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Rice Millers Warn Tariff Cuts Could Shut Local Mills

Agriculture Food Prices Food Security Lagos Nigeria Rice Tariff
Rice Millers Warn Tariff Cuts Could Shut Local Mills

Rice millers have pushed back against the Federal Government's reduction of import duties on rice, warning that the policy could destroy the domestic industry if it is not reversed. Speaking through the Rice Millers Association of Nigeria, the group said the decision is damaging and could force farmers and millers to close shop, according to Vanguard.

The Millers' Case

The National President of the association, Peter Dama, said the move works against the rice industry and that producers have yet to feel any government intervention, telling Vanguard that the sector has seen no real improvement on the ground. He argued that import substitution cannot sustain local production and that a flood of cheaper foreign rice would keep undermining the drive toward self-sufficiency, leaving local millers unable to compete on price.

The Policy They Are Reacting To

The complaint follows the 2026 Fiscal Policy Measures, under which the government lowered the duty on bulk rice to 47.5 per cent from 70 per cent and cut broken rice to 30 per cent, as reported by Legit.ng. The government has framed the cuts as a way to ease the cost of living and bring down food prices, setting up a direct tension between short-term consumer relief and the longer-term health of domestic producers. That tension is exactly what shows up in prices over time.

FoodPrices Nigeria tracks verified rice prices across Lagos markets and will watch whether cheaper imports deliver lastin relief at the stall or pressure that thins out local supply.

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