Perhaps you are used to hearing only about fuel subsidy.

Well, rice subsidy is also in the offing as the federal government has disclosed its plan to disburse 60 billion naira to subsidise rice production.

This plan was disclosed by the man in charge of the Agric Ministry, Audu Ogbeh after a meeting of the national council on food security.

President Muhammadu Buhari presided over the meeting in Abuja on Friday.

“There is a subsidy programme coming up. Government has approved 60 billion naira to support the rice industry to bring down prices. But we are going to handle it differently,” he said.

“We don’t want to get into petroleum subsidy problem. So, a committee is looking at it with the ministry of finance.

Also Read: Nigeria, China To Remain Largest Rice Importers In 2019

“We think that it is better for us to loan money to the millers, farmers and distributors at a very low interest rate, so that the capital doesn’t disappear, so they have cheaper credit to do their business that should impact on the price of rice in the market.

“When we are ready, we will let you know,” Ogbeh told newsmen after the meeting.

Ogbeh also said that the Bureau of Public Enterprises (BPE) had concluded plans to restructure the Bank of Agriculture, to make it possible for investors and farmers to buy shares.

“It will eventually become the farmers’ bank. And we hope that in the process this will bring down interest rates reasonably maybe to 5% or a little higher, so that agriculture will become attractive and people can raise capital to invest,” he said.

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