Expanding local wheat production to boost food security in Nigeria
December 4, 2023561 views0 comments
Onome Amuge
Nigeria, with its diverse culture and rich agricultural heritage, has the potential to be a leading producer of wheat. From the bustling markets of Lagos to the agricultural hubs of the north, wheat is highly sought after and has become an essential part of the Nigerian economy, linking local farmers and the global wheat trade.
However, despite the country’s vast arable land and relatively high demand for wheat, domestic production remains far below the consumption levels of the growing population. This shortfall is largely attributed to low investment in the wheat sector, limited access to improved seed varieties, and a lack of adequate infrastructure, including roads, storage facilities, and irrigation systems. As a result, Nigeria continues to rely heavily on imported wheat to meet its domestic demand.
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AgFlow data reveals that Canada was the leading supplier of wheat to Nigeria in July 2023, followed by Poland, Russia, and the U.S. During the first seven months of 2023, Nigeria imported a total of 1.9 million tonnes of wheat. In addition to Canada, other significant exporters included Latvia, Lithuania, Poland, and Brazil. Estonia was also a significant exporter, with shipments of 54,400 tonnes during the period under review.
While wheat imports have been essential in meeting the needs of Nigeria’s growing population and changing dietary preferences, it also means relying on international suppliers. This reliance has led to fluctuations in the price and availability of wheat, which has resulted in serious consequences for consumers and businesses in Nigeria.
Experts in the wheat production system recently discussed best practices for expanding wheat production in Nigeria at a webinar, titled “Understanding best practices for wheat expansion: Lessons for the Nigerian Wheat value chain”, highlighting the need for increased investment in domestic wheat production. The experts highlighted various challenges and opportunities for expanding wheat production in Nigeria.
Aliyu Samaila, the head of the value chain development department at Flour Mills of Nigeria, spoke about sustainable strategies for supply chain management that can benefit farmers in terms of productivity and resource utilization. He highlighted the importance of sustainable agricultural practices such as the use of improved seed varieties, the adoption of precision agriculture techniques, and the use of modern equipment. He also emphasised the need to strengthen agricultural value chains by providing farmers with access to credit, technical assistance, and markets.
According to Samaila, wheat production in Nigeria is not new but commercial wheat production is relatively recent. Samaila pointed out that wheat has been cultivated in Nigeria since the trans-Saharan trade era, but large-scale, modern production is a relatively recent development. The shift to commercial wheat production, he explained, was driven by factors such as the increasing demand for wheat-based products, the need to reduce reliance on imports, and the desire to diversify the agricultural sector.
In his words, “If you need wheat in millions of metric tonnes, you certainly don’t find it with farmers getting 800 kg per hectare and that is the issue we are trying to address by getting the genomics right,getting the right heat tolerant,in the dry season through irrigation.
Our major challenge is the heat, and there are some heat tolerant varieties with which we adopted from for now there are about 17 of them, but for us the millers we promote about four.”
Samaila noted that continuous research and development is key to the success of the wheat production system in Nigeria. He added that developing new varieties that are better suited to the local environment and have improved yield potential is essential for the system to be sustainable in the long term. He also highlighted the importance of investing in research to develop more efficient and cost-effective production methods.
In his remarks on the development of the local wheat production in Nigeria, he said, “Thankfully, we are heading there. For now, we are averaging 2.5 metric tonnes per hectare. It is not the best yet, but we are having isolated cases of up to 6 -7 tonnes per hectare which means there is room for improvement.
It is going to be a long journey considering the quantum of the volume we intend to substitute,but the most important thing is we have started the journey and we are on track and will remain on track to make sure it happens.”
Francis Nwalibe,the trade & invest lead at Welcome2Africa International, a trade and investment facilitation company, spoke about the need for innovative and financing models that can help to develop the value chain for wheat production in Nigeria. He also discussed the role of the private sector in this process, emphasising the need for collaboration between the public and private sectors.
