Break-even yield

The paddy yield at which production cost per tonne equals the market price. At ₦1 236 000 a hectare a crop and ₦350 800 a tonne, it is 3.52 t/ha — against a national average of about 2.0.

Debt service cover ratio

EBITDA divided by interest plus scheduled capital repayment. Negative 0.14 times in Year 1 by construction, 1.62 times in Year 3 at the intervention rate and 0.99 times at a commercial rate.

Double cropping

Growing two crops in one calendar year on the same land, made possible by dry-season irrigation. It doubles output from the same land, management and largely the same fixed cost base.

Head rice

Whole milled grains as distinct from brokens. Head rice recovery of 62% is the assumption on which the milling economics rest.

Milling recovery

Milled rice output as a percentage of paddy processed. The most valuable operational metric in the mill: a three-point shortfall costs ₦55 364 374 of Year 3 EBITDA.

Moratorium

A period during which interest is paid but no capital is repaid. Two years here, and the reason the Year 1 and Year 2 positions are survivable.

NAFDAC

The National Agency for Food and Drug Administration and Control. Product registration is required before branded packaged rice can be sold.

NIRSAL

The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending. It provides credit risk guarantees rather than lending directly, reducing the risk premium a commercial lender applies.

Outgrower

A contracted independent farmer supplying paddy to the mill, typically with pre-financed inputs recovered from the delivery. Roughly 200 at maturity, supplying 620 tonnes a year.

Paddy

Unmilled rice as harvested, with the husk still on. Sold raw it earns ₦350 800 a tonne; milled it is worth ₦534 000 net of milling cost.

Parboiling

Soaking, steaming and drying paddy before milling. It improves head rice recovery and nutritional retention, and is the largest energy load in the mill.

Side-selling

An outgrower selling paddy to a third party after receiving pre-financed inputs. The principal risk in every Nigerian outgrower scheme, addressed by prompt payment rather than by contract.