CBN Moves To Crash Maize Price
Plans February release of 300,000 metric tons
BY COBHAM NSA, ABUJA – With eyes on crashing the price of maize by over 30 per cent, the Central Bank of Nigeria (CBN) is set release about 300,000 metric tonnes of the commodity crop into the Nigerian market from strategic anchors under the Anchor Borrowers’ Programme (ABP) in February 2021.
Already, market watchers are positive the development will reduce the current price of maize from N155,000 per metric tons to about N120,000 in the days ahead.
The move is expected to considerably drop the prices and increase demand for the crop in the overall interest and improved economic fortunes of maize farmers in the country.
Interestingly, this cheery news is against the backdrop of collaboration between the apex bank and Nigeria Customs Service (NCS) that aimed at facilitating import waivers to four agro-processing companies in the last quarter of year 2020.
According to a statement by CBN, the four firms were scheduled to import 262,000 tonnes of maize with the aim of bridging shortfall in current production as well as boost local production.
President Muhammadu Buhari had, prior to the CBN-NCS partnership, approved that 30,000 tonnes of maize be released from the National Strategic Grain Reserve to support the Poultry Association of Nigeria (PAN) at a subsidized rate.
However, offering insight into the current challenges faced by maize farmers, National President of Maize Association of Nigeria (MAAN) Alhaji Bello Abubakar, blamed insecurity around the major maize producing belt of Niger, Kaduna, Katsina, Zamfara and Kano states for current shortfall of maize available in the market.
Alhaji Bello, who lauded the CBN’s planned intervention, also noted that efforts to make grains available to Nigerians cheaply are been frustrated by self-seeking activities of hoarders and middlemen across the country.
Speaking in the same vein, a prime anchor in maize production, Dr. Edwin Uche, attributed the current high price to banditry; drought in some parts of the country in 2020; and conceited activities of middlemen.
For him, measures at enhancing production and ensuring stability in price must be focused on making success of the planned dry season farming, first of its kind in the country; timely distribution of inputs to farmers; and improved security among others.
Similarly, Mr Ayodeji Balogun of AFEX, a key player in maize production, ascribed the price hike to farmers’ cash-flow problem that compels them to collect cash from buyers ahead of production and resort to side-selling, especially across the borders for higher gains.
Amid the Coronavirus (COVID-19) pandemic challenges, the CBN in 2020 provided credit facility and seed support to maize farmers, to enable them increase and improve their yield.
Also, the apex bank, as part of its financing framework, facilitated the funding of maize farmers and processors through the Anchor Borrowers’ Programme (ABP) Commodity Association, Private/Prime Anchors, State Governments, Maize Aggregation Scheme (), and the Commercial Agricultural Credit Scheme (CACS).
MAAN President, Alhaji Bello Abubakar, while confirming CBN’s release of credit facility to its members, said over 200,000 farmers’ target is to produce more than 25 million metric tonnes of maize during the 2020/2021 planting season.
He explained that CBN credit are distributed to members along the maize value chain nationwide and expressed confidence this would not only boost production but also ultimately ensure availability as well as stability in the commodity price.
Bello said despite security challenges in parts of the country, farmers were committed to meeting the objective of food security, even as he cautioned middlemen against taking advantage of existing supply gap to hike the price of grains.
The MAAN chief, who assured that farmers would maintain reasonable price, however pleaded with the Federal Government to initiate measures to protect farmers against market triggered shocks.
