News

October 11, 2011

FG accuses contractors of stalling domestic production of rice

BY CHRIS OCHAYI & CALEB AYANSINA
ABUJA—MINISTER of Agriculture and Rural Development, Dr. Akinwumi Adesina, Monday, pointed accusing fingers at contractors who won bids under public-private partnership arrangement of the Federal Government to boost domestic rice production in the country of stalling the efforts.

The minister also read the riot act to ministry officials who are part of non-delivery on critical projects, warning that their non-performance would be treated as economic sabotage.

Adesina said at a briefing on the 2011 World Food Day that the contractors had chosen to focus on importing brown rice for polishing rather than producing rice domestically to make easy money at the expense of rice farmers in Nigeria.

The Minister, who threatened to withdraw such contracts,  said further that for the country to be self-sufficient in rice production, the Federal Government will increase the tariffs on imported finished and brown rice, adding that the proceed realised from it will be used to finance local production of rice in Nigeria.

According to him, the measure will save Nigeria N356billion  annually being spent on rice imports, while creating 1.2 million jobs.

His words: “Our goal as a government is to make Nigeria self-sufficient in rice production within four years. There is an urgent reason for this: the variability of rice production (A 1 Super) on the global market increased from an average of 20.1% in 1992-1999 to 51 in 2000-2004.

“Philippines, the largest rice importer in the world, has taken a similar measure to ensure that it is self-sufficient in rice by 2011. In Nigeria, our rice transformation action plan is to close the 2 million metric tons of milled rice currently being imported, by 2015.

“In pursuant of this, government will accelerate the completion of the 17 integrated rice-processing mills, to be financed under the N10 billion rice special facility at the Bank of Industry.

“The completion of these facilities will provide a rice milling capacity of 500,000 metric tons per year, while creating about 17,000 jobs, and supporting 225,000 out-grower rice farmers.

“Unfortunately, only one of these plants has been completed- the ultra-modern Ebony Agro Ltd in Ebonyi State.

“The non-completion of the rest of the mills is costing Nigeria thousands of jobs, undermining our capacity to meet our rice production requirements, and worsening price volatility for rice farmers who cannot find markets for their produce.

“This is a shame, really, just when Nigeria needs to become self-sufficient quickly in rice! Instead, some of the companies who won bids under this public-private partnership arrangement have chosen to focus on importing brown rice for polishing, rather than produce rice domestically. They make easy money, while our rice farmers languish in penury for lack of markets. They work for the rice exporting countries, not Nigeria.

“To feed ourselves and stabilize our food supply system, we must have a strong sense of nationalism and patriotism. I am not the Minister of Agriculture for any of the rice exporting countries, I am the Minister of Agriculture for Nigeria and I will fully defend the Nigerian farmers and economy.

“We will feed ourselves. Under this administration, we will work hard to complete all the 17 integrated rice mills. We will do so to secure our food supply as a nation and reduce the impacts of global instability of prices on our population”.

“Under this rice transformation plan, we plan to reduce the current 500,000 metric tons of parboiled brown rice being imported to zero by 2013.

“We plan to reduce the importation of parboiled milled rice from 1.5 million metric tons to zero by 2015, replaced by domestically produced and high quality milled rice.

“Our food security will further assure our national security. Let me therefore use this occasion to sound a warning: the era of contractors to the ministry not completing their jobs are over. There must be accountability and value for money, as millions of Nigerians need to be fed.

“Ministry officials who are part of non-delivery on critical strategic projects must know that their non-performance will be treated as sabotaging the economy. I have already directed that no more construction projects will be done until the current ones are finished for the benefit of Nigerians. Nigerians do not eat uncompleted projects.

“We will do all necessary to reach our goal of making Nigeria self-sufficient in rice production. Government will raise the tariffs on imported finished rice and imported brown rice, and use higher levy on these products to finance its domestic rice production, for import substitution.

“We are doing business differently now in the ministry of Agriculture and Rural Development. Our focus is sharply on the farmers and their welfare, for only when farmers are producing sufficient food surpluses can the price of food decline for the benefit of consumers. The policies of abandonment of our farmers are being tackled head on.”

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