Maize and rice account for ~50% of grains milled in Nigeria as rice and maize are farmed in most states in the country. On average, an annual ~6 Mn tons of rice and 10 Mn tons of maize were farmed between 2010-19. Nigeria is the largest producer and consumer of rice in Africa. The country produces about 5 million metric tonnes of rice against a demand of 6.8 million metric tonnes per annum. Rice production has been growing steadily at 7% p.a. in the last 10 years and has an average production of 6 Mn tons. Rice production is supported by the rice import ban implemented in 2015.

Nigeria is currently producing about 10.5 million metric tons per annum of maize with a demand of 15 million metric tons, leaving a supply-demand gap of 4.5 million tons per annum, according to data from the Federal Ministry of Agriculture. Maize production has been increasing at a 4% p.a. growth rate According to a report from SE4All, ~50% of domestic rice production and ~65% of maize production are ground locally by small-scale mills in rural communities without access to grid, powered by diesel/petrol. About 89% of the new rural mini-grid connections will be in settlements which have both maize and rice milling activity. Over 120,000 unelectrified settlements, produce either rice and/or maize.

Milling operations is a highly energy intensive process that generally occur within settlements and contributes the most energy input as well as GHG emissions across the value-chain, mainly due to the high fuel consumption of diesel driven maize and rice mills. The demand dynamics for grains producers, has also changed by the growing market for poultry as the poultry industry is the primary consumer of Nigeria’s feed, receiving around 68% of grain production, according to the UN’s Food and Agriculture Organisation. Animal Feed accounts for over 70% of the cost of animal production, thereby making it the most important consideration in a livestock business. Nigerian poultry industry contributes 6.0 to 8.0 per cent to the GDP. As of 2019, it’s net worth was N1.6 trillion or 25 percent of agricultural GDP, according to the Central Bank of Nigeria.

For agro-productive use appliances to scale in low-income rural markets, there needs to be an ecosystem that connects an end user or entrepreneur with the tools, energy, and financing necessary to realize that business case that will grow the customer’s wallet while also increasing revenue to the mini-grid.