Economy
Dangote Vows to End Rice Importation in Nigeria
By Dipo Olowookere
Rice is a staple food consumed by many Nigerians, but it is unfortunate that the country relies on importation of the commodity to meet local demands.
However, Africa’s richest man, Mr Aliko Dangote, is determined to ensure rice importation in Nigeria becomes a thing of the past.
This he is doing by aggressively investing in the rice sector and on Wednesday, Mr Dangote laid a foundation stone for the construction of a multi-billion Naira rice processing mill in Hadin, Jigawa State.
This is part of the business mogul’s Rice Outgrower Scheme in Jigawa State and the mill has the capacity to process 16 metric tons of paddy rice per hour when completed.
The plant will also in one year process paddy rice worth N14 billion bought directly from the famers in Jigawa at market rate.
Speaking at the ground breaking ceremony in Hadin, Kaugama local government area, Mr Dangote explained that the commencement of the construction of the integrated rice processing plant was the culmination of series of events which began with the signing of a $1 billion agreement with the federal government for the integrated rice production in Kebbi, Sokoto, Zamfara, Kano, Niger and Jigawa States.
“We have continued to pioneer new approaches to empowering our primary stakeholders and our farmers, through the Dangote outgrowers programme thereby creating thousands of jobs, increasing incomes, poverty reduction in rural communities by providing high quality agro-inputs, technical support and secured market for farmers.
“Also, creating access to finance, mechanization and irrigation services so as to enhance agricultural productivity,” he stated.
Recalling that the Dangote Rice limited started the outgrowers scheme in 2016 with thousands of hectares of land in Hadejia, Jigawa state, creating over 10,000 jobs (direct and indirect) to farmers, the business mogul said with the new ultra-modern mill enough paddy rice will be grown and harvested for processing.
According to him, the mill which will take only months for installation and commissioning is the first in the series of five other mills coming up in Kano, Sokoto, Zamfara, Kebbi and Niger States in the first phase, while in the second phase, other mills will be built in Nasarawa, Kogi, and other states.
“When these planned six mills come fully on stream, we will achieve a capacity of seven hundred thousand metric tons per annum of Parboiled rice, which will make Dangote Rice the largest rice producer in Africa and will make a bold step in making Nigeria self-sufficient in Rice production, stop importation Nduka save the nation foreign exchange,” Mr Dangote said.
The industrialist stated further that towards co-creating value for all stakeholders, the company has engaged about 20,000 out growers who are expected to produce an average of 180,000 tons of paddy rice on about 30,000 hectares of land. “We are focused on engaging in the region of 300,000 farmers in the next 12 months when our rice mills are all functional and we achieve steady state.”
“We will continue to launch massive agricultural projects across the country in rice and dairy farming. Our push for backward integration in providing our own raw materials on a massive scale has led to the planned investment of $4.6 billion over the next three years in sugar, rice and dairy production alone. That will eliminate the country’s reliance on imported materials, and the foreign exchange headaches that come with it,” he said.
In his opening remarks, the Dangote Group Executive Director, Mr Devakumar Edwin, explained that the Dangote Rice team has been involved in scaling up the outgrower operations to at least 5,000 hectares this season and this will very soon increase and grow to over 15,000 hectares cultivated per cycle or season to fully optimise operations.
He said the establishment of a multi-billion Naira state-of-the-art integrated rice processing facility to process at least 260 metric tons of rice paddy per day grown which is produced from thousands of local rice out growers within Jigawa State is a giant step forward and expresses his company’s confidence and faith in local farmers to continuously stand with Dangote to make this project a success.
Located on 25 hectares site in Hadin, Mr Edwin noted that the mill is earmarked to begin operations in the last quarter of 2018. “During the construction phase and when it becomes fully operational, hundreds of employment opportunities will be created, knowledge transference and skills developed among our teeming youthful population thereby boosting local economy.”
