In a significant stride towards achieving national food sufficiency and security, Dangote Rice Limited, a subsidiary of the formidable Dangote Industries Limited (DIL), yesterday inked a crucial purchase and sale agreement with the Niger State Government-owned Niger Foods Security Systems and Logistics Company Limited.
This landmark collaboration, formalised at DIL's Lagos headquarters, is poised to dramatically boost the steady supply of paddy rice, ultimately strengthening Nigeria's staple food chain.
The strategic alliance between Dangote Rice and Niger Foods signals a shared commitment to not only increasing rice production as a fundamental menu item in Nigerian households, but also to guarantee robust food security across the nation.
Under the terms of the newly signed agreement, Niger Foods will embark on large-scale mechanised and commercial farming, focusing on the development and production of various agricultural products, with paddy rice being a primary commodity destined for purchase by Dangote Rice.
Welcoming the Niger State delegation, led by the astute Governor Mohammed Umaru Bago, to his office during the brief but momentous signing ceremony, the President, and Chief Executive of Dangote Industries Limited, Aliko Dangote, articulated the overarching goal of the agreement.
He emphasised its aim to promote self-sufficiency in food production within Nigeria, drawing a parallel to the successes already achieved by the Dangote Group in the cement and oil refining sectors.
Dangote lauded Niger Foods as a leading rice farming and processing entity that has already demonstrated its prowess in paddy production.
“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,” Dangote stated, commending Governor Umaru Bago and his administration for their aligned vision towards a food-secure Nigeria.
He further elaborated that the agreement solidifies Niger Foods' role in supplying high-quality paddy rice to Dangote Rice Limited, a partnership he believes will foster sustainable agricultural development and significantly contribute to food sufficiency across the country.
The revered African industrialist highlighted Dangote Rice's extensive investments in rice mills and plantations nationwide, underscoring that these endeavours are designed to generate employment throughout the out-grower schemes and to champion 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,” Dangote asserted, advocating for increased private sector involvement in agricultural growth.
Dangote also revealed that Niger State now joins a growing list of states, including Jigawa, Sokoto, Kebbi, Kano, and Nasarawa, where Dangote Rice is actively constructing mills.
He outlined an ambitious target: by the end of 2026, the Dangote Group plans to off-take an impressive 1 million tons of paddy rice from local farmers.
This substantial commitment, he noted, will profoundly deepen the nation's rice food supply network, offering crucial reassurance and confidence to local farmers that a willing off-taker consistently exists in the marketplace, thereby encouraging continued rice paddy farming.
In his remarks, Governor Bago expressed profound inspiration by the “Midas touch and the humility” of Aliko Dangote, extending his gratitude for the acceptance of this pivotal partnership.
The Governor underscored Niger State's immense comparative advantage, citing its vast arable land and abundant water resources.
He detailed his administration's proactive pursuit of investors in rice production, aiming to elevate agriculture to the sophisticated levels observed in other global climes.
“Lagos State is opening a food hub and needs off-takers; we have signed a memorandum of understanding (MOU) with them,” Governor Bago revealed, highlighting broader strategic collaborations.
“We are transitioning our people from the primitive to the civilised mode of farming. We are partnering with 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,” the governor stated.
Thabo Mabe, the Managing Director of Dangote Rice, who formally signed on behalf of the company, described the ceremony as profoundly significant in the collective endeavour to cultivate massive rice farming and bolster 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,” Mabe affirmed.
Echoing the sentiment of optimism, Sammy Adigun, the Executive Chairman of Niger Foods Security Systems and Logistics, who also spoke on the agreement, hailed it as a critically important and beneficial project poised to unlock over N18 trillion in revenue over time. Adigun elaborated that the ambitious project will involve cultivating thousands of hectares of land and providing direct support to more than 5,000 farmers within the value chain, promising a transformative impact on the agricultural landscape and the livelihoods of countless Nigerians.
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