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Surging food prices: CBN releases 50,000mt of maize to Obasanjo Farms, Olam

Surging food prices: CBN releases 50,000mt of maize to Obasanjo Farms, Olam
June 29
10:22 2021

The Central Bank of Nigeria (CBN) has approved the release of 50,000 metric tonnes of maize to 12 major producers from strategic maize reserves under the anchor borrowers’ programme (ABP).

The apex bank 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.

In a statement on Monday, Osita Nwanisobi, CBN spokesperson, said the release, which is the third of such releases to companies, will reduce the price of grain in the market by checking the activities of middlemen who are hoarding the product and causing artificial scarcity.

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He expressed optimism that the initiative would crash the price of maize, reduce pressure on the market, and make the product directly available to feed producers, thereby reducing the price of poultry feed in the country.

According to Nwasinobi,  as part of its financing framework, the CBN would continue to facilitate the funding of maize farmers and processors through the ABP, private/prime anchors, state governments, maize aggregation scheme (MAS), and the commercial agricultural credit scheme (CACS).

In March, the CBN released 50,000 metric tonnes of maize to agribusiness companies, which was said to have caused the market price of maize to drop from N200,000 per metric tonnes to about N180,000 per metric tonnes.

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Last week, the apex bank, in a bid to address the rising cost of food prices in the Nigerian market, collaborated with the Rice Farmers Association of Nigeria (RIFAN) to distribute 27,000 metric tonnes of rice paddies directly to millers nationwide.

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