The Nation Newspaper

Tag: food prices

  • Food prices continue to drive Nigeria’s headline inflation

    Food prices continue to drive Nigeria’s headline inflation

    • By Kenechukwu Aguolu

    Sir: It is no longer news that Nigeria’s headline inflation on year- on- year basis declined for the first time since December 2022. According to the National Bureau of Statistics, it dropped to 33.40% in July from 34.19% in June. It is no fluke as the month-on-month headline inflation declined consistently since March, with June as an exception. It is important to note that inflation only started to decelerate after the Central Bank, at its first Monetary Policy Meeting of 2024, held on February 26/7 , the benchmark interest rate, by 400 basis points from 18.75% to 22.75%. It made subsequent increases, as need arose. The benchmark interest rate is currently 26.75%.

    Interestingly, from January to July , food and non-alcoholic beverages inflation contributed to no less than 51.8% of the headline inflation on a year-on-year basis. In July , it contributed to 17.3% of the 33.4% headline inflation rate. The headline inflation rate was lowest in January when food inflation was also at its lowest. Therefore, reducing food inflation is key to the government’s long-term goal of driving inflation to single digit. It is not strait jacket as various factors, some of which are interwoven, have contributed to food inflation in Nigeria.

    The rising cost of farming and transporting food commodities to the point of sale has affected the final price of food items. For example, the cost of animal feed, veterinary services, energy, fertilizer, seedlings, machinery and spares, and fuel has risen since the removal of the fuel subsidy and the floating of the naira by the government. Insecurity, which has caused many farmers to abandon their farmland, has led to a decrease in farm produce, causing shortages, especially during the dry season. This has encouraged hoarding and profiteering, with food prices skyrocketing. Food availability was also impacted by the increased demand for our farm produce from neighbouring countries as the devaluation of the naira, made them cheaper.

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    It is likely that, in the immediate future, headline inflation will experience more decline but not necessarily on a straight-line basis, because the implementation of the new national policy is expected to increase household spending and raise the cost of producing/offering goods and services as employee wages increase. The Central Bank of Nigeria may be tempted to raise interest rates to slow demand and encourage savings. Also, with the harvest season commencing and the implementation of waivers on tariffs and duties on some essential imported food items, food prices are expected to drop. The recent mobilization of 10,000 agro-rangers by the Civil Defence Corps to secure farmlands across the country, if effective, is expected to encourage people to return to their farms and, in the long run, increase food production in the country. However, the recent fluctuation in the value of the Naira is likely to impact headline inflation in subsequent months.

    While we celebrate the decline in headline inflation on a year-on-year basis and acknowledge government efforts in this regard, it is important to avoid a further decline in the value of the naira because of its multiplier effect. Improving the country’s revenue base and balance of trade by optimizing oil production and diversifying the economy will help achieve this. The government should also provide Compressed Natural Gas (CNG) trailers, lorries, and trucks to ease the cost of transportation farm produce. The government should continue to closely monitor events as they unfold and take proactive measures when needed. It should also adopt a robust monitoring and evaluation mechanism for its policies and programs to ensure objectives are met.

    •Kenechukwu Aguolu FCA,

    Kenerek1@gmail.com   

  • Bumper harvests: Food prices crashes in Kano, Kaduna, Katsina

    Bumper harvests: Food prices crashes in Kano, Kaduna, Katsina

    As bumper harvests are being recorded in parts of Nigeria, the expected multiplier effects on the prices of farm produce have been a mixed-grilled in Kano, Kaduna and Katsina States.

    The News Agency of Nigeria (NAN) learnt that the prices have gone down in parts of Kano State, as well as Zaria and Kafanchan in Kaduna State.

    NAN however gathered that some of the prices have remained high in parts of Kaduna city and Katsina State.

    Investigations by NAN in the three states showed that several factors were responsible for the varying prices of  foodstuffs.

    It was also observed that the development has taken a huge toll on the purchasing power of the ordinary citizens in the three states.

