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THlSDAY, Vol 16, No. 5784, Page 37

Wednesday, February 23, 2011

personal finance

Investing in Rice Fanning, Millirig R ice has become a stable food in Nigeria. Every household both rich and poor consumes a great quantity of rice everyday. Of the total projected population figure of 150million, about 70 per cent feed on rice. From publications made by the Federal Office of Statistics and Federal Ministry of Finance, of the total foreign debts, importation figures amount to billions of Naira,

rice importation has the greatest figure of over 60 per cent. The Federal Government of Nigeria must therefore have to

do something about this. It is not advisable to impose a total

ban on importation without first assuming that the country can produce at least 70per cent of what is needed in this country. It is based on the above decision, that" the Government has entered into agreement with world Bank & ADB to increase the production of Rice in the country. As a result substantial amollnt are being worked out by the bodies to commence massive production of rice in the country. Some individuals are to be

encouraged by the

By Uba Godwin

one metric tone of paddy rice yields about 6Okg- 70kg of milled rice, depending on milling efficiency company management practice and the variety of rice purchased. In the process of milling well parboiled rice free from sand, stones, unpleasant odor with less breakages, etc from purchased paddy, whole rice broken rice and bran are obtained. Whole rice are packed and sold for human consumption. Broken rice is

further milled into' 'Thwo Shinkafa" (a flour meal) while bran is very important input for rrianufacturing dietary products fIke rice bran

bread which has been acclaimed good for the decrease of blood cholesterol, rice bran oil and livestock feeds. From rice can also be obtained puffed rice, rice cakes, rice pudding etc. The husks are used for the production of potassium Hydroxide solution or as fuel for milling plants. It can be seen that virtually 'all parts of paddy rice is useful. From market analysis, the market for rice is National.

With the estimated national population growth rate of 2.9 per cent and population figure estimated at over 130million, Nigeria is a large market and demand is so high and local supply, so low that rice importation into the country is a very big business.

- Hoarding, rationing and smuggling and sharp black market practices were the profitability associated with the business. This situation should not be allowed to continue forever. Those importers must channel their huge returns to establishment of such producing firms in Nigeria instead of fastening the growth of some foreign counlTies. The huge demand for rice is further accentuated by increasing and expanding urbanization, endless social parties where rice is the main

safely unless one knows the scope (whether cottage, small, medium or large scale) a proposed investor would like to embark upon, the capacity to produce, the source(s) of the machinery, whether to construct his own building or rent one, the location etc. Therefore to embark upon this 'project, one needs a business plan (feasibility studies), with detailed costing for all the aspects of inputs, and before he can obtain the likely total

menu, Nigerians eating habits

short-cut to distinction that is always IUinOUS.

(preference for foreign rice). The preference for foreign rice should be stopped. The likely cost of total pmject will not actually be stated

estimated cost. To do other-

wise is to take a leap in the dark or take our characteristics In conclusion, rice milling, an agro based business is profitable (35-45% on sales), and sustainable. It has 101;' capill\l

requirement, technical know how is complicated. The machinery and equipment are 100 peer cent locally available. The project has a short pay -back period. It is highly recommended for serious and . aggressive promoters, local and state Governments and private investors particularly those that are thinking good for this country. Projected Cost of Establishment The actual cost of the projects depends on many factors, which include the proposed location, the capacity of the investment and other factors.

This can only be established after the feasibility studies.

·Uba can be reached on emait:

Are you enterprising and have the deSire to relentlessly pursue opportunities, a value creator, a team player, experienced, self starter, result

Government to ensure that

oriented, competent, intelligent, highly motivated and seeking for a career in a highly innovative and IT driven bank? If yes, we will like to have

private sector participated in

you In our team in the folIowll1gfunctlons/posltlons:

the venture.