“Agriculture is a peculiar sector, it’s not like the brick and mortar sector where for example you put garbage in and garbage out. So typically,wheat is a very peculiar crop and 45 per cent of what we consume comes from it. From your bread to biscuits and the likes, making it a very important staple crop,” he said.
Nwalibe emphasised the importance of segmenting the different actors in the wheat value chain when it comes to financing. He noted that there are four main categories of actors: producers, input suppliers, aggregators, and processors. Each of these categories,he said, has different financing needs, and so it is important to tailor financing solutions to each category.
Nwalibe went on to explain that smallholder farmers are the backbone of the wheat value chain in Nigeria. As such, any financing solution for the sector will need to target them as the primary beneficiaries. He noted that the smallholder farmers are at the beginning of the value chain, and they must be supported in order to ensure a strong and sustainable supply of wheat. He also highlighted the importance of financing processors, who play a critical role in ensuring that the wheat produced by smallholder farmers reaches the end consumer.
Nwalibe pointed out that wheat is a unique crop that requires 100 per cent value addition. Unlike other crops like tomatoes, wheat cannot be consumed in its raw form, and must be processed into flour before it can be sold. This makes wheat a capital-intensive crop, and it is important to have appropriate financing solutions in place to support the operations of wheat farmers and processors. He noted that wheat is a relatively fragmented value chain, with few players involved in each step of the process.
When it comes to financing the wheat value chain, Nwalibe recommended exploring alternatives to conventional financing options such as equity financing or debt financing. He noted that these traditional financing options may not be suitable for the sector, due to the capital-intensive nature of wheat production and processing. Instead, he suggested considering other financing models.
Nwalibe noted that there are four main types of blended finance that can be used to support the wheat value chain. The first is concessionary capital, which is traditional debt or equity financing with lower interest rates or longer repayment periods. The second is guarantee or risk insurance, which involves providing guarantees or insurance to cover potential losses in the event of default. The third is catalytic or patient capital, which is capital that is patient in terms of its return expectations. Finally, there is technical assistance, which involves providing grants for the purpose of capacity building and technical support.
Kellye Eversole, the executive director of the International Wheat Genome Sequencing Consortium (IWGSC), emphasised the importance of considering the diverse varieties of wheat and the varied environmental conditions across Africa, including Nigeria. She explained that the IWGSC is working to tailor its efforts to support the development of wheat varieties that are specifically adapted to the Nigerian environment.
According to Eversole, the IWGSC’s wheat diversity project, which has just been founded, will create a baseline for understanding the genetic diversity of wheat varieties in Nigeria. This will involve sequencing the genomes of Nigerian wheat varieties and comparing them to other varieties on a global graph. She noted further that it will help to determine the extent of genetic diversity within the Nigerian wheat population, and identify the characteristics that are unique to Nigerian wheat varieties.
Eversole pointed out that one of the key benefits of the wheat diversity project is that it will help to build the capacity of local researchers and institutions to use genome sequences and cloning technologies to develop new wheat varieties that are adapted to the specific conditions of Nigeria. She stressed the importance of developing local infrastructure and expertise, rather than relying on the rest of the world to determine which varieties are suitable for the country. She emphasised that this approach is crucial for building a sustainable and resilient wheat production system in Nigeria.
“You can grow wheat in the south. It is something you can do with genomics over time. But you have to bear in mind that quality is a critical component long term and when we think about economic development we have to have varieties that are developing on a constant basis,” she stated.
The expert in sequencing technologies and strategies, noted further that the ability to adapt and evolve is essential for ensuring the future viability of the wheat industry in Nigeria. She highlighted the importance of providing farmers with access to capital, quality seeds, and appropriate technologies, as well as building the capacity of local mills.
Eversole opined that supporting the growth of the local wheat industry is key for long-term economic development in Nigeria. She further noted that in order to improve the productivity of the industry, it is important to focus on the entire value chain, from seed to mill, rather than just focusing on the production side.