Food security: CBN drives release of 50,000MT of maize to poultry producers
…Extends intervention-loan repayment till 2022
By Kayode Tokede
In its moves to tackle food security in the country, the Central Bank of Nigeria (CBN) through its Anchor Borrowers’ Programme (ABP) has released 50,000 metric tonnes of Maize into the 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 ABP to major poultry feed producers and poultry producers in the country.
The CBN facilitated the release of the 50,000 metric tonnes of Maize in the second week of February. This action has made an impact as the Maize Market has recorded a reduction in price from N200,000.00 per metric tonnes to about N180,000.00 per metric tonnes. It is still anticipated that the current price will further reduce.
Major beneficiaries of the February release include: Premier Flour Mills, Crown – Olam, Grand Cereals, Animal Care, Amobyn and Hybrid Feeds. Others 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 that the Central Bank of Nigeria had in January this year, announced to release 300,000 metric tonnes of Maize into the Nigerian Maize Market. This 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, that 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 ABP Commodity Association, Private/Prime Anchors, State Governments, Maize Aggregation Scheme (MAS), and the Commercial Agricultural Credit Scheme (CACS).
The apex bank, through its anchor borrowers’ programme, is set to release about 300,000 metric tonnes of maize.
In a statement, the apex bank said this is expected to help reduce the prices of the product, increase demand and enhance the profits of maize farmers.
The CBN has been collaborating with the Nigeria Customs Service (NCS), in the last quarter of 2020, to facilitate import waivers for four agro-processing companies to import 262,000 tonnes of maize to bridge the shortfall in production and augment local production.
Speaking with journalists in Abuja, Bello Abubakar, national president of Maize Association of Nigeria (MAAN) blamed insecurity around the major maize producing belt of Niger, Kaduna, Katsina, Zamfara and some parts of Kano for contributing to the insufficiency of the product in the market.
On his part, national president, Maize Growers Processors and Marketers Association of Nigeria (MAGPAMAN), Edwin Uche said banditry, drought in some parts of the country in 2020 and activities of middlemen are responsible for the current high price.
He explained that the planned dry season farming which is first of its kind in the country, timely distribution of inputs to farmers and improved security, would significantly enhance production and ensure stability in price.
“As part of the Bank’s financing framework, the CBN has facilitated the funding of maize farmers and processors through the ABP Commodity Association, Private/Prime Anchors, State Governments, MAS, and the CACS,” the statement read.
The Central Bank of Nigeria has said it is giving another one-year moratorium on all principal repayments for COVID-19 intervention loans through its participating Other Financial Institutions (OFI)
The apex bank in a circular signed by the Director, Financial Policy and Regulation Department, CBN, Kevin Amugo, on Wednesday, stated that the one-year moratorium now extended till March 28, 2022.
The CBN last year reduced the interest rates on its intervention facilities from nine per cent to five per cent annum for one-year effective March 1, 2020 as part of measures to mitigate the negative impact of COVID-19 pandemic on Nigerian economy.
According to him, Credit facilities, availed through participating banks and OFIs, were also granted a one-year moratorium on all principal payments and it was effect from March 1, 2020.
Amugo in a signed circular on Wednesday said, “Following the expiration of the above timelines, the CBN hereby approved the extension by another 12 months to February 28, 2022 of the discounted interest rate for the CBN intervention facilities.
“The roll-over of the moratorium on the above facilities shall be considered on a case by case basis.”
The apex bank last year had said it was part of its continued efforts to mitigate the impact of coronavirus on households, businesses and regulated institutions, it had reduced interest rates on its facilities through the participating OFIs from nine per cent to five per cent per annum for one year effective March 1, 2020.
“The CBN intervention facilities obtained through participating OFIs will be given a further one-year moratorium on all principal repayments, also effective March 1, 2020,” it stated.
According to the circular, the OFIs have also been granted leave to consider temporary and time-limited restructuring of the tenor and loan terms for households and businesses affected by COVID-19, subject to the recently issued guidelines for restructuring affected credit facilities in the OFI subsector.
