Recently, the Federal Government, through the Central Bank of Nigeria (CBN), directed all authorised dealers in foreign exchange (forex) to immediately stop processing Form M for maize importation for importers. TAIWO HASSAN evaluates the impacts of the directive on Nigeria’s maize production value chain

No doubt, the adverse effect of the novel coronavirus on global food security is overwhelming, leaving disruption in import and export of agric produce globally, even as countries focused on feeding its populace.
In Nigeria, the Federal Government has maintained that it is discouraging continued importation of agric produce as part of its policy on restrictions by denying importers of agric commodities the much needed forex.
This is in line with President Muhammadu Buhari’s slogan: ‘Nigerians should eat what we produce locally for consumption.’
However, the latest in this line of encouraging local production in the country’s agric sector was the pronouncement by the apex bank to ban importers from applying for forex for maize importation.

Stakeholders’ reactions
Indeed, the Federal Government through CBN in a circular had restricted the issuance of forex for maize importation in line with the country’s plans to boost local maize production from its current 12 million metric tonnes to about 25 million metric tonnes, which is being targeted for production during this year’s planting season.
Particularly, the apex bank’s announcement has introduced dichotomy into industry stakeholders’ views on the impacts of the directive.
While speaking on the directive, the President of Maize Association of Nigeria (MAAN), Dr. Abubakar Bello, commended the apex bank for the directive, saying it would bring about aggressive maize production growth in the country with much impact on the value chains.
He said government’s decision to ban maize importation was a great step towards achieving self-sufficiency in food production by its members.
Bello noted that about 25 million metric tonnes of maize were targeted for production during this year’s planting season.
According to him, the contribution by government will uplift production, adding that CBN, through its Anchor Borrowers’ Programme, had released N16 billion to the farmers.
He said: “This 2020 wet season programme, maize production of over 250,000 hectares of land, have been cultivated by MAAN members only, with this and other partners, maize production would be doubled.
“To achieve this, CBN has supported by providing high yielding maize seeds to all our members.
“With all these great steps being taken by government, the country can be self-sufficient in maize production in the next few months if we all believe in the capacity of our farmers and put our hands on the plough.
“We have done it before and we can achieve it again as it was done in 2005.”
In his own submission, the Chairman and Regional Coordinator, Southwest of All Farmers Association of Nigeria (AFAN), Dr. Femi Oke, said that the idea to ban maize import was good as the COVID-19 experience has brought about needed change towards achieving sustainable self-sufficient in agriculture.
Oke explained that when one considered the fortunes being spent on maize importation by importers, it bleeds the country’s national reserve and foreign exchange, emphasising that there is no such luxury again due to COVID-19.
To him, Nigeria needs to look inward towards promoting her local produce not only to feed its populace, but also to achieve self-sufficiency in food production.
The AFAN South West chairman posited that the Federal Government’s policy would drive maize production to meet industry and food security needs and, at the same time, stimulate large scale investment in maize production in the form of backward integration by conglomerates utilising maize such as Flour Mills Nigeria and Olam Grains.
However, despite the nationwide frenzy towards promoting self-sufficiency in food production, the Delta State chapter of the Poultry Association of Nigeria (PAN) recently beckoned on the Federal Government to permit the importation of maize into the country for prompt feed mills for poultry animals.
This demand from the association came as a huge surprise for agric stakeholders, especially with the country edging towards attaining self-worth in producing what it consumes, as President Muhammadu Buhari had envisaged in the past.
The association, making a plea for its clamour, bemoaned that the supply by local maize producers was below demand, amid the incessant hike in price.
In his reaction to the forex directive on maize, the Registrar of the Nigerian Institute of Animal Science (NIAS), Prof. Eustace Iyayi, said that owing to Federal Government’s decision to temporarily close the land borders and restrict food import, Nigeria must have saved about N50 billion from the poultry industry since the policy took off.
Iyayi noted that poultry farmers should not be wary and disturbed by the CBN’s directive, describing it as a national clarion call to uplift the country’s maize production level at this post-COVID-19 period.
Halima Njobdi, the woman leader of AFAN, explained that the initiative was commendable in all ramifications, but that it is the hope of industry stakeholders to see much collaboration between local poultry farmers and maize producers/off-takers.
According to her, the policy, in the final analysis, could be the tincture to really make the country shoot up its production from about 12 million metric tonnes to about 20 million tonnes and more to be.
The AFAN woman leader noted that fully maize secure is apt and necessary as demand for the grain rises as population and animal production rise.

Importance of maize component
Maize is seen as an essential component of animal feeds and has played a critical role in the animal industry overtime.
The International Grains Council placed Nigeria’s 2018/19 maize production estimate at 11.0 million tonnes, which equates to a 16.1 per cent share of sub-Saharan Africa (SSA)’s maize harvest.
Also, about 50 per cent of the maize produced is consumed by the animal feed sector, with poultry claiming as much as 98 per cent of the total feed produced in Nigeria.

Last line
With CBN’s ban on maize importation in place, industry stakeholders believe it will create millions of direct and indirect jobs post-COVID-19.