said many times on this site, we got to have cost reflective tarrifs in place, then maybe we would see investment, and eventually power supply. But it is going to take time, and it would start with cost reflective tarrifs for all

Or do you think that tinubu has put cost reflective tarrifs for all in place? If you beleive that, no womder you believe I ever said or supported useless APC's claim above.

nairalanda1:
The countries we import rice from, Thailand and Brazil, have something we don't have....year round rain and favourable conditions for growing rice nationwide all the. year round

So they can produce rice in large amounts yearly

In Nigeria,.most rice farming is done in the North which means it requires a lot of irrigation and heavy duty labor as rainfall there is not as much as in the other countries . That means that production cost for rice here is much higher than in Thailand or Brazil where irrigation is not necessary or needed much.

Also,.Nigerian rice producers can't meet up to half of the total rice demand. That creates relative scarcity.

Add transport costs and insecurity and poor road and transport networks as well as lack of large-scale farming of rice, and the reasons for the price being higher become clear

Then let's just import the rice for God's sake, so the consumers should be the ones paying for irrigation and transportation? When we can get a better quality and affordable rice from other countries without having to pay for the irrigation, transportation or other things..

Our farmers are greedy

nairalanda1:
They can't because their operating costs are higher than the Thais and the Brazilians. If they did that they would be broke in minutes and there would be no rice production in Nigeria in a few years

The fact that mills have to run on diesel generators instead of mains power supply, the high cost of transporting rice and the fact that Nigerian rice producers cannot meet national demand fully all contribute to the high operating costs

Let them rest.. They should stop the farming

We will import rice and eat.. They should grow cassava instead

Diamonddris:
Then let's just import the rice for God's sake, so the consumers should be the ones paying for irrigation and transportation? When we can get a better quality and affordable rice from other countries without having to pay for the irrigation, transportation or other things..

Our farmers are greedy

You are essentially arguing that farmers in nigeria should lose money and suffer financially , or failing that, should be driven out of work so that you can have cheap food.

You also are essentially supporting wasting more forex...or sending our forex...to foreigners instead of trying to keep it at home

A better idea would be finding ways to reduce production costs of rice here in nigeria...or just grinning and bearing it....or making sure we have an industrial economy, which would spur investment in increased production of rice here.

trespas:
The government should pls also allow import of cement local manufacturing is choking us while the companies declare hooge profits. Pls treat seriously

See another wahala.
Rice, then cement, then fuel, then everything until we are a 100 percent imports dependent economy with teeming youths roaming around doing bad things and the Naira ever crashing.

And it is not as if there is something else we export that is so valuable to compensate for our over dependence on imports.

It is a vicious cycle. The more you import the poorer you get and the poorer you get as a country the less you can afford your own country's goods and services.

nairalanda1:
The countries we import rice from, Thailand and Brazil, have something we don't have....year round rain and favourable conditions for growing rice nationwide all the. year round

So they can produce rice in large amounts yearly

In Nigeria,.most rice farming is done in the North which means it requires a lot of irrigation and heavy duty labor as rainfall there is not as much as in the other countries . That means that production cost for rice here is much higher than in Thailand or Brazil where irrigation is not necessary or needed much.

Also,.Nigerian rice producers can't meet up to half of the total rice demand. That creates relative scarcity.

Add transport costs and insecurity and poor road and transport networks as well as lack of large-scale farming of rice, and the reasons for the price being higher become clear

Do your research very well. Southern Nigeria has twice rainfall than Thailand.

https://guardian.ng/news/let-people-eat-first-buharis-ex-aide-ahmad-backs-fgs-rice-waiver-amid-criticism/

A former aide to ex-President Muhammadu Buhari, Bashir Ahmad, has defended the Federal Government’s controversial decision to grant import waivers on food items such as rice, saying it is a necessary short-term measure to ease hunger in the face of economic hardship.

Ahmad made the statement on X (formerly Twitter) on Sunday in response to criticism from one Dr. Yakubu Sani Wudil, a renewable energy expert and founder of Arewa Mentorship Forum, who faulted the government’s decision to waive import duties rather than support local farmers with subsidies and equipment.

