Musa Arab, a leading rice farmer and processor in Gombe State and the Northeast region, explains to CHIMA AZUBUIKE why rice prices have been rising incessantly and discusses several related challenges. He notes that multiple taxations are severely affecting business flow in the state. In the industrial cluster area of Nasarawo, where his machines operate, local and state officials constantly collect various fees from processors. This cumulative burden ultimately harms consumers, as the added costs are passed on, inflating rice prices and sometimes driving buyers away. Arab advises the government to harmonise taxes so that a single payment suffices, rather than facing successive, overlapping demands.
Regarding the specifics of multiple taxations, Arab describes how each loaded truck incurs several charges. For example, a truck may be taxed N10,000 by the state, N5,000 by the local government, and an additional amount by the cluster’s union. Consequently, a 50 kg bag of rice that should sell for N24,000 ends up costing N26,000 after taxes—a rise that deters many buyers. Transportation costs have also surged; shipping a bag to Port Harcourt has jumped from N800 to N2,500 due to high fuel prices, further compounding the financial strain.
Arab contrasts Gombe with other Northeast states, stating that taxes here are far more burdensome. While other states collect a single tax, Gombe’s local and state governments each impose separate levies, creating an especially heavy load for processors. Additional challenges include unreliable power supply. In December, the Jos Electricity Distribution Company (JEDC) attempted to install prepaid meters, which proved unsuitable for industrial machines that consume over N8,000 daily. The prepaid system would deplete the card within minutes, making it impractical for factory operations. After refusing the meters, the cluster’s power was cut until the emir intervened. Eventually, a flat rate of N30,000 per month per shop was agreed upon, later increased to N50,000, payable regardless of usage. The cluster continues to reject prepaid meters as unworkable for small‑scale industry.
Processing costs remain low—about N500 to polish a bag of rice—yet the selling price must rise to N4,000–N5,000 to cover expenses, making it unaffordable for poorer consumers. To address these grievances, the union plans another meeting next week to present its complaints to the government, urging tax harmonisation so that payments are clear and consolidated.
Despite the obstacles, Arab believes rice remains a viable business because it is a staple with constant demand. Overcoming tax and electricity challenges could make the sector highly profitable. He cites the COVID‑19 pandemic as proof of resilience: local rice production and processing helped sustain the market when trans‑border trade halted. However, profit margins are thin; after covering costs, earnings are modest.
Gombe State, he explains, is uniquely positioned to feed both the local market and the nation. The state hosts the only industrial cluster in the Northeast, equipped with machinery, a dedicated 33 kVA power line, and 24‑hour electricity—advantages absent in neighboring states like Taraba and Adamawa, which have more paddy but lack processing facilities. Consequently, rice from Gombe is exported to the South‑South, South‑East, and South‑West regions.
Border closures have benefited local producers by encouraging inward focus, whereas reopening borders could allow cheap imports from Thailand and India, undermining domestic employment and food security. Gombe’s cluster employs over 2,000 small‑scale processors who also produce poultry feed, groundnut oil, and other products, contributing to reduced unemployment and the state’s GDP.
Arab advises the government to create an enabling environment: reduce power costs, provide incentives and subsidies, and harmonise tax collection across authorities. Such measures would help the rice industry thrive and sustain economic growth.
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