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Nigeria’s Wheat Production Push: A Strategy to Strengthen the Naira and Boost the Economy

by Tatiana Ivanova
24 December 2024
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Nigeria’s Wheat Production Push: A Strategy to Strengthen the Naira and Boost the Economy
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In an effort to tackle the country’s ongoing economic challenges and reduce dependence on wheat imports, Nigeria’s Minister of Agriculture and Food Security, Abubakar Kyari, has set an ambitious goal to produce over 2 million tonnes of wheat across 19 northern states by 2025. The initiative is a key part of the National Agricultural Growth Scheme and Agro-Pocket Programme, which aims to enhance local agricultural production, create jobs, and improve the country’s economic stability.

The program is designed to reduce Nigeria’s reliance on imported wheat, which costs the country billions of dollars each year. By boosting local production, the government hopes to lower importation costs, create more jobs, and provide a much-needed boost to the national currency, the Naira.

“We are aiming for about a 60 percent yield from this initiative, which will result in over 2 million tonnes of wheat harvested across the 19 northern states,” said Kyari, speaking at an assessment in Gombe State. “This will not only help close the wheat production gap but also enhance local consumption and reduce costs.”

Strategic Focus on Wheat and Regional Strengths

The program focuses primarily on wheat, but it is also leveraging the region’s comparative advantages in producing other agricultural crops. The Minister emphasized that, by enhancing wheat production, the initiative would contribute to reducing Nigeria’s wheat deficit, promote local consumption, and reduce the country’s import bills. As part of the broader strategy, the government is also working to establish more efficient supply chains and strengthen logistical frameworks to ensure timely distribution of farming inputs.

This initiative is expected to foster substantial economic benefits, with wheat serving as a cornerstone of the broader agricultural development strategy. According to Kyari, the country aims to create significant employment opportunities, with estimates of 40 to 80 workers per participating farm, showing how agricultural programs can drive both employment and economic growth.

Tackling Inflation Through Transportation Solutions

Beyond increasing wheat production, the Nigerian government is also addressing the issue of food inflation—a challenge exacerbated by high transportation costs. To combat this, Kyari announced plans to establish a Compressed Natural Gas (CNG) centre in Gombe State, which is expected to lower the cost of transportation for farmers and help reduce food prices nationwide. By converting vehicles to run on cheaper natural gas, the government believes it can drive down transportation costs and make food more affordable.

Currently, Nigeria has 150 CNG centres, with plans to add 40 more by the end of the year. The establishment of CNG centres and filling stations is expected to have a direct impact on food prices, reducing the inflationary pressures that have been challenging the economy. According to the Minister, this solution could significantly ease the “elephant of inflation” in Nigeria by February 2025, bringing down the cost of food for citizens.

Nigeria’s focus on wheat production is a promising strategy to address the country’s economic and agricultural challenges. By setting an ambitious target of 2 million tonnes of wheat and leveraging the strengths of the northern region, Nigeria aims to reduce wheat imports, bolster local food production, and strengthen the Naira. The program’s broader goals of improving logistics, creating jobs, and addressing food inflation further demonstrate the potential for agriculture to play a pivotal role in economic recovery.

The CNG centre initiative also highlights the government’s commitment to addressing inflation and creating more efficient agricultural supply chains. For farmers, agronomists, and agricultural engineers, this ambitious program offers a glimpse of the future of agriculture in Nigeria—a future where food security, economic stability, and sustainability are top priorities.

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Tags: agricultural policyagriculture developmentAgro Economic GrowthCNG Transportationfood inflationfood securityNaira StrengtheningNigeria Wheat ProductionWheat Harvest

Tatiana Ivanova

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