In Nigeria today, some states produce paddy rice in abundance. Some of these states are Enugu , Ebonyi, Anambra, Abia, !mo, Kwara, Edo, Ogun, Ondo, and some Nothern States such as Sokoto etc. Rice project (farming, milling and packaging) will best be sited in these areas where rice is grown in order

legal/Company Secretariat - HBOI

Legal Officers{reports tG tl)e Group Head, Legal)-HBOla Enterprise Risk Management Office HB02 (a) Credit Adminlstratlon- HBQ;l.a '(b) Operations Risk Managemenl-HB02b (c) Market Risk Management:HB02c (d) Chief Credit Offlcer-HB02d

(c) E·Buslness Operations-HB08e (d) Branch Operations Managers-HB08d (e) Branch Operations Officers-HB08e (f) International Operations Officers-HB08f (g) E-Busiriess -Officers-HB08g (a-g: reports to the Group Head, Operations)

(e) Credit/Risk Management Officers-HB02e (a-e: reports to the Group Head, ERM)

to reduce cost of transporta-

tion of the paddy. To be able to achieve good result in this aspect, quality rice processing plants have to be installed. To achieve this also requires the conlTibution of professionals. The writer will gnide prospective investors in setting up this project from feasibility studies, site planning, procure-

OperatlOos-HB08 (al International Operatlons-HB08a (b) Domestic Operations-HB08b

Strategy and Planning Offlce-HB03 (a)Corporate Strategy-HB03a (b) Research & Buslnesslntelligenc....HBo3b (e) Project Management-HB03c (d) Strategy Officers (a-d: reports to the

Human Capital Development Office-HB09 (0) Manpower Planning & Employee Resourcing-H809a (b)Talent Management & Employee Development-HB09b (c) Performance & Reward Management-HB0ge (d) Employee Welfare & Payroll Admin·HB09d (a-d: reports to the Group Head, Human Capital)

, Group Head, Strategy and Planning) Internal Control, Corporate Audit & InspectlOn-HB04

Corporate ReSDurces-HBOIO (a) Fleet Management-HBOloa (b) Facilities Management-HBOIOb

(a)lnvestlgation-HB04a (b) Inspectlon-HB04b (e) Reeoneillation-HB04c

(c) Corporate logistics-HBOlOc (d) Procurement Management-HOOlOd

(d) IT Audlt-HB04d (e) InvestigatIon Officers-HB04e

(e) Administrative Offleers-HB01Oe (a-e: reports to the Group Heall, Corporate

ment and installation of

(f) Head Office & Branch Audit Officers-HB04f (s) R_econclliatioii '(ifllc~'lI:.,


machines, development of marketing strategies and recruitment of experienced manpower to manage the project for profit. To set up this project, a large space is required to dry paddy rice after harvesting. The components of machines required to set up this project are cleaning facilities, dehuller, boiling tank, polisher, bagger and other

-HB04g (h) Branch Resident Controllers-HB04h (a-h: reports to the

miscellaneous equipment such

as wheel barrows, weighing scales. Also pickup vans and generating sets are essential for smooth running of this project. These machines can be fabricated locally. They can also be imported from Europe and some known Asian companies that specialize in the area. Prospective investors would be given details on these machine produces and specialists.

Rice milling could be done on cottage, small, medium

and large scale bases depending on availability of calital and the raw materials- pTlddy rice.

Output could be from 2mt to 150mt per day. Generally

Group Head, Internal Control/Corporate Audit & Inspection)

Information Technology Ofhce-HBOll (al Data Centrel Infrastructure-HBOlla (b) Core BankingSupport/OevelopmentHBOllb (e) iT Help Desk & Application Support-HBOllc

(a)Financiallnstltution-HBOSa (b) Local Currency Traders-HBOSb (c) Foreign Currency Traders-HBOSe (d) Treasury Products Traders-HBOSd (a--d:reports to the Group Head, Treasury) FinanCial Control Offlce-HB06

(d) Control & Planning-HBOlld (e) IT Support Offlcers-HBOlle (a-e: reports to the Group Head, information Technology)

. Group H€ad, Public Sector (Abu)", l"gos, PorI Harcourt, etc) HB012 (a) Team Members, Public Sector-HBOl2a

(a)Performance Management-HB06a (b) Management Reportlng-HB06b (e) Cost/Fixed Assets-HB06c (d) Regulatory Reportlng-HBOGd (a-d: reports to the Group Head, Financial Control) Cor orate Commullicatton's Office-HB07 (a) Brand Management-HB07a (b) Elrternal (media) Communication-HB07b (c) Internal Communicatlon-HB07e (a-c: reports to the Group Head, Corpo'!lte CommunIcations)

Grou Head, Cor orate Bankin '-HB013 (a) Team Members, Corporate Banking (Transport & logistics, Manufacturing & Distribution Services, Oil and Gas)-HB013a Group Head, Personal & Private Banking-HB014 (a) Personal Banklng-HB014a (b) Private Banking-HBOl4b


Investing in Rice Farming, Millirig