About 300,000 metric tonnes of maize are soon to be released into the Nigerian market from strategic anchors under the Anchor Borrowers’ Programme of the Central Bank of Nigeria, which watchers believe will reduce the current price of maize from N155,000 per metric tonne.
The anticipated release follows moves made by the CBN, working with the Nigeria Customs Service, in the last quarter of 2020, to facilitate import waivers to four agro-processing companies to import 262,000 tonnes of maize to bridge the shortfall in production and augment local production.
With the release of 300,000 metric tonnes in February 2021, it is expected that the prices of maize in the Nigerian market will drop significantly, thereby increasing demand for the crop and ultimately enhancing the gains of maize farmers.
Prior to the CBN-NCS collaboration, President Muhammadu Buhari had approved the release of 30,000 tonnes of maize from the National Strategic Grain Reserve to support the Poultry Association of Nigeria at a subsidised rate.
In a chat with newsmen in Abuja, the National President of the Maize Association of Nigeria, Alhaji Bello Abubakar, attributed the current shortfall in the quantity of maize available in the market to include insecurity around the major maize producing belt of Niger, Kaduna, Katsina, Zamfara and Kano States.
Bello also identified the activities of hoarders and middlemen who engage in hoarding of the grain.
Also speaking the same vein, a prime anchor under the maize production, Dr. Edwin Uche, noted that banditry, drought in some parts of the country in 2020 and activities of middlemen are responsible for the current high price.
Uche however opined that the planned dry season farming, which is first of its kind in the country, timely distribution of inputs to farmers and improved security, would go a long way to enhance production and ensure stability in price.
He expressed optimism about the price crashing to N120,000 per metric tonne in the next couple of days.
Another major stakeholder in the maize production, Ayodeji Balogun of AFEX, attributed the hike in price to cash-flow problem of farmers, which has compelled farmers to resort to collecting cash from buyers ahead of production and resort to side-selling, especially across the borders of neighbouring countries due to higher prices.
It will be recalled that the CBN in 2020 had provided credit facility and seed support to maize farmers to enable them increase their yield, particularly due to the challenge posed by the Coronavirus pandemic.
As part of the Bank’s financing framework, the CBN has facilitated the funding of maize farmers and processors through the Anchor Borrowers’ Programme, Commodity Association, Private/Prime Anchors, State Governments, Maize Aggregation Scheme and Commercial Agricultural Credit Scheme.