To boost rice production in the country, Dangote Rice Limited, a subsidiary of Dangote Industries Limited (DIL) yesterday in Lagos signed a purchase and sale agreement with Niger State Government owned Niger Foods Security Systems and Logistics Company Limited on steady supply of Paddy rice.
Dangote Rice and Niger Foods are collaborating to boost the production of rice as a staple menu in Nigerian homes and guarantee food security.
Under the agreement signed at the Lagos Headquarter of the DIL, Niger Foods is to engage in high scale mechanized and commercial farming, as well as the development and production of agricultural products, including paddy rice which will be sold to Dangote Rice.
Welcoming the Niger State delegation led by the Governor, Mohammed Umaru Bago to his office during the brief agreement signing ceremony, President/Chief Executive, Dangote Industries Limited, Aliko Dangote said that the agreement was aimed at promoting sufficiency in food production in Nigeria;
“A feat we have achieved both in the cement and oil refining sectors.”
He described Niger Foods as a leading rice farming and processing company which has engaged in the production of Paddy noting:
“We share the same altruistic vision with Niger Foods, of establishing and developing efficient and profitable agricultural business, processing, and supply of diverse farm produce towards contributing to national food sufficiency and security. For this aligned vision towards a food-secure Nigeria, we commend the Niger State Governor His Excellency Umaru Bago and his administration.”
Dangote explained that with the agreement in place, Niger Foods will be supplying high-quality paddy rice to Dangote Rice Limited. This will help to foster sustainable agricultural development and food sufficiency in the country.
The African foremost industrialist stated that Dangote Rice has invested massively in rice mills and plantations across the nation, explaining that the investment is to create employment through the out-grower scheme and promote food self-sufficiency and security.
“We believe that more private sector players should be encouraged to partner with the government in developing commercial agriculture. This is vital, considering the private sector currently accounts for roughly 90% of our GDP,” he stated.
Dangote further stated that Niger State has now joined five other states, namely Jigawa, Sokoto, Kebbi, Kano and Nasarawa where Dangote Rice has mills are under construction.
According to him, the Dangote group will be off-taking 1million tons of Paddy rice from local farmers by the end of 2026, which will go a long way in deepening the nations Rice Food Supply Network and provide reassurance and confidence to our local farmers not to abandon rice paddy farming and to be confident that a willing off-taker exists in the market place.
In his own remarks, Governor Bago said his administration is inspired by the Midas touch and the humility of Aliko Dangote and thanked him for accepting the partnership arrangement.
He said that Niger state has massive arable land and water resources which confers comparative advantage on the state. He stated that towards harnessing this comparative advantage, his administration has gone looking for investors in rice production to boost agriculture as done in other climes.
The Governor said, “Lagos State is opening a food hub and needs off takers, we have signed a memorandum of understanding (MOU) with them. We are transitioning our people from the primitive to civilized mode of farming. We are partnering Turkish investors all in a bid to improve our agricultural yield. We need to feed ourselves, that is why we are excited about this development.”
Managing Director of Dangote Rice, Thabo Mabe who signed on behalf of the Company described the ceremony as very significant in the task to cultivate massive rice farming to boost food production.
“Today is a milestone. This is a very significant development that will delight rice consumers. This event will bring about self-sufficiency and self-dependence in food production”, he added.
Also speaking on the agreement, Executive Chairman, Niger Foods Security Systems and Logistics, Sammy Adigun stated that the agreement was a very important one and a good project at that which will unlock over N18trillion naira in revenue over time.
He explained that the project will entail cultivating thousands of hectares of land and direct support to over 5000 farmers in the value chain.
