Governor Akinwumi Ambode, made the disclosure in Birnin Kebbi on Saturday while addressing newsmen at the end of his one day official visit to the state.
He said this was as part of the Memorandum of Understanding (MoU) signed between the state and Kebbi State Government.
The governor, who was accompanied on the visit by Mexican investors, said the mill would be completed within six months.
He said the MoU was to strengthen the drive to end the importation of rice and ensure food security.
Ambode said the collaboration would also enable the two states provide employment for their teeming population and improve revenue generation.
He said the MoU included collaboration on developing livestock, fish, sorghum and groundnut.