Cheap Rice Alert: FG Launches N40,000 Rice in Ogun State

Ogun State Benefits from FG's N40,000 Rice Programme

“Ogun is one of the first set of states in Nigeria to enjoy the benefit and this can be attributed to the governor's..."

Nigeria's worsening inflation crisis has rendered basic food staples unaffordable, with rice prices skyrocketing to N90,000 per 50kg bag, exceeding the average citizen's means.

The Federal Government has taken its subsidized rice sale to Abeokuta, Ogun State capital, as part of efforts to alleviate food hardship in Nigeria. Minister of Agriculture and Food Security, Abubakar Kyari, described this initiative as one of many programs aimed at bringing relief to Nigerians.

Kyari, represented by Toyin Ayo-Ajayi, the ministry's state director, emphasized that multiple federal agencies are overseeing the distribution to guarantee transparency, fairness, and security. This move is particularly significant, given the ongoing food crisis in Nigeria.

Initiative Details

Subsidized Rice Program: 30,000 metric tons of milled rice sold at ₦40,000 per 50kg bag

Eligibility: Nigerians with registered National Identification Number (NIN) 

Objective: Mitigate the impact of the ongoing food crisis and curb racketeering

The government implemented this measures to ensure 50kg bags of rice reach intended beneficiaries. To purchase the rice at N40,000, individuals only need to provide their National Identification Number (NIN) and Automated Teller Machine (ATM) card.

This approach aims to streamline the distribution process and minimize potential leaks. It's similar to India's Public Distribution System (PDS), which distributes essential food items at subsidized rates to vulnerable populations. The PDS has undergone reforms, including computerization, Aadhar-based authentication, and technology integration to track beneficiaries and prevent leakage.

Key Requirements:

National Identification Number (NIN)

Automated Teller Machine (ATM) card

Additional Objective:

Ensure targeted distribution of subsidized rice to authenticated beneficiaries, promoting food security and transparency in the process.

“However, I want to specifically applaud Governor Dapo Abiodun for his commitment to the welfare of the citizens of the state,” the minister said.

“Ogun is one of the first set of states in Nigeria to enjoy the benefit and this can be attributed to the governor's tenacity and visionary leadership.

“Ogun has one of the most organised templates ensuring that this gets to the three Senatorial districts of the state and to all at the grassroots.”

Governor Abiodun praised President Bola Tinubu's initiative, saying it demonstrates his dedication to addressing food inflation and enhancing the well-being of Nigerians. This move is part of President Tinubu's efforts to declare a state of emergency on food security, tackling rising food prices and promoting economic growth. By doing so, the President aims to capitalize on Nigeria's agricultural potential, increasing revenue from exports while maintaining food sufficiency for the local population.

Some key measures include releasing fertilizers and grains to farmers and households, promoting synergy between the Ministry of Agriculture and the Ministry of Water Resources to support year-round farming, and establishing a National Commodity Board to review and assess food prices. These initiatives are expected to have a significant impact on employment and job creation, with agriculture already accounting for 35.21% of employment in Nigeria.

The goal is to generate 5-10 million additional jobs within the agricultural value chain, utilizing available arable land and developing more farmlands. This proactive approach to tackling food inflation and empowering MSMEs in the agricultural sector is a step in the right direction.

“This is especially in the light of the present economic realities facing the nation,” he said.

“Government has shown responsiveness, thoughtfulness.

“This is appreciated and welcomed, particularly following the removal of the petroleum subsidy, as this will go a long way in cushioning the impact of the subsidy removal.”

Soaring inflation has made basic food staples like rice and beans unaffordable for most Nigerians, with a 50kg bag of rice reaching an alarming N90,000 in the open market.