Challenges of the maize industry in Nigeria

Apart from being grown for local consumption a wide variety of products are derived from maize.

These include baby powder, cosmetics and golf tees. Maize, more commonly known as corn, is also used to create a form of plastic for use in items such as pens, coffee mugs and ice scrapers.

Maize products also include foods, from corn oil to popcorn and muffins. Biofuels, such as ethanol, are also maize products

With regards to the nutrients maize contains starch, fibre, protein and fat (germ oil), which is a good raw material for processing by-products.

For example, corn is dry ground in a flour processing plant. After sieving the flour, the remaining part on the sieve is generally called corn. The bran obtained from maize can be used as feed for dairy cows. Maize is one of the popular crops grown across many states here in Nigeria.

But Nigerian farmers have been groaning since the Tinubu-led administration started to encourage the mass importation of maize along with rice in 2024.

The local farmers have expressed concerns because of the takeover of imported rice and maize in the country’s markets, that is at the expense of locally made grains. How do they make profit as rice and maize prices have significantly dropped across Nigerian markets in the country? That is the million naira question.

It would be recalled that the Federal Government in July 2024 announced a 150-day import waiver for rice, maize, and other staple foods. The policy has led to a drop in the prices of food items. A market survey found that a 50-kilogramme bag of rice costs N65,000 to N68,000, and maize sells for N35,000 to N37,000 per bag,hj while foreign ones cost N83,000 per bag.

This has reduced the profit margin for local rice and maize farmers, resulting in the protest against the products’ continued importation into Nigeria.

Another factor that is worsening the situation is the escalation in the price of fertilisers, which has brought about the increased cost of production and has further compounded bottom-line price issues.

According to an expert on the critical issue , Prof. Godwin Oyedokun. of Lead University ,Ibadan the imports of rice and maize cause oversupply in the market and would impact local farmers who struggle to compete with imported goods. He explained that it can lead to an oversupply of maize and rice in the market, which often drives prices down. This of course , negatively impacts local farmers who struggle to compete with imported goods.

As a way forward, he urged the federal government to address concerns raised by Nigerian farmers. “To address these complaints, it’s important to engage in a dialogue with farmers to understand their perspectives and challenges. These include: “Support for Local Production: Advocating for policies that incentivize local grain production, such as subsidies, access to credit, and investment in agricultural technology, can help level the playing field.

Read also: Food security: FG supports 25 maize farmers with inputs

Furthermore, ” Implementing or increasing tariffs on imported grains could protect local farmers and encourage consumers to buy local produce.Also, on “Quality Control:Ensuring that imported grains meet certain quality standards can help maintain consumer confidence in local products and encourage purchases from local farmers.

“Market Access: Facilitating better access for farmers to markets can help them get fair prices for their products, reducing the impact of imports on their livelihoods.

“Education and Training: Providing farmers with resources and training on modern agricultural practices can improve productivity and help them compete more effectively.

“Ultimately, a balanced approach that considers both the needs of consumers and the sustainability of local agriculture is essential for long-term food security and economic stability in Nigeria. Listening to farmers and involving them in the decision-making process can lead to more effective policies that benefit everyone,” he expressed in a media interview, as published by Daily Post.

Going into the challenges faced by the millers one is the inadequate supply of electricity, which hampers the production process and increases the cost of production. Another one is the lack of adequate transportation systems, which makes it difficult for maize milling companies to access remote communities where most farmers reside.

Stated below are the views of an expert in the field of maize milling,

Jan Jordan: They have to obtain the right maize milling equipment. Reputable local milling machine dealers or manufacturers such as Roff, will offer the most appropriate mill for your area and needs. Always make sure spare parts can be easily sourced and delivered to your location.

For bigger mills, milling machine suppliers will pay a visit to your site to deliver on your specific requirements, and provide a full after-sales service. The good news is that if proper and regular maintenance is carried out, little can go wrong with a quality small-to-medium maize milling machine, like Roff’s SP-1. The SP-1 provides all the essential components needed to get you started in maize milling and produce high-quality maize meal.

For those who do not have the capital to start their maize milling business, you can consider these two options to acquire funding:

Government development funds These are usually medium-term loans (three- to seven-year period), where interest is charged at prime plus related rates. In order to apply for this kind of funding, you need a well written business plan and other motivational documents. The application process takes at least six weeks.

Financing at commercial banks Also medium-term loans (10-year period), these loans offer interest charged at prime plus related rates. To apply for this kind of funding, you need a well written business plan and security in the form of assets. The application process takes at least two weeks.

Lacking the knowledge to map out a business plan One of the key steps on your road to becoming a maize milling entrepreneur will be to write a solid business plan. Although a business plan is by no means a guarantee that you will secure the funding you need, it will go a long way towards clarifying in your own mind what you need to do in order to get your venture off the ground.

Writing your first business plan doesn’t have to be a daunting experience.

Limited availability of sales contracts from big customers For young entrepreneurs, it’s best to understand and focus on the domestic market and invest in servicing smaller, local communities first. This way you will face less risk and gain experience before expanding into new, bigger markets.

It is also important to identify the maize product you’ll be producing so you can research and understand your target market’s wants and needs fully.

Roff has helped thousands of entrepreneurs across Africa. We have learned a lot in our 30 years of operation, and use that experience and knowledge to help drive your success. Contact us if you want to learn more about your local market and industry.

Finding and training the right people. Milling plants can’t run without staff to operate the machines and perform important daily tasks. Finding the right people and training them to function optimally is just as important as finding the right milling machine.

Millers discussion is of necessity. The success of your milling business depends heavily on the competency of your employees. Roff will help you train the operators as part of our standard installation procedure – and since many of our machines are built for easy operation, your team will be up and running in no time.

These are the valid views of Jan Jordan which Nigerians who are employed in the maize milling industry should act on to overcome the current challenges bedeviling the industry.