This paper main objective is to review and assess the policy implications and potential for Nigeria to transform its domestic rice sector and become more competitive with imports in order to ultimately displace them over time. In order to assess the feasibility and policy alternatives for transforming the domestic rice economy in Nigeria, the paper seeks to answer the following questions: Are the policies being considered by the current Agricultural Transformation Agenda (ATA) implemented by the government sufficient? Will they ultimately lead to displacing imports? What are the alternatives given this knowledge? Aside from a comprehensive review of the rice value chain in Nigeria and its potential competitiveness with imports, an economy-wide simulation model of the rice economy is used to answer some of these broad policy questions.