    In Kano State, the prices of food items were coming down as new harvests reached the markets.

    A survey conducted by NAN revealed that the prices of some grains have reduced.

    However, local rice, which is still experiencing a high demand, remains costly, with a bag going for between N150,000 and N170,000.

    A bag of maize was selling for N95,000 as against N105,000.

    Similarly, a bag of millet, which was sold for N90,000, now goes for N80,000.

     A bag of beans that previously sold for between NN170,000 and N180,000 sold at N130,000, depending on the quality.

    A bag of groundnut sold between N150,000 and N170,000 as against N200,000 in July.

    Furthermore, the price of tomatoes has crashed in Kano as onions’ price also witnessed an increase.

    A bowl and a measure of tomatoes that used to be sold for N3,200 and N3,500, have been reduced to N2,400 and N2,000, respectively.

    The survey revealed that a  bag of onions was also going for N70,000.

    A produce dealer, Malam Tanko Idris, attributed the availability of products to bumper harvests.

    Another trader, Abubakar Labaran, also said that the increase in the price of onion was due to the fact that the product was severely affected by the recent rains.

    This, he said,  led to a shortage in supply and a subsequent increase in the prices.

    He added that tomato farming was successful, which led to a surplus in supply and a subsequent decrease in.the prices.

    A customer , Musa Shanono, expressed optimism that the prices of food items would crash further before November.

    “When people don’t produce but consume more, there is bound to be food shortage and the economy will become weak,” he said.

    Another customer, Ibrahim Ali, appealed to the traders to desist from hoarding food in an attempt to make more gains.

    Aisha Ali suggested the use of an adequate storage system to preserve some perishable items like tomatoes during the harvest season, to prepare for their scarcity.

    According to her, the newly-harvested crops have triggered a 30 per cent drop in the prices of foodstuff generally in markets.

    In Kafanchan, farmers have attributed the reduction in the prices of foodstuffs to a bumper harvest from their farms.

    The farmers made this known in separate interviews with the News Agency of Nigeria in Kafanchan.

    Amos Barnabas, a large-scale farmer, said food prices were gradually coming down in the markets because the farmers have started harvesting their crops.

    Ladi Gimba, a tomato seller, told NAN that tomatoes were now cheaper than they were at the beginning of the year.

    According to her, a basket of tomatoes now goes for N22, 000 as against N35000 a few months back.

    She added that a basket of the produce went for N17, 000 this same harvest period in 2023.

    Another farmer, Kambai Modecai, said he expects food prices to further crash in the coming months following the Federal Government’s suspension of import duties on food items.

    Modecai sai that though the import waiver on food items was a welcome development, he believed Nigeria was capable of feeding herself without opening up the borders.

    In Zaria, also in Kaduna State, the prices of agricultural commodities have stabilised in August at major markets within the zone, especially at the Anchau weekly market in Kubau LGA.

    On Aug. 6  and Aug. 13 hybrid maize ( white, red and yellow) was going for N85, 000 for a  100kg bag.

    Also, local maize (white and yellow) was going ₦75,000 per a 100kg bag.

    Similarly, Soybean  was going for  between ₦90000 and 95,000 per 100kg bag, while Sorghum (short kaura and white) was ₦82000 per 100kg  bag.

    Also, Cowpea (white and brown) was being sold for between N160, 000 and 190,000 per 100kg bag.

    Millet (Dauro) was going for ₦86000 per 100kg; Paddy rice ₦60000 per 80kg while milled rice was ₦140000 per 100kg bag.

    On Aug. 7 at the Saminaka market, Lere LGA, the prices of maize has dropped to N73,000 for a hybrid variety while local rice was N70000 for a 100kg bag.

    Paddy Rice was between N58,000 and N60,000; Soybean N90,000, Sorghum N73,000              Cowpea dropped to N140,000 and N160,000.

    However, the prices were slightly higher In Giwa LGA on Thirsday as a 100kg bag of maize was going for  between N88,000 and 91,000.