Dr. Wudil wrote, “The FG wanted to crash the price of rice. Instead of subsidizing fertilizers, gasoline, and providing modern farm equipment for our farmers, they decided to offer import waivers, building other countries’ economies while our local farmers run at a loss.”

He followed up with several questions: “What happens when the imported rice is finished in the market? What happens to our local farmers who lost their businesses? Is this helping the naira?”

In response, Ahmad acknowledged Wudil’s concerns but offered what he called “a side of the story many are not aware of.”

“To be honest, I am with the Federal Government on this one,” he said. “Many of the interventions you rightly highlighted, such as fertilizers and farm equipment, were actually provided by the previous administration under the late President Buhari, particularly through initiatives like the Anchor Borrowers’ Programme. Billions of naira were allocated to farmers… but we all know what happened.”

According to Ahmad, funds were grossly misused by beneficiaries. “Some farmers received loans running into billions, some even up to ₦6 billion, but instead of investing in agriculture, many diverted the funds to other sectors like oil and gas, bureau de change, and other luxury ventures,” he said.


He added that even the farmers who produced food hoarded their harvests to inflate prices, worsening food insecurity.

Ahmad also pointed to Buhari’s decision to close Nigeria’s land borders to food importation as another genuine effort to boost local production.

He said, “After ABP, the government went further by closing the borders to food importation, a move aimed at encouraging local production because the money to farm was allocated adequately. As someone who was directly at the receiving end, I can confidently say that no single policy attracted more criticism for the late President Buhari than the border closure.

“Despite his honest and well-intentioned explanations, the policy was misunderstood and widely attacked—even when the signs of success were evident, rice importation dropped, and many Nigerians were pulled out of extreme poverty.

“The unfortunate truth is that the beneficiaries of the initiatives failed the government and the people. They didn’t help stabilise food prices. Instead, they formed cartels, manipulated supply and created artificial scarcity to make outrageous profits.”

Defending the Tinubu administration’s resort to waivers, Ahmad said: “Yes, food import waivers have consequences, and ideally, they shouldn’t be the go-to option. But given the betrayal of trust by key players in the local value chain, it has become the only immediate relief available to reduce hunger and suffering.”

He stressed that while the long-term solution lies in reviving and closely monitoring agricultural interventions, “for now, the people need to feed, first.”

These guys had 4 to 6 years of govt support [incubation] to consolidate but instead they blew through the money and became extortionist cartels .basically another subsidy scam

get outta here with that emotional blackmail

So the billions of naira given out to rice farming under the previous administration has gone up in smoke. Just terrible. Now who will be responsible for that. You see how we waste our precious resources in this country.

And I bet part of those soft loans or grants or whatever were sourced internationally for which we maybe paying heavy interests on presently. One government proposed, the next government deposed. Who ultimately pays for these missteps, the people. They pay by the gradual erosion of their standards of living by inflation.

Yes, government's inconsistent policies over years and decades is why you as a Nigerian is poorer today than when this democracy started in 1999 and until Nigerians stand up to learn and understand how economies are grown out of poverty and control the governments they elect into office to maintain the right policies to sustain growth, we will continue to stumble from one failing policy to another.

Remember the common denominator is the people. The man that championed the last economy is dead and gone. The present person who is championing this one will not be around in two decades or less. It cannot be up to that person or a small group of people alone to decide the future of this country. We should all get involved in shaping our destiny.

If other Obidients will have one second sense like you just had now without bitterness, Nigeria will move forward

LagosOrigin:
You local rice farmers are bunch of criminals and wicked souls . When buhari gave you people the opportunity to survive by closing borders to support local rice to thrive, you people made life difficult for Nigerians instead by increasing price of local rice to a staggering N120,000 per bag instead of N20,000 atleast thereby causing hunger and anger all around the country.

I commend president bola ahmed tinubu for opening the borders to give way for importation of foreign Rice into the country which has reduced the price to atleast N60,000 a bag. . But the president must do more to take back the price of rice to the N30,000 a bag that the APC government met it .


Cc yarimo
Seunmsg
Freestuffsng

A better Nigeria is all we want. Show workings to achieve that and we will whole heartedly support you.

God bless Nigeria .

nairalanda1:
LOL...this is a lie, that I ever believed APC provided electricity to 150 million nigerians.

