Description

Rice bran oil, a lesser-known byproduct of rice processing, is steadily gaining global attention due to its nutritional properties and versatile industrial applications. Extracted from the outer layer of rice grains—the bran—this oil is rich in antioxidants, vitamin E, unsaturated fats, and a unique compound called oryzanol, which is associated with lowering cholesterol and enhancing cardiovascular health.

Unlike some traditional oils, rice bran oil has a high smoke point and neutral flavor, making it ideal for a variety of culinary uses from deep frying to salad dressing. Beyond the kitchen, rice bran oil is used in cosmetics, pharmaceuticals, and even in the industrial sector as a potential biodiesel source.

There are different types of rice bran oil, mainly differentiated by their processing methods. Refined rice bran oil, which undergoes processes like bleaching and deodorization, is commonly used in cooking due to its clarity and shelf stability.

On the other hand, unrefined or cold-pressed rice bran oil retains more of its natural nutrients and flavor, making it popular in niche health food and cosmetic markets. Organic rice bran oil, produced from rice cultivated without synthetic inputs, also attracts premium pricing in international markets.

With the global health food and wellness industries growing rapidly, demand for rice bran oil is expected to follow suit.

The global market for rice bran oil reflects this trend. As of 2024, the market is valued at approximately USD 7.5 billion, and it is projected to grow at a compound annual growth rate (CAGR) of nine point three percent (9.3%), reaching an estimated USD 18.3 billion by 2034. This surge is driven by increasing consumer awareness of healthy dietary fats, expanding cosmetic and pharmaceutical applications, and rising demand for plant-based oils.

In 2024, the Asia-Pacific region dominated the market, accounting for over forty-eight point two percent (48.2%) of the global share and generating about USD 3.6 billion in revenue. Countries like India, China, and Japan are leading both in production and consumption, given their longstanding rice cultivation traditions and more developed oil extraction industries.

Nigeria, with its substantial rice-growing capacity, is uniquely positioned to tap into this booming market. However, to appreciate the full potential of rice bran oil production in Nigeria, it is important to understand the historical context of rice farming in the country.

Rice cultivation in Nigeria dates back centuries, originally centered on indigenous varieties like Oryza glaberrima, commonly grown in the Niger Delta and other wetland regions.

The introduction of Asian rice species, particularly Oryza sativa, in the 19th century marked a turning point, offering higher yields and broader adaptability. Over time, O. sativa became the dominant rice variety grown in Nigeria. Post-independence, rice became a strategic crop, with successive Nigerian governments investing in its production to enhance food security and reduce import dependency.

By the early 2000s, rice production began accelerating, driven by targeted interventions such as the Presidential Initiative on Rice and, more recently, the Anchor Borrowers’ Programme initiated by the Central Bank of Nigeria in 2015.

These programs encouraged both smallholder and large-scale farmers to increase production, often supported by subsidies, credit access, and improved seed varieties. In 2024, Nigeria’s production of milled rice was estimated at around five million, two hundred thousand (5,200,000) metric tons, while paddy rice—the raw harvested form—stood at approximately eight million, nine hundred thousand (8,900,000) metric tons. With this level of output, Nigeria ranks among the top rice producers in Africa.

Despite this vast paddy output, the utilization of rice bran, which constitutes about eight to ten points (8-10%) of paddy weight, remains underexploited. If Nigeria could efficiently harness even a portion of its rice bran byproduct, the country could become a significant producer of rice bran oil, both for domestic use and export.

Unfortunately, rice bran oil production in Nigeria is still in its infancy. Only a few companies, such as Rice Field Agri Industries Limited under the Costus Rice brand, are currently engaged in processing rice bran into oil. Most rice mills produce bran as a waste or low-value byproduct, often sold for animal feed or discarded due to its high perishability. Without stabilization, rice bran goes rancid within hours of milling, making timely processing crucial.

The domestic rice bran oil market in Nigeria remains limited, and comprehensive data on production volumes or export values is scarce. Unlike in Asia where bran is rapidly stabilized and processed, most Nigerian rice mills lack the infrastructure to convert bran into oil. As a result, much of the potential economic value of this byproduct remains untapped. While some rice bran is exported, typically in raw or semi-processed form, Nigeria has yet to make a mark on the global stage as a producer or exporter of refined rice bran oil.

There are also significant export opportunities. Global demand for healthy oils is growing, and if Nigerian producers can meet quality standards, they could access lucrative markets in Europe, North America, and Asia. The use of rice bran oil in the cosmetics and pharmaceutical industries presents another growth frontier.

Products like body lotions, face creams, and dietary supplements are increasingly using natural oils, and rice bran oil—with its antioxidant profile—fits perfectly into that trend. There is also potential for biodiesel production from rice bran oil, which could align with Nigeria’s push for energy diversification and sustainability.