Nigeria is expanding its rice processing capacity, but will need to import 3.5 million tonnes

A new rice mill with a production capacity of 400 tons per day has been commissioned in Kano State, Nigeria. Crescent Rice Mill Ltd., a subsidiary of BlackHorse Holding Co. Ltd., has gradually expanded its processing capacity since commercial production began in 2024.

The mill initially operated at a capacity of 80 tons per day. In 2025, two additional production lines increased capacity to 240 tons per day, while the latest expansion brought the facility to its designed capacity of 400 tons per day. BlackHorse plans to eventually increase rice processing capacity to more than 500 tons per day.

Aminchi Bags Ltd., a sack manufacturing facility with a capacity of 240 tons per month, was also launched alongside the rice mill. The facility will create a vertically integrated model by meeting the company’s own rice packaging needs while also supplying external customers. BlackHorse also plans to diversify its agricultural processing operations, including oil production from groundnuts and sorghum.

The expansion of processing capacity comes amid a significant gap between Nigeria’s domestic rice production and consumption. According to FAS USDA, the country is forecast to produce around 5.2 mln tons of milled rice from 8.3 mln tons of rough rice in the 2026/27 marketing year. Domestic consumption is projected at 9 mln tons, leaving the country with an import requirement of around 3.5 mln tons.

Rice demand in Nigeria continues to rise due to population growth and increasing urbanization. The country’s population is estimated at around 242 million, with annual growth of about 3.2%. According to USDA, consumers, particularly in urban areas, are increasingly choosing rice over other staple foods due to its convenience, ease of preparation and affordability.

Tags: rice, Nigeria