• World
  • Columnist
  • Commodities
  • WORLD BUSINESS & ECONOMY
  • Executive Knowledge Series
  • Finance
  • Manufacturing
  • Markets
  • Risk & Governance
  • Small Business
  • Technology, Media & Innovation
  • Comments
  • Business AM WebTV
  • Login

Businessamlive
  • FRONTPAGE
  • FINANCE
    • AllAsset ManagementAuditBankingBondBudgetCapital MarketsC&I LeasingCurrencyDealDebt marketForexFund RaisingFundingGovernmentHedge FundsInsuranceInvestmentInvestorInvestor ServicesMergers & AcquistionsMoney marketTreasury BillsMortgagePensionsPersonal financePonziQuantitative EasingshareTaxationTSAWealth Management
      Finance

      CBN says cryptocurrency ban in interest of Nigerians

      February 25, 2021

      Companies-in-Action

      Zenith Bank in strong operational performance as profit rises 10.4% to N230.56bn in FY20

      February 25, 2021

      Companies

      United Capital posts strong numbers as earnings rise 50% to N12.87bn in 2020

      February 23, 2021

      Finance

      CIBN revives mentorship initiative for bank workers

      February 20, 2021

  • MARKETS
  • ECONOMY
    • AllAfricaAgricAirportsAmericaAsiaAustraliaBreakthroughDealEuropeForeign InvestmentsforexGlobal marketGovernanceIMFMiddle EastNECANigeriaOutlookRich listSouth AfricaSport BusinessTradeU.KWest AfricaWorld Economic forum
      Insurance Business

      Enterprise risk management surges amid pandemic, RIMS reports

      February 25, 2021

      WORLD BUSINESS & ECONOMY

      Hyundai to recall 82,000 electric cars over battery malfunction

      February 25, 2021

      Frontpage

      Global health insurance premiums fall amid pandemic, says new report

      February 24, 2021

      Frontpage

      Insurance M&A record highest growth in Africa, Middle East in 2020

      February 23, 2021

  • COMMODITIES
  • ENERGY
    • AllConferenceElectricityOil and GasPowerRenewable
      Oil and Gas

      REA delivers 100kW hybrid solar mini grid to Edo community

      February 25, 2021

      Oil and Gas

      OPL 310: LEKOIL engages Optimum Petroleum over CRSA agreement

      February 25, 2021

      Frontpage

      Nigeria still losing 200,000bpd crude daily as NNPC enlists army’s intervention

      February 25, 2021

      Frontpage

      Nigeria to sell 170MW electricity capacity to Togo from Calabar plant

      February 24, 2021

  • TECHNOLOGY
  • MANUFACTURING
  • ANALYSIS
    • Analyst Insight

      Coronation MB analysts project sharp rates rise after Nigeria recession exit

      February 25, 2021

      Analyst Insight

      How NITDA can further foster data protection compliance in Nigeria

      February 22, 2021

      Analyst Insight

      Do we need more start-ups in insurance?

      February 16, 2021

      Analyst Insight

      Naira, PMI’s and Inflation in focus

      February 16, 2021

Commodities Frontpage

Nigeria market expects maize price drop to N120,000 per tonne

January 20, 2021161 views0 comments

By Onome Amuge

 

The Nigerian local commodities market is expecting to see maize price drop to between N120,000 and N140,000 per tonne ($317-$369 per tonne at official central bank rate of N379=$1) in the coming days as the market gets set to receive some 300,000 metric tonnes of the commodity next month from strategic drivers in the supply chain.

Nigeria market expects maize price drop to N120,000 per tonne

Read Also:

  • Nigeria records 6% drop in vessel traffic
  • Nigeria, Egypt, Kenya, South Africa lead Africa’s home-tech market, with…
  • Positive buying sentiments in large-cap stocks drive up market cap,…
  • Unilever Nigeria to complete tea business separation by end of 2021
  • How NITDA can further foster data protection compliance in Nigeria

The price of the commodity currently stands at N155,000 per tonne, but observers say efforts to release thousands of tonnes into the market through the Central Bank of Nigeria-financed Anchor Borrowers’ Programme (ABP) and other channels will see that price drop significantly.

Edwin Uche, president of Maize Growers, Processors and Marketers Association of Nigeria (MAGPMAN), said he was optimistic about maize price falling to the range of N120,000 per metric tonne in the next couple of days.

