This executive summary outlines the findings of the pre-feasibility study conducted to evaluate the prospects of establishing a rice milling and packaging operation in Nigeria. This study provides a comprehensive analysis of the market, technical, and financial aspects of the proposed venture.

Market Context: 
Nigeria’s rice consumption is among the highest in Africa, with a growing demand fueled by a population exceeding 200 million people. Despite being one of the largest producers of rice in West Africa, Nigeria remains a significant importer to satisfy local consumption. The gap between production and demand presents a substantial opportunity for local milling and packaging operations

Technical Assessment: 
This study assesses the viability of modern rice milling technology that can improve the quality of milled rice, reduce waste, and increase efficiency. The proposed milling plant is designed to process paddy rice into high-quality milled rice that meets the Nigerian consumer’s preference for well-milled and stone-free rice.

Project Highlights
Proposed rice mill to be located in Middle-belt for proximity to paddy supply
Modern integrated mill with projected output of 200,000 metric tons of milled rice per annum
Facilities for paddy receival, drying, de-stoning, milling, grading, and packaging
Option to install parboiling capabilities for higher value product streams
Supply paddy rice from local outgrowers and open market through aggregation centers
Market milled rice under a new Nigerian brand through modern retail channels

Financial Analysis: 
Initial projections indicate that the rice milling and packaging plant is financially viable, with a strong potential for profitability and return on investment & attractive financial indicators with payback period under 5 years and IRR over 20%. The analysis takes into account the costs of setting up the plant, procuring machinery, and operating expenses against the backdrop of the current market prices for milled rice.

This executive summary outlines the findings of the pre-feasibility study conducted to evaluate the prospects of establishing a rice milling and packaging operation in Nigeria. This study provides a comprehensive analysis of the market, technical, and financial aspects of the proposed venture.

Market Context: 
Nigeria’s rice consumption is among the highest in Africa, with a growing demand fueled by a population exceeding 200 million people. Despite being one of the largest producers of rice in West Africa, Nigeria remains a significant importer to satisfy local consumption. The gap between production and demand presents a substantial opportunity for local milling and packaging operations

Technical Assessment: 
This study assesses the viability of modern rice milling technology that can improve the quality of milled rice, reduce waste, and increase efficiency. The proposed milling plant is designed to process paddy rice into high-quality milled rice that meets the Nigerian consumer’s preference for well-milled and stone-free rice.

Project Highlights
Proposed rice mill to be located in Middle-belt for proximity to paddy supply
Modern integrated mill with projected output of 200,000 metric tons of milled rice per annum
Facilities for paddy receival, drying, de-stoning, milling, grading, and packaging
Option to install parboiling capabilities for higher value product streams
Supply paddy rice from local outgrowers and open market through aggregation centers
Market milled rice under a new Nigerian brand through modern retail channels

Financial Analysis: 
Initial projections indicate that the rice milling and packaging plant is financially viable, with a strong potential for profitability and return on investment & attractive financial indicators with payback period under 5 years and IRR over 20%. The analysis takes into account the costs of setting up the plant, procuring machinery, and operating expenses against the backdrop of the current market prices for milled rice.

Key Issues:
Ensuring consistent supply of paddy at required quantities, quality and pricing,
Selection of optimal paddy varieties and ideal milling processes,
Positioning milled rice products through effective branding and distribution,
Managing working capital requirements for paddy procurement and rice inventory.

This pre-feasibility study concludes that based on the large sizeable market gap and import substitution opportunity, a new large-scale rice milling facility is potentially commercially viable in Nigeria. However, raw material aggregation, quality management, branding and working capital are critical factors requiring further investigation at full feasibility stage.