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Dangote plans rice mill in Nigeria to tap growing demand

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Staff Writer | February 14, 2017
Dangote Group
Food production   Rice demand in Nigeria hit 6.3 million metric tonnes

Dangote Group plans to launch a rice mill with a farm scheme in Nigeria to tap growing demand for paddy in Africa's biggest economy.

Rice demand in Nigeria hit 6.3 million metric tonnes (MT) in 2015, with 2.3 million metric tonnes produced at home, leaving the country reliant on imports, according to the agriculture ministry.

Dangote Group subsidiary Dangote Rice Ltd will launch a pilot project starting with 500 hectares of farmland by Gonroyo Dam, Nigeria's second-largest dam, located in the northern state of Sokoto.

The multi-million-dollar project will be expanded to cover a land area of 25,000 hectares across three sites in northern Nigeria by the end of the year, the firm said.

"By year-end 2017, Dangote Rice plans to produce 225,000 MT of parboiled, milled white rice. This will allow us to satisfy 4 percent of the total market demand within one year," the company said in a statement.

"Our model can then be successfully scaled to produce 1,000,000 MT of milled rice in order to satisfy 16 percent of the domestic market demand for rice over the next five years."


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