INVESTMENT OPPORTUNITIES IN WHEAT IN NIGERIA

Prospective Agribusiness Investors in Nigeria are increasingly seeking investment opportunities in Wheat In Nigeria and its value chain.

Wheat is a specie of cereal grasses of the genus Triticum (family Poaceae) and their edible grains. Wheat is one of the oldest and most important of the cereal crops.

The part of the country that supports wheat production In Nigeria is majorly the Northern.

These include: Kano, Sokoto, Zamfara, Kebbi, Katsina, Yobe, Kaduna, Borno, Adamawa, Jigawa and Gombe.

Production Statistic:
Nigeria’s annual production rate of wheat is about 400,000 metric tonnes {MT}Nigeria.

Consumption Statistics:
Nigeria consumes about 4.2 – 4.7 million Metric Tonnes of wheat annually.

Yield per Hectare:
The yield per hectare of wheat under good practice in Nigeria is currently about 2 – 2.5 MT per hectare and up to 4MT per hectare for new improved variety.

Local Pricing:
Locally the price of wheat in Nigeria currently is about ₦20,000 – ₦22,000 per 100kg

Forms Traded in Nigeria;
– Local Wheat
– Imported Wheat

Market Driven By:
Demand for various types of wheat (White, Hard drum, durum) etc

Demand and use in semovita industries.

As raw materials in industries for the production of biscuit, paste, bread etc.

Processing:

Investors are advised to explore the opportunities in local wheat processing in Nigeria.

The market for processed wheat is driven by the following industries and uses;

Demand for various types of wheat (White, Hard drum, durum) etc
Demand and use in semovita industries.
As raw materials in industries for the production of biscuit, paste, bread etc.
Wheat flour
Spaghetti & Macroni
Bread etc.
Planting:
Wheat is planted in Nigeria between November/December
Harvesting:
It is harvested between March/April.

Storage
Wheat should be stored in PP bags at a room temperature environment:
-Dry
– Clean
-Good ventilated store

Investment Challenges;

Trade Constraint;

The major constraint to investment in production(farming) of wheat in Nigeria is majorly the threat posed by foreign wheat imported into Nigeria.

Farmers in Nigeria have to annually battle with the price of local wheat being crashed by imported foreign grown wheat.

Farmers’ Challenge;

-Limited access to loan and finance.
-Very limited access to Agric Extension services
-Lack of stability in wheat price of local wheat.
-Absence of government subsidy to encourage farmers.

MARKET PROSPECT
Wheat is a major staple crop that investors should explore investing on – In Nigeria.

Prospective investors should be encouraged by the government’s determination to substitute the import of wheat by stimulating local production.

Also very recently, the Federal ministry of Agriculture and The Federal ministry of Trade and Investment are exploring options in policies that would limit and control the import of wheat and consequently protect local farmers’ investment.

Wealth would be created for prospective investors by investing to close the current gap and deficit of about 4.3 Million Metric Tonnes which is currently filled by import.

With a projected Nigerian population of 400 Million in 2050, the demand for wheat in Nigeria would continue grow in geometrical projection. This is a green flag for investors to explore investment opportunities in wheat in Nigeria.

Investment Summary:
Prospective investors should explore investment opportunities in wheat in Nigeria in the following wheat value chain in Nigeria;
– Wheat Farming
– Wheat Processing
– Local Storage

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