Niger State Government and Dangote Rice Limited Sign N1.8 Trillion Agreement to Ensure Supply and Offtake of Paddy Rice.
By Yahaya Zakka Minna.
The Niger State government, through Niger Foods Security Systems and Logistics Ltd., has signed a ₦1.8 trillion agreement with Dangote Rice Limited to guarantee the production and offtake of high-quality paddy rice.
The agreement was signed at the Lagos office of Alhaji Aliko Dangote, the President of Dangote Group.
Under this agreement, Niger Foods will supply high-quality paddy rice to Dangote Rice Limited, fostering sustainable agricultural development and food security in Nigeria.
Sammy Adigun, Chairman of Niger Foods, stated that Niger State is committed to developing 25,000 hectares of commercial rice farms and providing support to 50,000 local farmers. He also revealed that the partnership will span 10 years and is expected to create 50,000 direct jobs.
Additionally, the agreement will enable the state to utilize water from the Niger and Kaduna Rivers, as well as other water sources, to boost rice production.
Alhaji Aliko Dangote emphasized that the signing of this agreement is the result of extensive discussions aimed at promoting food production and ensuring food self-sufficiency in Nigeria.
He noted that Dangote Group has made significant investments in rice mills and plantations across the country to create job opportunities through an out-growers scheme, thus advancing food self-sufficiency and security. Niger State joins five other states in Nigeria where rice mills are currently under construction.
He urged that more private sector entities should be encouraged to partner with governments to develop commercial agriculture, as the private sector currently contributes 90% to Nigeria’s Gross Domestic Product (GDP).
Alhaji Dangote asserted that the public-private partnership model is essential for both parties to address not only economic challenges but also social and political issues by providing jobs, livelihoods, and creating value chains that will uplift the community.
He acknowledged the efforts of Governor Mohammed Umaru Bago’s administration in agriculture, particularly in large-scale mechanized commercial farming of agricultural products, including paddy rice. He believes it is beneficial to partner with such an administration to realize its agricultural vision.
Governor Mohammed Umaru Bago expressed his enthusiasm about the agreement and reassured that Niger State is ready to feed Nigeria.
He highlighted his administration’s understanding of the state’s comparative advantages, including abundant water and arable land, and its plans to promote agriculture and its entire value chain while creating job opportunities.