According to him, “the Jigawa famers are in for a good times as the 125,000 metric tons of paddy rice that this plant requires for processing will be brought from the farmers of Jigawa for an estimated purchase price of N14 billion per annum. This is a huge benefit for the farmers in Jigawa.
“This mill will be producing high quality parboiled rice that competes with the best in the world this is in-line with our continuous aim to touch the lives of millions who believe in the Dangote brand.”
“Jigawa State is endowed and blessed with vast fertile land, water resources, climate and progressive people, as well as one of the fastest growing agricultural destinations in Nigeria, was identified as an ideal location for us to set up our first facility in Nigeria. This obviously reinforces our commitment to supporting the efforts of the present administration in developing a robust agro-industry in Nigeria.
“We made commitment to Nigerians that we will produce 1 million metric ton of quality parboiled rice. Since then we have embarked on several initiatives towards achieving this objective with support and collaboration from state and federal government agencies, ministries and departments, non-governmental organisations, community based organisations, traditional and financial institutions, etc., we continue to pioneer new approaches to empowering our primary stakeholders and our farmers, through the Dangote outgrower program thereby creating thousands of jobs, increasing incomes, poverty reduction in rural communities by providing high quality agro-inputs, technical support and secured market for farmers.”
On his part, Governor of Jigawa State, Mr Abubakar Badaru, expressed delight at the stage of the Dangote Rice project in the state saying it was in line with the vision of the Invest Jigawa, an organ set up to accelerate investments in the state.
He said Jigawa is one of the States reputed to be on top on ease of doing business in Nigeria saying the Dangote Rice presence in the state is a pointer to the fact. He added that the state is also in the forefront of the diversification efforts of the federal government from oil to non-oil ventures especially agriculture.
The Governor promised that the state will be willing to do whatever it will take to ensure the Dangote rice operate smoothly to the satisfaction of all parties in the state.
By Adedapo Adesanya
Oil was up more than 3 per cent on Tuesday as renewed Iranian attacks on the United Arab Emirates (UAE) heightened concerns about the worsening outlook for global supply.
Brent crude futures appreciated by $3.21 or 3.2 per cent to $103.42 a barrel, while the US West Texas Intermediate (WTI) crude futures gained $2.71 or 2.9 per cent to trade at $96.21 per barrel.
Prices had fallen previously after some vessels sailed through the critical Strait of Hormuz, a vital gateway for about 20 per cent of the world’s oil and liquefied natural gas trade
The Iran war shows no signs of abating as it renewed attacks on the United Arab Emirates (UAE) on Tuesday, causing oil loading at the port of Fujairah to be at least partly halted after the third attack in four days ignited a fire at the export terminal.
Fujairah, located on the Gulf of Oman just outside the Strait of Hormuz, is a critical exit point for oil volumes equivalent to roughly 1 per cent of global demand.
The attacks on oil installations by Iran and the ongoing disruption to shipping through the Strait of Hormuz have traders worried for long-term impairment to supply that could keep prices elevated.
The effective closure of the strait has forced the UAE, which is the third-largest producer in the Organisation of the Petroleum Exporting Countries (OPEC), to reduce its output by more than half.
Several allies of the US rebuffed President Donald Trump’s call on Monday to send warships to escort shipping through the strait.
On Tuesday, French President Emmanuel Macron said France would never take part in operations to unblock the strait, and would only participate in a coalition that could provide freedom of navigation once hostilities ended.
Meanwhile, the Trump administration reiterated its position that they see the Iran conflict lasting weeks, not months.
The head of the International Energy Agency (IEA), Mr Fatih Birol, has suggested member countries could release more oil, in addition to the 400 million barrels they have already agreed to draw from strategic reserves.
By Adedapo Adesanya
A 10 per cent equity stake has been acquired by Odu’a Investment Company Limited in a subsidiary of FCMB Group Plc, FCMB Pensions Limited.
