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Abstract

The Nigerian rice sector has made remarkable improvement in the last decade as production has increased significantly thereby reducing the gap between domestic supply and demand. In the last three decades, rice imports make up greater proportion of Nigerian imports as rice forms a structural component of the Nigerian diet. Past government inconsistent policies were not successful in securing good market share for domestic rice producers, hence producers suffered great losses. The recent resurgence of interest by the present administration to intensify domestic rice production has yielded positive results. The objective of this study is to analyze and assess the costs and benefits of intensification of rice production systems in southeastern Nigeria using a policy analysis matrix approach. Multi Stage sampling technique was employed in selecting 75 upland and 75 lowland rice farmers who were interviewed with structured and validated questionnaire. Data were analyzed using Policy Analysis Matrix (PAM). The result shows that upland; lowland and double rice cropping systems in southeastern Nigeria are profitable based on the policy analysis matrix (PAM) model, and rice production under various systems and technologies is socially profitable and financially competitive. While there exist comparative advantage in the various production systems, with lowland and double cropping being highest, substantial tax was imposed on rice imports in Nigeria and government investment in intensifying rice production had a positive impact on the output of local rice production. The study concludes with strategies for the development of rice sub sector in Nigeria.

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