 

The maize to be released was facilitated following a decision by the CBN, in partnership with the Nigeria Customs Service (NCS), in the last quarter of 2020, to ease import waivers to four agro-processing companies to enable them import 262,000 tonnes of maize to bridge the shortfall in production and augment local supply.

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.

As part of its financing framework, the CBN has reportedly facilitated the funding of maize farmers and processors through the ABP Commodity Association, private/prime anchors, state governments, Maize Aggregation Scheme (MAS), and the Commercial Agricultural Credit Scheme (CACS).

Confirming the release of credit to its members by the CBN, Bello Abubakar, president of the Maize Association of Nigeria (MAAN), disclosed that over 200,000 farmers have targeted producing over 25 million metric tonnes of maize in the 2020/2021 planting season.

According to him, the credit secured by the CBN are being distributed to members along the maize value chain, nation-wide. He expressed confidence that the support of the CBN would boost production and ultimately ensure availability as well as stability in the price of the commodity.

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 prices. He equally enjoined the federal government to put in place mechanism to protect farmers from market triggered shocks

Speaking on the recent price hike of maize in the country, Abubakar, attributed it to the current shortfall in the quantity of maize available in the market, insecurity around the major maize producing belt of Niger, Kaduna, Katsina, Zamfara and some areas in Kano State. He further identified the activities of hoarders and middlemen who engage in hoarding of the grain.

Also noting the challenges encountered in the maize sector and the resultant price increase, Edwin Uche, president, Maize Growers, Processors and Marketers Association of Nigeria (MAGPMAN), a prime anchor under the maize production chain, 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 asserted that the projected 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.

On his part, Ayodeji Balogun, CEO, AFEX Commodities Exchange Limited, another major stakeholder in the maize production chain, attributed the price hike to cash-flow problem of farmers which has compelled many farmers to resort to collecting cash from buyers ahead of production and resort to side-selling, especially across the borders with neighbouring countries due to higher prices.

Share on Facebook Tweet Email
PreviousuLesson assures African expansion with successful $7.5m series “A” funding
NextCustodian Life earns ‘A’ rating with stable outlook from GCR

Leave a comment

- Cancel reply

MARKET DATA

Market Videos

Recent Posts

  • Nigeria’s reserves down $1.38bn in 30 days amid rising oil prices
  • Coca-Cola, SWEEP foundation flag off environmental sustainability programme
  • Petrol: CSOs canvass labour union’s support for deregulation
  • Lions’ Den 2021: An opportunity for promising Nigerian entrepreneurs
  • Nigeria bourse in red as selloffs in banking, consumer goods stocks see bears return  

World

Africa

Buhari, Okonjo-Iweala congratulate Adesina over reelection as AfDB President

Europe

EU businesses to cut investments in 2020, says EIB report

America

U.S. increases cost of visa application for Nigerians

Africa

Thatcher-Loving Nigeria Candidate Plans to Overhaul Economy

Africa

AfDB scales up industrialization pace on the continent, delivers improved business access to finance, skills, energy

Frontpage posts

0

Governors want FG to restructure states’ debts

Frontpage April 3, 2020

1
2

CBN pumps $9.98bn into forex market in Q4

Frontpage January 28, 2020

3

Remittance income seen driving economic growth in Africa as Nigeria emerges biggest recipient

Frontpage September 19, 2018

4

SEC vs. OANDO PLC: Bullet by bullet response by Oando to SEC’s decision

Frontpage June 2, 2019

5

Mixed reactions trails 2018 GDP figures as services, agriculture lead growth performance

Frontpage February 12, 2019

SUPPORT

  • Photo Gallery
  • Help Centre
  • About Us
  • Accessibility

LEGAL & PRIVACY

  • Terms & Conditions
  • Privacy
  • Cookies
  • Copyright

SERVICES

  • Conferences & Events
  • Analysts Research
  • Advertising Rate
  • Ebooks

TOOLS

  • Portfolio
  • Newsletters
  • News feed
  • Currency Converter

SUBSCRIBE

Join us to get latest updates on business related news.

[mc4wp_form id="3076"]
  • ABOUT US
  • CONTACT US
  • CAREERS
  • TERMS & CONDITIONS
  • PRIVACY POLICY
Copyright 2017. All rights reserved. BusinessAMLive. A Businessnewscorp Member Company.