CBN Facilitates Release of 50,000 MT of Maize, Drops Price of commodity



 

The Central Bank of Nigeria (CBN) has made good its word, as it has released 50,000 metric tonnes of Maize into the Nigerian market. The Bank’s February 2021 release of Maize in fulfilment of its pledge to reduce the price of the commodity, was done through the Anchor Borrowers’ (ABP) to major poultry feed producers and poultry producers in the country.

 

The CBN facilitated release of the 50,000 metric tonnes of Maize in the second of February, has made an impact as the Maize Market has recorded a reduction in price from 200,000.00 per metric tonnes to about 180,000.00 per metric tonnes. It is still anticipated the current will further reduce.

 

Major beneficiaries of the February release include: Premier Flour Mills, Crown – Olam, Grand Cereals, Animal Care, Amobyn and Hybrid Feeds. include Zartech, Wacot, Sayeed Farms, Pandagri Novum and Premium Farms as well as the South West, South-South, North West and North Central chapters of the Poultry Association of Nigeria (PAN).

 

The benefiting companies represent the major players in the poultry value chain in the country.

The release of the 50,000 metric tonnes of Maize forestall the pressure and reduce the activities of intermediaries (middlemen) in the Nigerian Maize market.

It will be recalled the Central Bank of Nigeria had in January year, announced to release 300,000 metric tonnes of Maize into the Nigerian Maize Market.   is to bridge the shortfall in production and augment local production of the commodity.

 

The current shortfall in the quantity of maize available in the market, CBN is working on mitigating, is attributed to activities of banditry, drought in some parts of the country last year, activities of hoarders and middlemen as well as insecurity around the major maize producing belt of Niger, Kaduna, Katsina, Zamfara and part of Kano states.

As part of the Bank’s financing framework, the CBN facilitates the funding of maize farmers and processors through the Anchor Borrowers’ (ABP) Commodity Association, Private/Prime Anchors, State Governments, Maize Aggregation Scheme (MAS), and the Commercial Agricultural Credit Scheme (CACS).