    Paddy Rice was between N65,000 and N70,000,Soybean was sold at N96,000 while Sorghum was N90,000.

     Millet was going for N90,000,  a  100kg bag of Cowpea Brown N200,000 while white Cowpea was N165,000.

    In Kaduna city and its environs, some Kaduna residents said that the news being peddled on the reduction in prices of food items was not the reality in markets.

    Both the consumers and sellers of food items and other essentials told the News Agency of Nigeria (NAN) that there was no significant change in the food prices.

    Mas’ud Abubakar, who sells food items at the Kasuwan Barci market, said the prices of food items have remained the same for the last two weeks.

    He said a measure of rice was sold at N2400, beans at N2700 while wheat and garri were being  sold at N1600 and N1300, respectively.

    Zahradeen Kabir, another food items seller stated there was an increase in the price of some items, saying he sells a mudu of rice at N2,700 against N2,400 initial price.

    On her part, Amina Mohammed, a consumer, said she had bought a mudu of rice at N2,300 recently against N2400 initial price, saying the difference was too insignificant.

    She said that the prices of beans and corn flour have remained the same, urging the government and other stakeholders to make food affordable for the people.

    In Katsina State, the prices of food items were still high, as the prices for perishable commodities were decreasing.

    A NAN Survey showed that this development was in spite of the fact that the farmers have started harvesting new crops.

    Yet, the prices of some food items remained higher while those of tomatoes and other perishables kept decreasing.

    A check by NAN in some parts of the state like Katsina metropolis, Daura, Malumfashi and Kankia, revealed that the residents were frightened by the situation.

    However, the residents were expecting a reasonable decrease in the prices of food items as the farmers have already started harvesting crops like millet, beans and maize in some parts of the country.

    The survey revealed that a 50kg of local rice now costs about N75, 600 as against the previous N83, 300, and above, depending on the quality of the rice.

    A 100kg bag of beans, which was sold at N200,000 and above before, now dropped to about N168,000, also depending on the quality and the market.

    A measure of beans now sells at a price around N4,200, against the former price of N5,000 and above.

    However, a 100kg bag of millet was sold at a price between N85,000 and N100,000, in many places.

     The survey showed that there was no change in the price as it was sold the same price some months back.

    A 100kg of maize was sold at N92,000, while a measure cost N2,300 and above in many places.

    Malam Yusuf Ibrahim, a family man, described the situation as worrisome, though there was a slight decrease in some places.

    “I recently bought a bowl of local rice and beans at N4,500 and N4,200, respectively, as against N4,900 and N5,100 last month.

    “It is a harvest period, so, the prices of food items will continue falling day-by-day,  as new crops are coming to the markets,” he said.

    On his part, Malam Bala Mai-Doya, a yam dealer in Katsina, said that they were still battling with the higher prices.

    He said, “Even if there is a reduction in the price, it is not as expected.”

    Madam Grace Audu, a restaurant operator in the metropolis, said she no longer sells pounded yam due to the high cost of yam in the market.

    “It has been a long time since I bought yam, because of its high cost,” she said.

    The survey further revealed that, following the frequent rainfall being experienced in the state, the prices of tomatoes have reduced across some markets.

    Malam Abubakar Adamu, a perishables seller at Kasuwan Gwari, told NAN that the price of the different baskets of tomatoes had drastically reduced compared to a few months ago.

    According to him, a big basket of tomatoes, which was sold at about N120, 000 to N150,000 a few months back, was now being  sold from N20,000 to N25,000.

    He added that a small and medium basket that was sold at N40,000 to N50,000, was now N10,000 and  below.

    Adamu attributed the reduction to bumper harvest during the rainy season.

    “It will continue to go down up to the time that everyone can afford to buy,” he averred.

    Malam Abdulrahman Sani, a household leader, said a few months back, he spent about N1,500 to prepare a stew, but now he spends not more than N500 on vegetables to prepare.a soup.

    “We are happy with this development, because most family people found it challenging a few months ago.