You guys, the reason why I find it difficult to discuss with you people sometimes is that you misrepresent my views so that you can campaign for your party.

Like I have said many times on this site, we got to have cost reflective tarrifs in place, then maybe we would see investment, and eventually power supply. But it is going to take time, and it would start with cost reflective tarrifs for all

Or do you think that tinubu has put cost reflective tarrifs for all in place? If you beleive that, no womder you believe I ever said or supported useless APC's claim above.

I was being sarcastic with my question/comment, hence the use of

Cheers boss.

yarimo:
If other Obidients will have one second sense like you just had now without bitterness, Nigeria will move forward

If every Tinubu and APC supporter would have half a second sense, would the destruction of our country since 2015 stop

Beautifulday:
Then something is wrong with Nigeria system of production.

The imported rice are bought. At what price that the local counterparts can't compete favourably?

The imported rice are transported from host nation. Initiate logistics cost isn't available in Nigerian rice production.

The imported rice incurs clearing cost which Nigerian rice do not suffer.

The imported rice has more processing value than local rice. Processing cost

The big question.

How is imported rice cheaper than local rice

Local man is confused

Nigeria local rice production is still low. Most local rice you see are from subsistence farming.

yinchar:
Crazy set of millers.

They leverage on the policy to monopolize and exploit Nigerians by seller a bag at almost N200,000 and here be we buying foreign imported rice now at N50,000 despite cost of importation etc

Some Nigerians are greedy.

Let them close their useless mills

am with you on this 100%.

They are evil set of association. they contributed to plunging the country into food crisis whiole they benefit from it, knowing that rice is the most consumed food in Nigeria.

Some also cashed out from Emefiele's CBN and used the money to go and setup bureau de change. No wonder the rice association claimed they were over `15 million members and promised to make Emefiele president after obtaining form for him.

they havent seen anything yet. this is election campaign year and the incumbent will not want opposition to use food challenge against them. there will be massive importation to drag down price.

i am only a consumer and only interested in lower price. i dont care if people loose their job in the process. All i care for is that my little money should be able to put the food on my table

IsraeliAIRFORCE:
Do your research very well. Southern Nigeria has twice rainfall than Thailand.

Most rice production in nigeria occurs in the North.

GloriousGbola:
https://guardian.ng/news/let-people-eat-first-buharis-ex-aide-ahmad-backs-fgs-rice-waiver-amid-criticism/



These guys had 4 to 6 years of govt support [incubation] to consolidate but instead they blew through the money and became extortionist cartels .basically another subsidy scam

get outta here with that emotional blackmail

Seen the post you responded to. And yes it is very true. But that is what we did say will happen and we were all alive and on this forum then. I remember clearly saying then that giving out CASH was a very bad idea.

Some went as far as saying it was political settlement money. Their suspicions true or not appear vindicated. Others at that time criticized the so called palliative culture and the heightened fraud associated with it that still exists till today.

Solution. The government of the day should have instead set up AGRICULTURAL ENTERPRISES up and down the value chain and put it's money there as seed capital. These enterprises operating on a profit basis will be required to publish their books in preparation for sale to the public within a specific timeframe so that government can recoup it's investment. Not from individuals but from corporate entities.

The value chain of the business of agriculture can start from land preparation. Incorporate a company, invest in providing tractors and other land preparation equipment and farmers can then subscribe for a regulated fee the services of lands preparation. In this arrangement you are creating an enterprise, creating jobs and securing accountability.

You can have other enterprises specializing in irrigation, in seed manufacture and application, in pest control, in harvesting, in processing, in storage, in canal building and farm infrastructure, in on site energy. You can have tens and hundreds of distinct value giving service companies each lowering the cost to each farmer of producing rice, maize, wheat, cassava, palm, fruits, cattle, fish, poultry, etc.

When the industry is settled list these companies on your NSE and they become permanent features in the agric sector and will thrive across governments. That is how to industrialize, without which government's interventions are at beat haphazard and wasteful.

SpecialAdviser:
Very simple let me help you.
It is not just rice, many local productions are costlier than imported ones for a simple reason. The cost of production. The cost of production are cheaper in those countries that have steady electricity, good roads, water and other amenities. Electricity being the major factor.

