Taraba Gets $79 Million Rice Processing Funding as Nigeria from ECOWAS

News in Brief

• -The ECOWAS Bank has approved $79.2 million for a modern rice processing complex and irrigated rice production in Taraba.
• -This initiative supports Nigeria’s food security by increasing rice production and efficiency.

Taraba State is set for a major agricultural transformation with the approval of a $79.2 million investment to establish a modern rice processing complex and a 10,000-hectare irrigated rice production unit in the state. 

The funding is part of the projects Nigeria will execute with the newly secured $268.6 million support package from the ECOWAS Bank for Investment and Development (EBID).

According to the statement from the bank, this is one of the projects approved for Nigeria to flow into Taraba State through three strategic initiatives.

The state will get a modern rice processing complex and a 10,000-hectare irrigated rice production unit. This strategic investment would elevate production capacity and processing efficiency to strengthen food self-sufficiency, invigorate the agricultural sector, and underpin the State’s broader economic advancement.

There is also a Taraba State industrial park project that is expected to swallow $91.232 million. This initiative could accelerate local industrialisation and economic diversification through the establishment of a modern, integrated industrial ecosystem.

Another 50 MW Solar Photovoltaic Power Plant in Taraba State could cost $98.18 million. It will augment the supply of reliable, clean electricity to spur inclusive economic development, alleviate energy poverty, and improve environmental sustainability.

Nigeria has the largest share of the bank’s commitments, representing 87 per cent of EBID’s latest approvals, according to announcements, underlining the country's central role in the financial institution's development strategy. 

Impact on Nigeria’s food production

Rice is a staple food for millions of Nigerians, with consumption often outpacing domestic production, and Taraba is one of the core rice production hubs in Nigeria. 

However, drought and high cost of production, especially during the dry farming season, have led a lot of farmers to lose their produce and income, further threatening the continuous rice farming in the state.

This project will ease the expansion of rice farming into the dry season through irrigation, increasing cropping cycles and stabilising supply throughout the year.

 It will especially empower smallholder farmers through access to irrigated land and processing facilities, creating rural jobs and stimulating economic growth.

By combining cutting-edge milling facilities with extensive irrigated rice farms, the project will increase output, reduce post-harvest losses, and improve the quality of rice produced in the region. This enhanced production capacity will help reduce Nigeria's dependence on costly rice imports and contribute to stabilising local market prices.

Broader EBID development projects in West Africa

This financing for Nigeria is part of a broader $308.631 million approved by the bank to catalyse strategic investments in clean energy, industrial development and sustainable growth across West Africa.

The Republic of Guinea will also receive a $40 million loan through Vista Guinée, designated for financing small and medium-sized enterprises (SMEs) and industries (SMIs).

These approvals came at the bank's 93rd Ordinary Session convened at its headquarters in Lomé, Togo. President and Chairman of the Board of Directors of the bank, Dr George Agyekum Donkor, said the newly approved financing would advance strategic public and private sector initiatives, aligned with EBID's mandate to promote sustainable development throughout the Economic Community of West African States by strengthening regional integration and fostering economic diversification.