The move is aimed at strengthening its presence in Nigeria’s growing pension industry.
The company disclosed that the transaction was completed after receiving all required regulatory approvals from the National Pension Commission (PenCom) and the Central Bank of Nigeria (CBN), while the Securities and Exchange Commission (SEC) has also been duly notified.
Odu’a Investment said the acquisition represents a strategic investment in a resilient and steadily expanding segment of Nigeria’s financial services sector.
The company added that the deal also reinforces FCMB Pensions’ shareholder base through the entry of a long-term institutional investor.
Chairman of Odu’a Investment Company Limited, Mr Bimbo Ashiru, said the investment aligns with the organisation’s strategy of partnering with strong institutions operating in sectors critical to Nigeria’s long-term economic stability.
“This investment reflects Odu’a’s strategy of partnering with strong institutions operating in sectors that are central to Nigeria’s long-term economic stability and growth,” he said in a statement.
“The pension industry plays a critical role in mobilising long-term savings and strengthening the financial system. FCMB Pensions has built a solid platform serving contributors across Nigeria, and we see a significant opportunity to support its continued growth and impact,” he added.
Also commenting on the transaction, the Managing Director of Odu’a Investment Company Limited, Mr Abdulrahman Yinusa, described the deal as a vote of confidence in FCMB Pensions’ leadership and long-term prospects.
“Our partnership with FCMB Group Plc reflects confidence in FCMB Pensions’ strategy, leadership, and long-term potential. Together, we will work to expand its reach, support its strategic objectives, and deliver sustained value to contributors and other stakeholders,” Mr Yinusa said.
The investment brings together two established institutions with complementary strengths and a shared focus on long-term value creation. According to the company, the partnership positions FCMB Pensions to deepen market penetration and enhance service delivery within Nigeria’s contributory pension scheme.
Odu’a Investment Company Limited is an investment holding company jointly owned by the governments of the six South-West states of Nigeria.
The firm manages a diversified portfolio spanning real estate, financial services, hospitality, agriculture, and industrial investments, with a mandate to generate sustainable economic value and support regional development.
By Aduragbemi Omiyale
The chief executive of the Nigerian Exchange (NGX) Group Plc, Mr Temi Popoola, has said Nigeria’s capital market is undergoing a re-rating as global investors begin to reassess the country’s economic trajectory and investment potential.
“What we are seeing is a gradual re-rating of Nigeria. investors are beginning to look at the data more closely, the returns, the reforms, and the improving macroeconomic direction, and that is changing sentiment,” he said during a live interview on BBC Newsday in London.
He is in the United Kingdom as part of broader investor and stakeholder engagements during President Bola Tinubu’s state visit to Buckingham Palace.
Mr Popoola explained that Nigeria’s equity market has delivered strong returns in recent months, positioning it more competitively among emerging and frontier markets. According to him, this performance is helping to recalibrate long-held risk perceptions and attract renewed interest from international investors.
He added that improvements in Nigeria’s energy landscape, including increased domestic refining capacity and ongoing sector reforms, are helping to reduce the economy’s exposure to external oil price shocks, further strengthening investor confidence.
Mr Popoola emphasised that beyond short-term market movements, consistency in policy implementation will be critical in sustaining this shift in perception. “Global capital responds to clarity and consistency. As those elements become more evident, Nigeria naturally becomes more investable.”
He also highlighted the importance of sustained engagement with global financial centres, noting that platforms such as London play a key role in connecting Nigeria’s capital market to international pools of capital.
According to him, Nigeria’s evolving market structure, combined with ongoing reforms, is strengthening its position as a viable destination for long-term investment. “There is a broader recognition that Nigeria offers significant opportunities. The focus now is ensuring that this recognition translates into sustained capital flows.”
The NGX group chief concluded that Nigeria’s capital market is increasingly being viewed through a more balanced and data-driven lens, reflecting both its resilience and its long-term growth potential.
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