Foreign Demand Spurs Nigerian Grain Prices to Record Highs
A surge in demand for Nigerian grains by merchants from neighbouring African countries and beyond has led to soaring prices, according to a recent investigation by Daily Trust Saturday. The scramble for farm produce like maize, millet, sorghum, rice, ginger, hibiscus (zobo), soybeans, and sesame has resulted in record-high prices, even during harvest periods. This trend has raised concerns about food affordability, especially for Nigerians facing an inflation rate of 28.2%.
Foreign merchants, armed with hard currencies such as the US dollar, have flooded local markets, outbidding domestic traders and driving prices to unprecedented levels. The situation is particularly evident in states like Katsina, where merchants from Niger Republic are purchasing large quantities of grains, despite economic sanctions imposed on their country by ECOWAS.
Similarly, merchants from Mali and Ghana are actively participating in Nigeria’s grain market, seeking commodities like chili pepper, palm, tamarind, and more for industrial use. These activities have triggered price hikes and scarcity, with some commodities becoming hotly sought-after by foreign companies.
The influx of foreign buyers is not limited to grains alone. Chinese nationals are also heavily involved in purchasing soybeans and maize in Taraba State. While this has caused prices to rise, it has also provided relief to Nigerian farmers who witnessed a bumper harvest of soybeans this year.
Experts have offered varied perspectives on the situation. Some have called for interventions to support irrigation farming, emphasizing the importance of agriculture in Nigeria’s economic growth. Others suggest that the government should focus on value addition and exportation of finished goods rather than raw produce.
Overall, while the surge in demand presents economic opportunities, it also poses challenges to food security and affordability within Nigeria.
Source: Daily Trust
