Wheat
Business

Wheat import to Nigeria seen rising by 200,000 tons on expanding population

219

Nigeria’s exploding population growth, as well as industrial demand for wheat, key ingredient for making biscuit will likely drive imports into Africa largest oil producer by 200,000 tons or four percent for the marketing year of 2019/20, as production lands during the rainy season (late April-September) are currently under cultivation, data from US government shows.

Nigeria is Africa’s largest populous country with 203.4 million, according to Central Intelligence Agency’s July 2018 estimates, and its growing population at an annual 2.54 percent (2015-20), is causing big shift to consumption of “greater amounts of wheat-flour based products”, country’s growers and bakers said.

“We are witnessing increased consumption of wheat-based foods such as bread, pasta, semolina and even biscuits,” Ishaq Abdulraheem, Chairman of Association of Master Bakers and Caterers of Nigeria, said in the nation’s capital of Abuja.

The US department of agriculture says rise in wheat consumption attributable to population growth as well as industrial demand will drive import from Nigeria’s largest suppliers including Russia, the United States, Canada, and Australia to 5.6 million tons in the marketing year of 2019/20 from 5.4 million tons in the 2018/19 marketing year. Nigeria’s imports of Russian-origin wheat totaled about 1.9 million tons last year, compared to imports of U.S.-origin wheat of 1.7 million tons.

Nigeria is Africa’s leading manufacturer of biscuits, with annual production estimated at 152,490 tons. Leading biscuit manufacturers including OK Biscuits (OLAM International), Yale Biscuits, Niger Foods, Beloxxi Biscuits, and Energy Foods. Nigerian biscuit segment is valued at $617 million, having grown at a compound annual growth rate 16 percent in the last five years, according to KPMG.

“Of Nigeria has the capacity to produce enough wheat for consumption but we haven’t met the consumption targets,” Salim Mohammed said from Kano. Nigerian growers said Nigeria produces nearly one million tons a year, although USDA pegged production at 60,000 tons, with yields holding steady at one metric ton per hectare.

The west African nation’s inability to produce adequate what to sustain itself is attributed to Islamic insurgencies in the country’s northeast region of Adamawa, Bauchi, Borno, Gombe, Taraba, and Yobe; poor soil quality, and climate change affecting conditions. Flooding during July to October 2018, ravaged farms nationwide undermining Nigeria’s food sufficiency campaign.

Seventy percent of the flour milled from wheat goes into bread, pasta, noodles, biscuits in Nigeria, with bakers favoring flour from imported wheat over locally produced commodity because locally produced wheat tends to have higher protein content, lower moisture and lower gluten; characteristics not well suited for bread production, according to Abdulraheem.

Leave a comment

Related Articles

CBN dissolves boards of Union, Keystone, Polaris Banks

The Central Bank of Nigeria (CBN) has announced the dissolution of the...

Heritage Bank: Customers to receive payments within one week – NDIC MD

The Nigerian Deposit Insurance Corporation (NDIC) has assured depositors of Heritage Bank...

Nigeria’s current account balance surges by $1.43bn – IMF

The International Monetary Fund’s World Economic Outlook Database indicators have revealed that...

Three Shell companies in Nigeria, partners spent $42.2m on social investment in 2023

Three Shell companies in Nigeria, partners spent $42.2m on social investment in...

Heritage Bank liquidation: NDIC spells out fund retrieval process for customers

The Nigeria Deposit Insurance Corporation (NDIC) has commenced the liquidation of Heritage...

Update: CBN revokes Heritage Bank’s operating license, appoints NDIC as liquidator

The Central Bank of Nigeria (CBN) has revoked the license of Heritage...

Q1 2024: FBN holdings flaunts impressive performance, posts N238.53bln profit before tax

With its impressive performance as one of the oldest banks in Nigeria...

Naira surges by 9.68% at the official window, closing at N1,339.33/$1

The Nigerian naira appreciated significantly against the US dollar on Monday, closing...

UBA at 75: It’s testament to resilience, innovation, remarkable financial strength – GMD

In its 75 years of operation, the United Bank for Africa (UBA)...

Breaking: Emirates Airlines to resume operations in Nigeria Oct. 1

Emirates Airlines says it plans to resume operations in Nigeria on October...

Western Digital launches SanDisk Desk Drive

Western Digital has launched the SanDisk Desk Drive, the latest addition tonits...

List of five charges Nigerians pay for electronic transactions

Following the latest directives from the Central Bank of Nigeria (CBN) authorizing...

Zenith Bank shareholders approve bank’s restructuring to holding company

“The Founder and Chairman of Zenith Bank Plc, Jim Ovia, expressed his...

UBA increases stake in Kenya, Uganda subsidiaries, eyes East Africa market

Pan-African banking group, United Bank for Africa (UBA) says it has acquired...

CBN sells fresh dollars to BDCs at N1,021/$ as naira loses steam

The Central Bank of Nigeria (CBN) has issued another circular to Bureau...

Naira bullish gains restore confidence among investors, businesses – CBN Gov. Cardoso

The Governor of the Central Bank of Nigeria (CBN), Dr. Yemi Cardoso,...

Pres. Tinubu commends Dangote Group over new gantry price of diesel

President Bola Tinubu has applauded Dangote Oil and Gas Limited for reducing...

Industry and Trade Minister promises Nigerian Breweries, business community enabling environment

The Minister of Industry, Trade, and Investment, Dr. Doris Uzoka-Anite, has reaffirmed...

Transcorp Power Plc grows topline by 57.03%, profit up by 75% in 2023 audited results

Transcorp Power Plc (Transcorp Power), one of the power subsidiaries of Nigeria’s...

UBA records impressive gross earnings rise of 143%, profit hits N757.7bn in financial year 2023

The United Bank for Africa (UBA) Plc has recorded a 143 per...