Saturday 2 August 2014

FG, Dangote sign $1bn MoU on rice production

THE Federal Ministry of Agriculture and Rural Development and Dangote
Group have signed a Memorandum of Understanding, MoU, of $1 billion
investment on rice production.

Minister of Agriculture and Rural Development, Dr. Akinwumi Adesina,
described the MoU as landmark and historical in the country's rice
production, as Nigeria will soon become a net exporter of rice.

Adesina who lauded the huge investment proposed by the Chairman,
Dangote Group, Alhaji Aliko Dangote, said by 2017 and 2018 Nigeria
will be self-sufficient in rice production and become a net exporter
of the commodity.

Adesina said: "Today is a great day for Nigeria's agriculture and a
day to reaffirm the success of Mr President's drive to transform
agriculture in this country from being a net importer of food to not
just being self-sufficient but to become a net exporter of food.

"The investment is landmark and historical, which will change
everything and the Agricultural Transfor-mation Agenda is working for
us and Mr. President. What Dangote has brought here is a climax of
what we are doing here.

"What the $1 billion investment will do is very transformative. This
investment will cover 150, 000 hectares accumulated across five
states; Edo, Kebbi, Niger, Jigawa and Kwara. The Dangote Group and the
Ministry of Agriculture and Rural Development are mindful of the
importance of smallholder farmers. It will include the communities in
creating wealth in all these areas.

"This single investment by Alhaji Dangote will allow us have
additional 1.4 million metric tonnes of rice produced annually and if
that is translated to what is milled that means we will be producing
in 2017 and 2018 from his own investment, a total of 960, 000 metric
tonnes of milled rice, and that will be 46 per cent of all the total
amount of rice that we are currently importing today. Certainly in
2017, 2018 Nigeria will become a net exporter of rice."

The Minister who commended Dangote, described him as a Nigerian who
believes in his own country and a proud Nigerian. He also described
him as "once largest importer in Nigeria but today the largest
exporter of cement." He outlined areas in the MoU his ministry will
implement by providing infrastructure in areas of investment declared
Staple Crop Processing Zones, SCPZs, alongside with Ministries of
Water, Works and Power, and also the new varieties of rice and
facilitating funds from the Central Bank of Nigeria.

"What the Ministry is going to do in this endeavour, first and
foremost, is to work with them in all the areas they are investing and
these areas will be designated as Staple Crop Processing Zones, SCPZs,
which means my ministry, Ministries of Power, Water, and Works have
been directed by Mr. President to upgrade infrastructure in all these
areas.

"Secondly, we are going to help them with technical support. In
Nigeria we have introduced new varieties of rice called Faro 44, Faro
52, and over 6 million farmers grow them. Those varieties will be the
ones Dangote Group will be growing beat any rice variety in the global
market today.

"We will be supporting them in research and development, and this
changes the whole game in rice in Africa with this single investment
is a turning point in rice production in Africa. We will support the
endeavour with new rice varieties, agronomy practices, mechanisation
services that will support our farmers.

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