This study focuses on the determination of the impact of Nigeria’s rice import restriction; in particular, with regard to the costs and benefits to industry stakeholders. Specifically, the study describes the structure, policy, and performance of the Nigerian rice industry. A comprehensive analysis of the context, operation modalities and implementation issues of rice import prohibition policy, and a comprehensive quantification of the total economic benefits and costs of protection were undertaken. Also, the impact of rice import restrictions on the Nigerian food processing industry’s output and employment was determined and analyzed. Finally, the study concerns itself with an evaluation of the external effects of protection, the costs and benefits quantification of the value of waivers as well as issues relating to tariffication as an alternative measure to import prohibitions in the rice industry.