Maize Price Fluctuations: A Threat to Food Security in Nigeria

Maize is one of the most important staple food crops in Nigeria, accounting for over 50% of the country’s total grain consumption and providing about 30% of the country’s daily calorie intake. It is also a key ingredient in livestock feed, making it essential for poultry, piggery, and dairy industries. However, maize prices in Nigeria have been highly volatile in recent years, posing a serious threat to food security and economic growth.

According to the Poultry Association of Nigeria, In 2023, maize prices in Nigeria reached a record high, with the average price per ton exceeding N480,000. This represents a more than 100% increase from the previous year. The surge in maize prices has been attributed to several factors.

• Climate change: Nigeria has experienced increasingly erratic weather patterns in recent years, with more frequent droughts and floods. These extreme weather events have damaged maize crops and reduced yields.
• The Nigerian maize market is characterized by several inefficiencies, such as a lack of market information and transparency. This can make it difficult for farmers and consumers to make informed decisions about when to buy and sell maize, which can contribute to price volatility.
• Input costs: The cost of agricultural inputs, such as fertilizer and seeds, has increased significantly in recent years. This has made it more expensive for farmers to produce maize.
• Pest and Disease: Maize is vulnerable to pests and diseases and inadequate pest control measures can lead to crop losses. Outbreaks of diseases like maize rust or fall armyworm can cause a decline, in maize production.
• Weak infrastructure: Nigeria’s road network is in poor condition, making it difficult and expensive to transport maize from rural areas to urban markets. Inefficient transportation and distribution networks often result in regional disparities in maize prices. The cost of moving maize from surplus regions to deficit regions can further increase prices in areas where maize is scarce.
• Government policies: Some government policies include import restrictions or subsidies that influence the price of maize in the market. Import restriction may lower the supply of maize in the market and subsidies can disrupt the normal price formation process.
• Insecurity: The insecurity in Nigeria particularly in the north where most agricultural activities take place has displaced millions of people and disrupted agricultural production. This has led to a shortage of maize in the country.

The high and volatile prices of maize have had a number of negative consequences for Nigeria. It has made it more difficult for people to afford food. This has led to an increase in food insecurity, particularly among the poor and vulnerable. Also, the high cost of maize has made it less competitive for Nigerian poultry and livestock producers and this has led to a decline in production and an increase in imports.

The volatility of maize prices has made it difficult for farmers to plan their production and investment decisions. This has discouraged investment in the maize sector and slowed down agricultural growth.

Solutions to the Threat of Maize Price Fluctuation:

Increasing maize production can reduce price fluctuation and it can be achieved by investing in agricultural research and development, providing farmers with access to improved seeds and fertilizers, and improving irrigation infrastructure.

Farmers and traders often lack access to timely and accurate market information. This can lead to poor decision-making and contribute to price volatility. Improving market information can help to reduce price volatility and improve the efficiency of the maize supply chain. The recent effort of Agriarche Ltd by posting a weekly price update of major commodities on its social media is helping to mitigate the effects of price volatility. The recent price update shows the price difference from the previous week(23-25 October 2023). Kasuwa App gives more detailed information on prices in individual markets and specific commodities.

Maize is a perishable crop, and a significant amount of maize is lost to pests, diseases, and poor storage practices. Reducing post-harvest losses can help to increase the availability of maize and stabilize prices.

Investing in climate-smart agriculture practices can help to reduce the impact of climate change on maize production. This includes practices such as drought-tolerant seeds and water conservation techniques.

Investing in infrastructure, such as roads and storage facilities, can help to reduce the cost of transporting and storing maize, which can also help to stabilize prices.

Fluctuation in maize prices poses a major risk to food security and millions of livelihoods and household nutrition. To make maize remain a reliable sustenance for Nigeria, the combined efforts of the state, agricultural stakeholders, and the international communities are vital. Through adopting these measures, Nigeria takes strides towards a more reliable and safer food environment for its people.