    “We hope the prices will keep coming down,’’ he enthused.

    NAN further reports that most of the farmers were predicting bumper harvests and expecting further reduction in the prices of all farm produce.

    The farmers commended the state government for selling 20,000 metric tons of fertilizer to the farmers at subsidised prices.

    The fertilizers were sold at N25,000 per bag of NPK and Urea, which costs N38,000 to N40,000 and above in the markets.

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    The government recruited over 772 extension workers, provided them with motorcycles and other equipment.

    This was to enable them to move around to enlighten the farmers on how to improve their productivity.

    Gov. Dikko Radda said during the launch of the sales of the fertilizers that improving agricultural productivity was another way to fight poverty.

    “Agriculture is our major occupation, that is why we created the Katsina State Irrigation Authority.

    “The aim was to have all- year-round irrigation farming in the state, that will reduce redundancy, and keep everybody busy.

    “Because now we are only doing rainy season farming that lasts for only three or four months, within which people would be out of business for about eight months.

    “You have to add value to what you produce, if you don’t add value, you can’t achieve anything.

    “Achieving or increasing productivity can only be done through proper education of the farmers on how to go about doing farming and consider it as a business, not like normal farming,” he said. (NAN)

  • Drop in food prices excites Nigerians

    Drop in food prices excites Nigerians

    Some residents of Bauchi, Gombe and Dutse have expressed joy over the drop in food prices in recent weeks.

    A check by the News Agency of Nigeria (NAN), in Bauchi, Gombe and Dutse markets, showed that food prices decreased slightly as against galloping inflation in the past months.

    NAN reports that prices of parboiled rice, maize, beans and millet also dropped by about 10 per cent in the markets across the states.

    In Gombe, a 50 kilogramme bag of foreign rice was sold at N66,000 as against N82,000, while a 100kg bag of local variety rice sold at N120,000 as against N130,000.

    Also, a measure of beans was sold at N1,800 as against N1,900, while a 100kg bag of the produce sold at N78,000 as against its previous price of N83,000.

    However, perishable produce showed marginal increase in prices as a medium size basket of tomato sold for between N8,000 and N11,000 as against its old price of N9,500 and N13,000, depending on its quality.

    A bag of onions which previously sold between N13,000 and N20,000 now sold at N12,000 and N18,000, respectively.

    At Wunti market in Bauchi, prices of maize indicated similar decrease as a 100kg bag sold at N58,000; beans N75,000, soybeans N32,000 and sorghum N43,000, as against its old prices of N60,000; N75,000, N80,000 and N50,000, respectively.

    In Dutse grain market, a 100kg bag of local variety rice sold at N140,000 as against N160,000, while millet sold at N68,000 as against N72,000, it sold in the past weeks.

    Similarly, a 100kg bag of maize and sorghum sold at N68,000 as against N72,000, and wheat sold at N80,000 as against N88,000.

    Grain dealers at the markets attributed the development to the Federal Government’s ban on bulk purchase of grain and implementation of proactive monetary policies in the country.

    Alhaji Danjuma Jahun, a rice dealer in Bauchi, said the measures adopted by the government checked hoarding and improved food supply.

    Read Also: ‘Don’t inflate food prices’

    “The reduction in prices is because of the government’s action to ban bulk buying of grain in the markets,” he said.

    Another dealer, Isa Munkaila, said that prices would further go down in view of the improved supply to the markets.

    He called for improved power supply to rice mills to encourage productivity.

    Moreso, Bala Abdullahi and Musa Adamu, who expressed happiness over the development, commended the food palliative programme initiated by the federal and state governments.

    Abdullahi said the programme checked inflation and enhanced food security in the country, adding that prices would further crash as cropping season sets in.

    (NAN)

  • Experts upbeat about gradual reduction of food prices

    Experts upbeat about gradual reduction of food prices

    For the first time in the history of Nigeria the price of a 50kg bag of rice rose to N90.000. Not just rice, the price of every commodity went up by over 300 per cent. Nigeria’s annual inflation rate soared to 33.2 per cent, the highest since March 1996.

