Farmers under the Anchor Borrowers’ Programme (ABP) of the Central Bank of Nigeria (CBN) are set to receive about 300,000 metric tonnes of maize which observers 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 (NCS), 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 (PAN) at a subsidised rate.
In a chat with the news media in Abuja, the National President of the Maize Association of Nigeria (MAAN) 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 parts of Kano states. Bello also identified the activities of hoarders and middlemen who engage in hoarding of the grain.
Also speaking in the same vein, a prime anchor under the maize production, 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. He 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.
The CBN in 2020 provided credit facility and seed support to maize farmers, to enable them increase their yield, particularly due to the challenge posed by the COVID-19 pandemic.
Confirming the release of credit to its members by the CBN, Abubakar disclosed that over 200,000 farmers targeted to produce more than 25 million metric tonnes of maize in the 2020/2021 planting season.
Abubakar also charged middlemen not to take advantage of the supply gap to hike the price of the grains, even as he assured that farmers would maintain reasonable price. He equally urged the Federal Government to put in place mechanism to protect farmers from market-triggered shocks.
