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Millers Association of Nigeria and wheat farmers have fixed the Guaranteed Minimum Price for wheat produced in the country at N140,000 per ton.
At the formal signing of the Memorandum of Understanding between the Wheat Farmers Association of Nigeria (WFAN) and the Flour Millers Association (FMAN), the Vice President of FMAN, Mr. Femi Jaiyeola, in Abuja, said the MOU was part of their commitment to off-take all locally produced wheat, which is in line with their efforts to support the development of Nigeria’s wheat value chain.
The arrangement of the MOU only covers the first year of production as the guaranteed price could be reviewed upward or downward depending on the market factors.
Jaiyeola said the price was fair enough for the millers, adding that wheat is a commodity and its production varies from year to year. He added, imported wheat arrives the silo at N70,000 per ton, thus it is a sacrifice to boost local wheat production.
He noted that Nigeria consumes 4.5million mt of wheat as against 120,000mt being produced, adding that they have come up with targeted programme of support to the Lake Chad Research Institute and wheat farmers, which include the provision of seeds, threshers, water pumps, demonstration farms and research grants for seed development and extension services.
Minister of State Agriculture, Heineken Lokpobiri, said with current challenges facing the country and difficulties of sourcing forex in the black market, it has become important to develop local production of wheat, so that the country does not depend on importation.
Commending the farmers and millers for coming to an agreeable price, Lokpobiri urged the millers to support research institutes to boost research in wheat production and also export to other countries.
Executive Director, Lake Chad Research Institute, Dr. Oluwasina Olabanji said with the rate at which wheat is produced in the country, Nigeria would be self sufficient in wheat production in the next five years.