    The inflation rate was attributed to the sharp fall in the local currency coupled with the removal of fuel subsidy. Food inflation which accounts for the bulk of Nigeria’s inflation basket continued to climb and hit 40 percent last month, according to recent data released by the National Bureau of Statistics [NBS].

    It could be recalled that early this year, for instance in January/February, the official naira exchange rate plunged to as low as N1,531.00 per a dollar. Before then, the official exchange rate like in 2014 was about N157.OO to 1 dollar, then the price of a 50kg foreign rice was between N8,000-N10,000 depending on the brand.

    However, recently the naira has continued to appreciate to the relief of most Nigerians. As at the time of filing this report, Naira has appreciated to NI,050 to $1. In recent weeks, Naira has gained over 40 percent from the N1,900 it was in mid-February.

    Following a surge in dollar supply by 69.43 percent, the naira strengthened on the official market. This increase occurred a day after the Central Bank raised key interest rates.

    Many Nigerians had anticipated a drop in the prices of food and other commodities following the steady appreciation in the value of naira.

    However, a market survey showed that prices have remained “adamant” to the rise in the value of naira.

    A medium-sized sliced bread priced at N1100 in February now sells at N1,200. The cost of an egg rose from N150 to N200, and the cost of a crate of eggs rose from N3,500 to N4000 within the same time.

    Expectantly, now the price of the dollar and other foreign currencies are coming down, Consumers are expecting that the prices of every product should equally come down. And why not?. Market men and women, even those who did not know the meaning of Dollar were using the high rate of the US currency as an excuse to keep the prices of their wares high.

    The Coalition of Northern Groups (CNG) has expressed its backing for genuine efforts aimed at bolstering and steadying the naira’s value against the dollar, amidst the challenging economic conditions in the country.

    In a statement issued by the national coordinator of CNG, Jamilu Aliyu Charanchi, recently in Abuja, the group acknowledged some commendable steps taken by the Federal Government to tackle economic hardships arising from the instability of the naira against the dollar, which has adversely affected the purchasing power of Nigerians.

    Read Also: ‘Don’t inflate food prices’

    However, expressing disappointment, the CNG noted the reluctance of businesses to adjust their prices in line with the recent improvements in the naira, similar to what occurred when the currency was floated.

    The group lamented the persistence of high prices of goods and services nationwide, despite sustained gains by the naira, even in the black market.

    Emphasising the moral and economic responsibilities of businesses towards Nigerians’ well-being, the CNG urged them to lower prices to enable citizens to fully benefit from the strengthening naira.

    However from all indications, it seems it will take a while for the appreciation of the Naira to reflect on the price of goods. This is due to many factors.

    The Chief Executive Officer of Economic Associates, Ayo Teriba, explained that the impact of the naira on prices exhibited a time lag.

    He noted, “Foods that have been bought at the old exchange rate will still be tied to the old exchange rate”.

    “Whether a month or a quarter, it depends on the duration it takes to order and sell. The effect we should hope to see is that the prices have stopped going up. We call it acceleration.”

    Echoing similar sentiments, President of Nigerian Economic Society, Adeola Adenikinju, highlighted the economic rationale behind the delay in price adjustments.

    Adenikinju stated, “What people have in stock now was purchased at high prices. If they sell at lower prices, they are going to record losses.

    Lending credence to the above, another Economist, Chinedu George Nnawetanma called it Price Stickness.  “Another reason why prices may not come down now is price stickiness. Price stickiness occurs when businesses do not immediately bring down the prices of their goods and services because of the higher cost of their current inventory.”

    Many of the products still in circulation today were imported or produced when the exchange rate of the naira to the dollar was very low. It is usually when they exhaust their old stock and purchase or manufacture new ones that the prices will adjust, all things being equal.

    That way, they do not unusually incur losses and cut into their profit margins by selling at a rate lower than the original cost price.

