Rice Gets Lifeline As Dangote, Niger Foods Seal Paddy Supply Deal

In a strategic move to reinforce Nigeria’s food security and enhance rice production, Dangote Rice Limited has signed a landmark agreement with Niger State Government-owned Niger Foods Security Systems and Logistics Company Limited for the steady supply of paddy rice.

The signing ceremony, held at the Lagos headquarters of Dangote Industries Limited (DIL), marks a major milestone in the nation’s agricultural advancement.

President of Dangote Industries Limited, while receiving Governor Mohammed Umaru Bago and his delegation, praised the collaboration, describing it as a shared vision for a food-secure Nigeria. He highlighted Niger Foods’ reputation in paddy production and emphasized the importance of aligning private and public efforts to transform the agricultural landscape.

Under the agreement, Niger Foods will engage in large-scale mechanized farming and supply high-quality paddy rice to Dangote Rice. This collaboration is expected to deepen the rice food supply network, stimulate rural economies, and support thousands of farmers through out-grower schemes.

Dangote revealed that his group is investing heavily in rice mills and plantations across Nigeria, including in Niger, Jigawa, Sokoto, Kebbi, Kano, and Nasarawa States. By 2026, the company targets off-taking one million tons of paddy rice from local farmers, an initiative designed to reassure farmers of a ready market and sustain national self-sufficiency.

Governor Bago described the agreement as a bold step toward maximizing Niger State’s agricultural potential. He noted that with vast arable land and abundant water resources, the state is well-positioned to become Nigeria’s rice production hub. He also disclosed other ongoing partnerships aimed at modernizing farming techniques and improving yield.

The signing ceremony was also attended by Dangote Rice MD, Thabo Mabe, and Executive Chairman of Niger Foods, Sammy Adigun, who projected the deal could unlock over #18 trillion in long-term revenue while empowering over 5,000 farmers in the rice value chain.

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By Folake Sokoya