Niger govt, Dangote sign N1.8trn pact to guarantee supply, off-take of paddy rice

The Niger State government, through Niger Foods Security Systems and Logistics Ltd., has signed a ₦1.8 trillion guaranteed paddy rice production and offtake agreement with Dangote Rice Limited.

The agreement was signed at the office of the President of Dangote Group, Alhaji Aliko Dangote, in Lagos.

According to the agreement, Niger Foods will supply high-quality paddy rice to Dangote Rice Limited to foster sustainable agricultural development and food sufficiency in Nigeria.

Speaking on the agreement, the Chairman of Niger Foods, Sammy Adigun, said Niger State is required to develop 25,000 hectares of commercial rice farms and also support 50,000 local farmers.

He disclosed that the partnership is for 10 years and will create 50,000 direct jobs, adding that the agreement will enable the state to utilise water from the Rivers Niger and Kaduna, as well as other water sources, to boost rice production in the state.

The President of Dangote Group, Alhaji Aliko Dangote, explained that the signing of the agreement culminated in a series of discussions aimed at promoting food production and ensuring food sufficiency in Nigeria.

He explained that Dangote Group has invested massively in rice mills and plantations across the country to create employment opportunities through the out-growers scheme and promote food self-sufficiency and security, pointing out that Niger State has now joined five other states in Nigeria where they have rice mills under construction.

The President of Dangote Group emphasised that more private sector players should be encouraged to partner with governments in developing commercial agriculture, as the private sector currently accounts for 90% of the Gross Domestic Product (GDP) of Nigeria.

He reiterated that the private-public sector partnership model is the basis for both parties coming together to solve not only an economic challenge but also a social and political one by providing jobs, livelihoods, and creating value chains that would go a long way in uplifting the people.

Alhaji Dangote acknowledged that the administration of Farmer Governor Mohammed Umaru Bago has done well in agriculture, especially its engagement in large-scale mechanised commercial farming of agricultural products, including paddy rice, and that it is fair to partner with it and make its dream a reality.

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He said the success of the partnership would reassure local rice farmers not to abandon paddy rice farming, as there is a guaranteed offtake of any quantity produced.

Niger State Governor, Farmer Mohammed Umaru Bago, expressed delight and reassured that the state is poised to feed Nigeria.

He said his administration understands the comparative advantage of water and arable land that the state has over its counterparts and will leverage that to promote agriculture and its entire value chain, as well as create employment opportunities.

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