    Another factor that is keeping the prices of goods and services high is psychology, or the fear that the naira’s gain against the dollar is temporary and the currency will depreciate again in the near future.

    Simply put, if businesses expect the naira to weaken against the dollar anytime soon, they may be hesitant to lower the prices now. This waiting game can further delay the decrease in consumer prices.

  • Nigeria and its rising food prices

    Nigeria and its rising food prices

    There’s no shortage of adverse headwinds that are confronting the future of the country. Ironically, just when you’re about writing the country off sometimes, it staggers to its feet from a prostrate state, resulting from being knockdown by heavy punches unleashed by the actions of self-same people in whose hands its wellbeing has been entrusted.

    Unfortunately, what we have now is a groundswell of cynicism. Indeed, I have never been so deflated over the state of the country like I have been lately and I think a lot of people do. And, I am certain that a preponderance of the dyed-in-the-wool optimists are at the backstage not just sobbing but having a rethink of their position owing to the trajectory of the country. Interestingly, the worst times always demand for hope to bask in the sunshine of better days. So, the current administration needs to start spreading the currency of hope to a bruised nation.

    It was evident that the country was in a tailspin while the past administration was busy masking its many challenges with unexampled spate of borrowings in creating a false impression of stability and hope while corruption at an industrial scale was being executed behind the scene. The vault of the Central Bank of Nigeria (CBN) became a playground of some sort to the privileged. Sad revelations of not a few people caught with their hands in the cookie jar kept coming to light much to the pain and frustration of citizens.

    Without a doubt, a broken economy was bequeathed to a successor. And, it was clear that there wasn’t going to be low hanging fruits- it will certainly involve taking tough and painful path to putting the economy in order. Sadly, so many unintended consequences have been spawned as a result.

     The country can afford to have varied challenges in its plate but, certainly not food related. The current hike in food prices is bad for our national security. The country didn’t need a clairvoyant to tell of a day like this, given the poor position of the agricultural sector and the general mismanagement of the economy. So many factors have conspired to imperil the ability of the country to feed itself which need not be regurgitated. Though not exhaustive, but the issues of insecurity and corruption are serial culprits. The issue of food needs to be taken seriously! 

    For the umpteenth time, having hunger precipitated by hike in food prices added to the pile of other challenges makes the current situation a ticking bomb. The poor are at the receiving end of the challenge with many nudged into the cold embrace of hunger and poverty. It is so, due to the disproportionate spending of their meagre resources on food amidst a purchasing power that has been effectively weakened by withering inflation.

     There is no place for ‘luxury’- spending on other needs like clothes, school books, health has been significantly cut back. In fact, education is braving serious hit as school fees assume a tall order. No heed is paid to the quality of food consume just as the quantity consume in a day has reduced.

    There so much concern on the rising food prices owing to the fact that everyone must eat. It goes without saying, that people get agitated and desperate when food prices goes or begin go beyond their reach making it easy to bait anyone in such state into crime and other social vices. History is littered with examples in proving that food crises have been a veritable source of collective action.

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    High food prices constitute a tad of tipping point not least when it is combined with other deep seated political and socioeconomic issues. Ida Rudolfsen of the Peace Research Institute, Oslo pointed out that food related instability is heralded by  “rapidly increasing food prices in combination with factors such as high rates of unemployment, low economic growth, import dependence, various forms of political mismanagement, and a consumer based urban middle class who have mobilization potential.” The French revolution had other factors as catalyst outside the spike in prices of bread and so also the Arab uprising.

    The current state of affairs should serve as an epoch to rejuvenate and power the economy for collective prosperity while ensuring that food security is made a priority and not footnote. Food security is an important goal for a responsible government. This means, that all the stops must be pulled out in making the agricultural sector serve the needs of the people. Already, the manifestation of desperation is crystallizing with pocket of small protest under the banner of rising cost of food in different part of the country. So, the government has to be circumspect and determined while it works quickly and committedly in keeping  the genie in the bottle.

