Senate Targets $2bn Rice Imports with New Agro Bills

Senate Targets $2bn Rice Imports with New Agro Bills

Juliet Ezeh

The Nigerian Senate has moved to cut the country’s multi-billion dollar food import bill, advancing a set of agricultural reform bills aimed at boosting local production and strengthening food security.

At plenary on Tuesday, lawmakers received and adopted committee reports on three major bills designed to transform Nigeria’s agricultural value chain, with a particular focus on reducing the nation’s heavy dependence on imported rice and wheat.

The legislation includes the National Food Reserve Agency Bill, the Mandatory Cassava Inclusion in Flour Production Bill, and the National Rice Council Board Bill each targeting a different segment of the food system, from production and processing to storage and price stabilization.

Chairman of the Senate Committee on Agricultural Production Services and Rural Development, Senator Saliu Mustapha, who presented the reports, described the bills as a strategic response to Nigeria’s rising food import costs and growing concerns over food insecurity.

He said the proposed laws are aligned with President Bola Ahmed Tinubu’s economic agenda, particularly in promoting self-sufficiency, job creation, and sustainable agricultural development.

“These bills are not just legislative proposals; they are critical interventions aimed at transforming our agricultural sector and ensuring that Nigeria can feed itself,” Mustapha said.

A key highlight of the proposed reforms is the plan to tackle Nigeria’s rice import bill, which is estimated at about $2 billion annually. Lawmakers say the figure represents a significant drain on foreign exchange and underscores the urgency of strengthening domestic production.

To address this, the Senate is proposing the establishment of a National Rice Council Board, which will be responsible for coordinating activities across the rice value chain, including farming, processing, and distribution.

According to Mustapha, the council will serve as a central body to harmonize policies, improve productivity, and ensure that local rice production meets national demand.

“The goal is to build a complete agricultural value chain that supports farmers, processors, and distributors while reducing our reliance on imports,” he said.

In addition to rice sector reforms, the Senate is also seeking to reduce Nigeria’s dependence on imported wheat through the Mandatory Cassava Inclusion in Flour Production Bill. The bill proposes that flour producers incorporate a minimum of 20 percent cassava into their products.

Lawmakers believe this measure will not only reduce wheat imports but also create a stable market for cassava farmers, encouraging increased production and investment in the sector.

Nigeria is one of the world’s largest producers of cassava, yet the crop remains underutilized in industrial food processing. The proposed legislation aims to change that by integrating cassava more effectively into the country’s food system.

“This is about leveraging what we already have in abundance,” Mustapha noted. “By promoting cassava inclusion, we can support local farmers and reduce pressure on foreign exchange.”

The third bill the National Food Reserve Agency Bill focuses on improving the country’s capacity to store and manage food supplies. It seeks to establish a structured system for grain storage that can help stabilize prices, especially during periods of scarcity.

Food price volatility has been a major concern in Nigeria, with fluctuations often linked to supply disruptions, insecurity, and poor storage infrastructure. Lawmakers say a functional food reserve system will help cushion the impact of such challenges.

Mustapha explained that the proposed agency will be responsible for maintaining strategic reserves, ensuring that food is available during emergencies, and supporting market stability.

“With a strong food reserve system, we can better manage supply shocks and protect both farmers and consumers,” he said.

The Senate’s approval of the bills signals a coordinated effort to address structural weaknesses in Nigeria’s agricultural sector. Lawmakers across party lines expressed support for the measures, describing them as timely and necessary.

Observers say the reforms could have far-reaching implications if effectively implemented, particularly in reducing import dependency, creating jobs, and strengthening rural economies.

Agriculture remains a major source of livelihood for millions of Nigerians, yet the sector has struggled with low productivity, inadequate infrastructure, and limited access to financing.

By targeting key areas such as production, processing, and storage, the Senate’s legislative push aims to unlock the sector’s full potential and position it as a driver of economic growth.

However, experts caution that passing the bills is only the first step. Successful implementation will require strong political will, adequate funding, and effective coordination among relevant agencies.

There are also concerns about compliance, particularly with the cassava inclusion policy, which may require significant adjustments by flour producers.

Despite these challenges, the Senate remains optimistic that the reforms will deliver tangible benefits.

Following their passage in the upper chamber, the bills will now be transmitted to the House of Representatives for concurrence. If approved, they will be sent to the President for assent before becoming law.

For now, the Senate’s action represents a bold attempt to reshape Nigeria’s food system one that prioritizes local production, reduces import dependence, and aims to secure the nation’s food futu