Dangote, Nigerian State Govt To Partner For 1.0 Tons Of Rice Paddy By 2026

CaptionSitting, Sammy Adigun, Executive Chairman, Niger Foods Security Systems and Logistics and Thabo Mabe, Dangote Rice Limited, Signing the agreement, watching with admiration behind them are: from left,

Group Executive Director, Commercial Operations, Fatima Aliko Dangote; Oba Abdulwasiu Omogbolahan Lawal, Abisogun II, Oniru of Iruland, Lagos; Alhaji Ahmed Attahiru Guna, Emir of Kagara in Niger State; the state Governor Mohammed Umar Bago; President/Chief Executive, Dangote Industries Limited, Aliko Dangote, among others, during the Signing Ceremony of Memorandum of Understanding (MoU) between Dangote Rice Limited and Niger Foods Security Systems and Logistics Company Limited in Lagos on Wednesday July 23, 2025.

As part of efforts to enhance Nigeria’s sufficiency in rice production, Dangote Rice Limited, a subsidiary of Dangote Industries Limited, on Wednesday in Lagos signed a purchase and sale agreement with the country’s north central state of Niger on steady supply of Paddy rice.

Dangote Rice and Niger State through its Niger Foods Security Systems and Logistics Company Limited, according to a statement, are collaborating to boost the production of rice, a staple menu in Nigerian homes and guarantee food security.

According to details of the deal, the Dangote Group will be off-taking one million tons of Paddy rice from  local farmers by  the end of 2026,  which will go a long way in deepening the nations Rice Food Supply Network. It will also provide reassurance and confidence to our local farmers not to abandon rice paddy farming and to be confident that a willing off-taker exists in the market place.

Under the agreement signed at the Lagos headquarter of the DIL, Niger Foods will engage in high scale mechanized and commercial farming of paddy rice, which will then be sold to Dangote Rice.

Welcoming the Niger State delegation led by the Governor, Mohammed Umaru Bago to his office during the brief agreement signing ceremony, President/Chief Executive, Dangote Industries Limited, Aliko Dangote said the agreement is aimed at promoting sufficiency in food production in Nigeria, “a feat we have achieved both in the cement and oil refining sectors.”

He described Niger Foods as a leading rice farming and processing company which has engaged in the production of Paddy, with which Dangote Rice shares similar “altruistic vision… of establishing and developing efficient and profitable agricultural business, processing, and supply of diverse farm produce towards contributing to national food sufficiency and security. For this aligned vision towards a food-secure Nigeria, we commend the Niger State Governor His Excellency Umaru Bago and his administration.”

Dangote explained that with the agreement in place, Niger Foods will be supplying high-quality paddy rice to Dangote Rice Limited, while helping to foster sustainable agricultural development and food sufficiency in the country.

He stressed that Dangote Rice has invested massively in rice mills and plantations across the nation, explaining that the   investment is to create employment through the out-grower scheme and promote food self-sufficiency and security.

“We believe that more private sector players should be encouraged to partner the government in developing commercial agriculture. This is vital, considering the private sector currently accounts for roughly 90% of our GDP,” he stated.

Dangote further stated that Niger State has now joined five other states of Jigawa, Sokoto, Kebbi, Kano and Nasarawa where Dangote Rice has mills under construction.

Commenting, Governor Bago said his administration is inspired by the Midas touch and humility of Aliko Dangote and appreciated him for accepting the partnership arrangement.

Niger state, he said, has massive arable land and water resources which confers comparative advantage on the state. He stated that towards harnessing this comparative advantage, his administration has gone looking for investors in rice production to boost agriculture as done in other climes.

The Governor said, “Lagos State is opening a food hub and need off takers, we have signed a memorandum of understanding (MOU) with them. We are transitioning our people from the primitive to civilized mode of farming. We are partnering Turkish investors all in a bid to improve our agricultural yield.  We need to feed ourselves, that is why we are excited at this development.”

Managing Director of Dangote Rice, Thabo Mabe who signed on behalf of the Company described the ceremony as very significant in the task to cultivate massive rice farming to boost food production.

“Today is a milestone. This is a very significant development that will delight rice consumers. This event will bring about self-sufficiency and self-dependence in food production”, he added.

Also speaking on the agreement, Executive Chairman, Niger Foods Security Systems and Logistics Sammy Adigun stated that the agreement was a very important one and a good project at that which will unlock over N18trillion naira in revenue over time.

He explained that the project will entail cultivating thousands of hectares of land and direct support to over 5000 farmers in the value chain.