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
Nigerian businessman and chief executive of Dangote Industries Limited, Mr Aliko Dangote, has unveiled plans for a new phase of investments and acquisitions as the conglomerate pushes towards its target of generating $100 billion in annual revenue by 2030.
Mr Dangote disclosed this while receiving a delegation of senior executives from global investment banking and financial services firm Goldman Sachs, led by co-chief executive of Goldman Sachs International and Global Co-Head of Investment Banking, Mr Anthony Gutman, during a tour of the Dangote Petroleum Refinery & Petrochemicals and Dangote Fertiliser Limited complex in Lagos.
Speaking after the visit, Mr Dangote said the refinery and associated industrial facilities underscore the transformative impact of long-term investment in Africa, stressing that the group’s ambitions extend beyond its current strategic plan.
“No matter how we try to explain what we have built, you cannot fully appreciate it until you see it. But this is only the beginning. We need to look beyond 2030.
“The next phase of our journey will include new investments and acquisitions as we continue to scale the business,” he said.
He added that detailed internal modelling had reinforced management’s confidence that the Group’s target of generating $100 billion in annual revenue by 2030 was achievable.
According to him, the projections were based on conservative assumptions and had strengthened the company’s conviction to pursue an even more ambitious long-term growth strategy.
Mr Dangote also revealed that the strong participation of employees in the refinery’s recent private placement reflected growing internal confidence in the company’s long-term strategy and future prospects.
The Goldman Sachs delegation, after an extensive tour of the 700,000 barrels-per-day refinery, described the project as an extraordinary achievement.
“It is extraordinary what Mr Dangote and the whole organisation have achieved. The ambition, the scale of the project, the quality of the project and the culture of the people is very impressive,” the executives said.
According to a statement issued by Dangote Group on Friday, the delegation was led by Mr Anthony Gutman and included Mr Adib N. Zouein, Co-Head of EMEA Emerging Markets Regional Sales and Head of the Middle East and North Africa region for Global Banking & Markets Public; Mr Ryad Yousuf, Global Head of FICC Sales Strats and Structuring; and Mr Jimi Adesanya, Head of Sub-Saharan Africa Sales (excluding South Africa).
The visitors were received by Dangote; Group Vice President, Oil & Gas, Mr Devakumar Edwin; Managing Director and Chief Executive Officer of Dangote Petroleum Refinery & Petrochemicals, Mr David Bird; Group Executive Director, Oil & Gas, Ms Fatima Aliko Dangote; Chief of Staff to the President/CEO, Ibrahim Dikko; Group Chief Branding and Communication Officer, Mr Anthony Chiejina; Group Chief Economist, Mr Hassan Mahmud; Group Chief Strategy Officer, Mr Aliyu Suleiman; and Head of Administration, Dangote Petroleum Refinery & Petrochemicals, Mr Musa Bala, among other senior executives.
By Adedapo Adesanya
The Senate Public Accounts Committee has heard that Nigeria spent N1.16 trillion on fuel subsidy in 2021, while N1.20 trillion was deducted from federation crude oil sales proceeds during the same period.
The disclosure came from the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Mr Mohammed Bello Shehu, during the committee’s ongoing investigation into the 2021 to 2023 Nigeria Extractive Industries Transparency Initiative (NEITI) audit reports on the oil and gas sector.
According to the commission, crude and petroleum product losses cost N16.2 billion, pipeline repairs accounted for N22.05 billion, while strategic stock holding attracted N6.75 billion.
The revelations come against the backdrop of Nigeria’s long-running fuel subsidy regime, which successive governments maintained to keep the pump price of petrol artificially low despite mounting fiscal pressures.
Over the years, subsidy payments consumed trillions of Naira, significantly reducing revenues available to the three tiers of government and contributing to widening budget deficits.
The issue reached a turning point in May 2023 when President Bola Tinubu announced the removal of fuel subsidy during his inauguration speech, declaring that “fuel subsidy is gone.” The decision followed years of concerns over the rising cost of the programme, allegations of fraud, and repeated recommendations by fiscal authorities and international financial institutions that the subsidy had become unsustainable.
The removal triggered a sharp increase in the pump price of Premium Motor Spirit (petrol), leading to higher transportation and living costs across the country. In response, the federal government introduced a series of palliative measures, including cash transfers, support for mass transit, and wage-related interventions, while arguing that savings from the subsidy would be redirected to infrastructure, education, healthcare, and other critical sectors of the economy.
The commission also argued that the current method of calculating the 13 per cent derivation fund undermines the constitutional intention of the policy.
Meanwhile, the committee stood down the Niger Delta Development Commission’s presentation until next Wednesday to allow lawmakers review its submission.
The committee also expressed displeasure over the absence of the Auditor-General of the Federation, warning that he must appear before lawmakers next Tuesday or face compulsory appearance through the constitutional powers of the National Assembly.
By Adedapo Adesanya
Businesses in the country expect the Naira to gradually appreciate against the US Dollar between now and January 2027, according to the Central Bank of Nigeria’s (CBN) July 2026 Business Expectations Survey Report released on Thursday.
The report showed that the Business Confidence Index (BCI) remained positive throughout the review period despite perceived macroeconomic challenges. It noted that all sectors expressed optimism about the economy, with the electricity, gas and water sector posting the highest Business Confidence Index of 59.4 points and the strongest expansion prospects for August 2026.
According to the report, “In July 2026, the Business Confidence Index was 5.7 points, reflecting continued optimistic sentiment among formal businesses.”
It attributed the positive sentiment mainly to increased demand (22.3 per cent), economic diversification (21.4 per cent), and improved access to finance (15.0 per cent). However, respondents identified inflation (27.7 per cent), energy-related challenges (23.4 per cent), insecurity (22.4 per cent), and heightened geopolitical uncertainties (16.5 per cent) as the major factors weighing on business confidence.
On the outlook by broad sector, the central bank said confidence remained positive across all sectors in July. The Industry sector recorded a modest improvement, with its index rising to 11.5 points from 10.5 points, while the Services sector increased to 3.6 points from 2.9 points.
By contrast, the Agriculture sector recorded a significant moderation, with its index falling to 3.4 points from 12.2 points.
Despite this, the apex bank said the six-month outlook remained upbeat, with confidence indices across all sectors indicating positive expectations over the review period.
On the macroeconomic outlook by region, the report noted a divergence in sentiment, with businesses in Northern Nigeria expressing stronger confidence than their Southern counterparts in July. Nevertheless, respondents across all regions maintained positive expectations for August.
