Maize dependent commodities to go up as CBN moves to ban importation

By Ezurike Ugochukwu

Maize dependent commodities will be adversely affected as the Central Bank of Nigeria (CBN) has directed all authorised dealers to discontinue the processing of Form M for the importation of maize with immediate effect.

In a circular signed by Dr Ozoemena Nnaji, Director, Trade and Exchange Department of the apex bank in Abuja, it directed all authorised dealers to submit the list of form M already registered for the importation of maize.

The circular further stated that the  bank enjoined the concerned dealers to do so on or before close of business on Wednesday.

The form M forms part of the processes geared towards accessing foreign exchange for importation.

CBN explained that the step was part of CBN’s efforts to increase local production, stimulate rapid economic recovery; and safeguard rural livelihood and increase job which had been lost on account of the novel global coronavirus.

Nigeria presently imports about 400,000 tonnes of maize annually to fill up the gap of its local demand.

No doubt, there are many maize dependent commodities companies that rely on imported maize, whose earnings and profit margins will be affected by this decision.

Looking at other factors that have affected production of maize adversely such  as insecurity in the north, herdsmen menace both in the north and southern part of the country, decay in infrastructure such  as road and  storage facilities that demoralized farmers.

Today, many farmers in the states that are major producers of maize in the country such as, Borno, kaduna, Niger, Taraba, and others are in Internally Displaced Persons(IDP) camp with no hope taking part in this year’s farming season.

If nothing is done  by the government to address these issues, the dream of stimulating economic recovery, safeguarding rural livelihood and increase job and increase the shortfall in the country’s maize demand may be a mirage