Nigeria to become world’s largest importer of rice next year

Nigeria to become world’s largest importer of rice next year

Nigeria is projected to become the largest importer of rice next year, despite the huge funds the Federal Government has put into local production.

A new report by the Economic Research Service of the US Department of Agriculture (USDA) showed Nigeria’s import of rice would hit 2.1 million metric tons of rice in 2024.

The report noted that global rice trade would be about 52.85 million tons (milled basis) by 2024, with more exports expected from Brazil and South Korea, and more imports from Burkina Faso, Indonesia and Nigeria.

Nairametrics quotes the USDA report as stating, “Global rice trade in the calendar year 2024 is projected at 52.85 million tons (milled basis), up 345,000 tons from the previous forecast but 460,000 tons smaller than the year-earlier revised forecast of 53.3 million tons.

“Export forecasts for 2024 are raised for Brazil and South Korea, while import forecasts are raised for Burkina Faso, Indonesia, and Nigeria, with Indonesia’s import forecast raised 600,000 tons to 2.0 million tons.”

Weaker crops in Nigeria

According to the report, weaker rice production is expected in Nigeria and seven other countries.

The report stated, “Rice production is projected to continue to decline in Japan and South Korea due to diet diversification and declining and aging populations. Weaker crops are also projected in 2023/24 for Costa Rica, Ecuador, Mali, Nigeria, Turkey, and Uzbekistan.”

It added that global rice production in 2023/24 is projected at a record 517.8 million tons (milled basis), which is a decrease of 340,000 tons from last month’s forecast but 4.4 million tons larger than a year earlier.

Out of the projected rice production figure, Nigeria is expected to produce about 5.23 million tons.

Nigeria tops rice importers

Data from the report also showed that Nigeria would likely be the leading importer of rice in 2024.

The country will be followed by Indonesia with an import projection of two million metric tons and Brazil with a projection of 900,000 metric tons.

It noted that the import forecast for Nigeria was raised by 100,000 metric tons from the earlier projection in October.

On the reason for the increase, the report stated, “Import forecast is raised based on stronger-than-expected demand for imported rice due to both high prices for domestic rice and quality concerns.”