Your country failed to provide basic amenities that will aid agriculture and production. You really need to be a disciple of MNK to understand why they call Nigeria ZOO

Yes electricity is now very expensive in Nigeria

It is now a luxury in Nigeria

Not affordable at all.

They didn't even consider business people or those in the manufacturing sector. Most of them have switched to independent power generation. Thereby significantly continually reducing the revenue generation capacity of the various electricity distribution companies.

Now all they do is to sack their staffs every market day.

Reference:
Seen the post you responded to. And yes it is very true. But that is what we did say will happen and we were all alive and on this forum then. I remember clearly saying then that giving out CASH was a very bad idea.

Some went as far as saying it was political settlement money. Their suspicions true or not appear vindicated. Others at that time criticized the so called palliative culture and the heightened fraud associated with it that still exists till today.

Solution. The government of the day should have instead set up AGRICULTURAL ENTERPRISES up and down the value chain and put it's money there as seed capital. These enterprises operating on a profit basis will be required to publish their books in preparation for sale to the public within a specific timeframe so that government can recoup it's investment. Not from individuals but from corporate entities.

The value chain of the business of agriculture can start from land preparation. Incorporate a company, invest in providing tractors and other land preparation equipment and farmers can then subscribe for a regulated fee the services of lands preparation. In this arrangement you are creating an enterprise, creating jobs and securing accountability.

You can have other enterprises specializing in irrigation, in seed manufacture and application, in pest control, in harvesting, in processing, in storage, in canal building and farm infrastructure, in on site energy. You can have tens and hundreds of distinct value giving service companies each lowering the cost to each farmer of producing rice, maize, wheat, cassava, palm, fruits, cattle, fish, poultry, etc.

When the industry is settled list these companies on your NSE and they become permanent features in the agric sector and will thrive across governments. That is how to industrialize, without which government's interventions are at beat haphazard and wasteful.

the devil is in the details.
and in the integrity of the regulators

i worked in the downstream oil and gas industry for a major from 2005 to 2019
the rules in the 2000s were clear and inviolable - to import product you must have over 500 stations nationwide, and a tank farm.

then came gej and briefcase oil companies proliferated and the subsidy ballooned to insane levels with people being paid for doing nothing. MOMAN at the time actually wrote an open letter notifying the government of this but nothing was done until it had all spiralled out of control.

to this day almost no one has been prosecuted and citizens regularly call the oil majors who had invested and complied with the requirements, and who were all fked over by the federal govt [owed 12billion or more per major] as the beneficiaries of the subsidy scams

this, unfortunately, is more of the same. we can build a regulatory framework, but it will be run by nigerians who are more focused on their own immediate benefit that nigerias food security.

right now rice farmers who abused the loans also need to be audited and prosecuted if need be. but that will not happen - or at least it will not happen until after the election as that will become a 'northern persecution' circus

Elusive001:
A farmer pays different Islamic terrorists groups levies to avoid being kidnapped. He pays the same islamic terror groups before he is allowed to go to his farm for planting season. He is either kidnapped or levied by the same terrorists when he goes to tend his crops. The fulani islamic terrorists graze their cattle on the same farm. Then at harvest time, he pays the same Islamic terrorists groups to allow his harvest his crops.

If tinubu has tackled these terrorists the way he made mouth during GEJ regime, it wouldn't have been this bad.


The farmer has to pay other services and goods he needs that are already too costly due to Tinubu’s maladministration.

Then, you want him to sell his leftover crop at one-one kobo bah?

You are the wicked one bros.

so it's now justifiable for Nigeria to keep importing cheaper rice as we can't be the ones to pay bandits and terrorists. Let's refund Islamic terrorists by importing rice.

Since every bag of rice we purchase is a support and funding of terrorists.

As long as Nigerians can buy cheap rice and quench their hunger. It was terrible for Nigerians to be buy rice at 120 - 150k, that time was one of the darkest times in our history courtesy of local rice farmers.

So I have no sympathies for them. They should all go out of business.

richiemcgold:
All what Nigerians need is quality rice at affordable prices. If local production cannot guarantee this, it is better we continue to import pls.

You prefer slavery to freedom