AFEX, has predicted price stabilisation for staple grain commodities like maize, soybean, paddy rice, and sorghum, amidst record food inflation in Nigeria....Read Full Article >>➤
In a statement issued to PUNCH Online on Friday to unveil its 2025 annual commodities outlook, “the report projects that local prices are expected to moderate on the back of the government’s implementation of a 150-day import duty on maize, which will up supply and eventually ease pressure on prices.”
AFEX said Nigeria’s economy grappled with record-high inflation, which reached 34.8 per cent in December 2024, and a volatile exchange rate, coupled with challenges in the agricultural sector such as climate change, rising input costs, and low productivity.
The report, which tracks the price and production performance of global and regional markets, alongside projections for the year ahead, provides valuable insights into the agricultural value chain, highlighting challenges and opportunities inherent in the market while providing an accurate forecast that potentially steers price and volumes for the coming season.
AFEX said, “In 2024, we witnessed commodity prices rise by 4 per cent, compared to 2023, which saw a 7 per cent decline in prices. Where the price decline in 2023 was a direct consequence of a 9 per cent drop in food prices and a 5 per cent decline in raw materials, prices in 2024 witnessed an 8 per cent decline in food prices driven by an 11 per cent drop in oils and meals prices and a significant 16 per cent decrease in grain prices.
“However, a sharp 64 per cent increase in beverage prices and a 5 per cent rise in raw material costs eventually tilted prices higher. Global production for maize, a staple grain commodity, reached a record-breaking 1.13 billion metric tonnes in 2024, reflecting a 6 per cent year-on-year increase. This output put a downward pressure on maize prices, which fell by 25 per cent year-on-year.
“In contrast, maize prices in Nigeria rose by 92 per cent year-on-year and closed the year at approximately NGN660,000 per metric tonne, with its highest peak in July where prices hit NGN908,000 per metric tonne.
“Paddy Rice, a staple consumption commodity, witnessed price growth of 6 per cent owing to India’s
export restrictions, seasonal supply tightness, and the adverse impacts of El Niño on global rice
production.”
Also speaking at the unveiling, the president and Chief Executive Officer of AFEX Nigeria, Akinyinka Akintunde said, “As we confront record food inflation and macroeconomic pressures, this report provides critical insights to stabilize Nigeria’s agricultural value chain. Identifying pathways to mitigate climate risks, optimize input costs, and enhance productivity, lays a foundation for resolving food insecurity and fostering
sustainable growth in the sector.”
He said as Nigerians continue to battle with increases in food prices, it is important for stakeholders within the agriculture sector to prioritise concerted efforts aimed at driving innovation within the value chain.
AFEX noted that the report is a single step in the direction of resolution, but however stated that policy coordination as well as private sector engagement, especially within the capital market as a
the catalyst for driving investment in agriculture is needed.
The Executive Chairman, of MITSUN Group, Ikenna Egbukole, said, “The compounding challenges of climate volatility, fragmented supply chains, and under-investment demand urgent, coordinated action. Tackling food insecurity requires a unified approach, leveraging policy reforms, private-sector innovation, and capital market interventions to build resilience across the entire agricultural ecosystem.” ...Read Full Article >>➤
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