Friday, March 25, 2022 / 3:24 PM / by CSL  Research / Header Image Credit: CBN 

The Central Bank of Nigeria (CBN) yesterday, through its agro partnership with maize farmers unveiled about 21 pyramids of maize in Kaduna, the second set of maize pyramids under the CBN/Maize Association of Nigeria (MAAN) Anchor Borrowers Programme (ABP). According to the Food and Agricultural Organisation (FAO), maize is the most important food crop in sub- Saharan Africa. However, there has been a reduced supply of maize in Nigeria in recent years owing to the devastating impact of climate change, worsening insecurity issues in the country that has forced many farmers to abandon their farmlands and the impact of the COVID-19 pandemic on the entire agricultural supply chain. 

Consumption of Maize, also known as corn in Nigeria, is either as corn flour for animal feed, confectionery or is eaten directly as roasted or boiled corn. It can also be prepared alongside other staples, such as porridge. Based on a 2020 USDA report, over 60% of Nigeria's maize production goes into animal feed, especially poultry feed. Household consumption accounts for only about 10-15%, while the remaining is used as raw material for food manufacturers such as makers of infant cereal. Corn prices have more than doubled from an average of N95,000 per tonne in early 2020 to about N260,000 per tonne as of March 2022, mainly due to heightened demand and short supply The country's poultry sector is usually the most threatened by the strained supply of corn and increasing prices. 

According to the United States Department of Agriculture, the production of maize increased by 16% in 2021. The increase came over a year after the Central Bank of Nigeria halted the sale of foreign exchange from official sources for the importation of maize in a bid to cut imports and boost domestic production. The Central Bank of Nigeria (CBN) had in July 2020 directed banks to stop processing Forms M for the importation of maize with immediate effect, stating that the decision was part of efforts to increase local production, stimulate a rapid economic recovery and safeguard rural livelihoods.