Olam Tells Nigerians to Be Ready to Pay More for Rice This December, Give Reasons

Olam Tells Nigerians to Be Ready to Pay More for Rice This December, Give Reasons

  • Rice is expected to become more costly for Nigerians as the year 2022 comes to a conclusion
  • Olam Nigeria Limited, one of Nigeria's largest agricultural companies, issued this warning to Nigerians
  • The company estimates that it recorded a major loss in its crops, which accounts for 25% of Nigeria's rice supply

Olam Nigeria Limited, an agri-business company, has warned Nigerians to prepare to pay more for rice.

Its warning is coming amid massive flooding from River Benue damaged the company’s crops and infrastructure, located in Rukubi Doma LGA of Nasarawa state.

Ade Adefeko, vice-president of Olam Nigeria Limited, speaking on a programme on Arise TV said the incident affected the company’s $20 million investment and about 25 per cent of Nigeria’s rice needs.

Olam price of Nigeria rice
Olam predicting high cost of rice over flood Credit: Adeyinks madod
Source: Twitter

He further described the situation as “very terrible”, adding that climate change is real despite all efforts put in place to prevent the damage, the Cable reports.

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He stated:

"We have been battling this water for the last two to three weeks. But finally, the water pressure from the dam took over and broke the dykes and multiple spots, which we couldn’t control.
"It was the burst from the seams of River Benue and River Niger. Two major rivers in Nigeria very close to Benue, the damage to our farm means means rice shortfall has incresased since we produce about 25% of what Nigerians consume.

Adefeko, added further that such loss and damage will leads to an increase in the price of rice.

He said:

"We will have to find a means to quadruple output; what occurred on October 2 is that 25% of the rice harvest was taken out." Rice prices are expected to rise in December. Of course, this goes without saying given that the whole harvest has been gone.

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"We produce 25 percent of that crop to a considerable degree." Nigeria used 7 million tonnes of rice, while producing 5 million tonnes and importing around 2 million tonnes."
"As a result, the amount of rice we'll need to fill the shortage is increasing right now." So maybe two or three million tonnes, or four million tonnes, that's massive."

'Rice is not preferred meal': APC defends cost of rice in video, Nigerians reply

In another report, Legit.ng recently captured the conversation between All Progressive Congress director of publicity Yusuf Bala Ibrahim, the director of publicity, All Progressive Congress and Rufai Oseni AriseTV presenter.

The argument ensued after Rufai asked for an explanation on the rising cost of living using the popular Jollof index.

In response, Ibrahim argued that Rice is not Nigerians' preferred meal, which has generated responses on social media.

Source: Legit.ng

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