Wednesday, Dec 1st 2021 11:47 AM

Market Digest Nigeria


CBN to crash price of maize

CBN to crash price of maize as it releases 50,000 MT to 12 companies

The Central Bank of Nigeria (CBN), has moved to crash the price of maize as it has approved the release of 50,000 metric tonnes of maize to 12 major producers, from the strategic maize reserve (SMR) under its Anchor Borrowers’ Programme (ABP).

The apex bank said that the release was to enable moderation and price control in the Nigerian market adding that the action, the third of such releases to the companies, was intended to check activities of middlemen that cause hoarding and artificial scarcity.

While confirming the release of the grains, the acting Director, Corporate Communications of CBN, Mr Osita Nwanisobi, was optimistic that the release would crash the prices of maize and reduce pressure on the market.

According to NAN, a statement obtained from the Central Bank of Nigeria (CBN) listed recipients of the grains to include Premier Flour Mills, Crown-Olam, Grand Cereals, Animal Care, Amobyn and Hybrid Feeds.

Others are Obasanjo Farms, Zartech, Wacot, Sayeed Farms, Pandagri Novum and Premium Farms.

Nwanisobi said that it would make the product directly available to feed producers, thereby reducing the price of poultry feed in the country.

He said it would also do so through Private/Prime Anchors, State Governments, Maize Aggregation Scheme and the Commercial Agricultural Credit Scheme.

Also speaking on the development, Dr Bello Abubakar, National President of the Maize Association of Nigeria, urged middlemen to desist from taking advantage of the supply gap to hike the prices of grains.

He assured that farmers in Nigeria would maintain reasonable pricing of the products.

What you should know

It can be recalled that a few days ago, the CBN, in collaboration with the Rice Farmers Association of Nigeria (RIFAN), had moved to crash the price of rice across the country with the distribution of 27,000 metric tonnes of rice paddies directly to millers nationwide.

The move is part of the measures initiated by the apex bank to help address the rising cost of food prices in the Nigerian market, Also in response to the activities of middlemen, the CBN, in January 2021, released 300,000 metric tonnes of maize, which forced a substantial reduction in the price of maize per metric tonne.

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