Wheat imports to Nigeria in 2018-19 are forecast to rise 4per cent from the previous year to 5.4 million tons, according to the Global Agricultural Information Network report from the U.S. Department of Agriculture (USDA).
Nigeria is a massive market for wheat flour served by some of the world’s biggest flour milling companies, including Flour Mills of Nigeria, Honeywell Flourmills and Dangote Flour Mills.
The USDA attributed the increase to flour millers’ growing access to foreign exchange to pay for imports.
The increase comes as Nigeria struggles to expand wheat production, which has been stagnant at 60,000 tonnes in the last three years.
“Despite growing demand for wheat and higher prices, insecurity (arising from Islamist group Boko Haram) continues to limit access to farmland in Nigeria’s main wheat production areas,” the USDA said. “The average production cost of wheat hovers at roughly $420 per ton, selling at $600 per ton in the Sahel region. High production costs are leading farmers and private sector investors to prioritize production for export, where they can obtain higher returns.”
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