    •Ungbo writes via abachi007@yahoo.com

  • Food prices ‘down in December’

    Global food prices declined in December, led by sharp decreases for vegetable oils and dairy products, according to the latest Food and Agriculture Organisation(FAO )Food Price Index

    The FAO Food Price Index* (FFPI), according a  statement  by the organisation,  averaged 169.8 points in December, down 5.8 points (3.3 percent) from November with the steepest declines registered in the prices of dairy, vegetable oils and sugar while those of cereals and meat also fell but only slightly.

    For the whole of 2017, the FFPI averaged 174.6 points, up 8.2 percent from 2016 and representing the highest annual average since 2014 although still 24 percent below the 2011 high of almost 230 points. While sugar values plummeted in 2017, dairy and meat prices registered sharp year-on-year increases and those of cereals and oils rose too, albeit more modestly.

    The FAO Cereal Price Index averaged 152.7 points in December, down marginally from November but still up 7.4 percent from December 2016.

  • How to tackle rising food prices, boost production

    How to tackle rising food prices, boost production

    Despite several pro-growth and food security policies and programmes, many Nigerians are malnourished. Reason: skyrocketing food prices. To address the problem, participants at a forum organised by Akindelano Legal Practitioners (ALP), Lagos, advocated the adoption of technologies that will make crops resilient to weather and boost farmers’ income. DANIEL ESSIET reports.

    Policy makers, experts and scientists have canvassed an urgent action to engage more youths in agricultural production to tackle unemployment and food insecurity.

    More than 100 delegates from various sectors gathered in Lagos to discuss approaches to boosting agricultural production.

    Organised by Akindelano Legal Practitioners (ALPs), under the theme: Transforming Nigeria’s agriculture and agro-allied industry, the seminar looked at the challenges  facing the industry and what should be done to overcome them.

    The forum brought together agribusinesses and farmers.

    Participants agreed that the focus should be on resource-efficient technologies that make agriculture a viable source of income. These technologies can include improved irrigation systems, appropriate fertiliser and pesticide application as well as other technologies to make high-value agricultural production possible.

    The Deputy Director-General for Partnerships for Delivery, International Institute for Tropical Agriculture (IITA), Ibadan, Dr Kenton Dashiell , said extreme poverty and hunger would be a thing of the past if farmers and  researchers were innovative in the development of a sustainable and efficient agricultural sector.

    According to him, the stagnant state of commercial seed production is a key reason why yields per hectare are lower here than what farmers outside Nigeria achieve.

    Dashiell said more work was needed to improve seed systems, through encouraging local research institutes and locally-owned seed companies, and installing mechanisms to reach farmers with the “improved” seeds.

    He said the researches on cassava, maize, sorghum and cow peas were great successes for the farmers.

    He said farmers have a chance to boost their food production from researches conducted by the institute.

    Dashiell said: “If we can successfully achieve youth engagement in the agricultural sector, we will be addressing food security as well as the growing youth unemployment.”

    According to him, it was  high time the government and the private sector found ways to engage more youths in agricultural production, which is not possible without the support of leaders.

    Together, he  noted, that IITA  was ready to work with organisations  to find solutions to engage and attract more youth to agriculture; and one of the key solutions is to promote farming as a sustainable means of income, providing youths with financial support, spreading awareness about agripreneurship, and equipping them with best farming technologies.

    Ogun State Commissioner for Agriculture, Mrs. Adepeju Adebajo   said agriculture, and food processing sector should be efficient in terms of logistics, transit costs and infrastructure to be competitive. The proximity to various transportation platforms, according to her, would provide necessary infrastructure facilities and hinterland connectivity, thus ensuring a reduction in logistics costs.

    Mrs. Adebajo  maintained that  growing interest in Ogun  as a  business destination had led to more freight throughput and placed more pressure on its humble infrastructure. So, every  hand is on deck to address  inadequate infrastructure and high logistics costs which could hold back  progress.

    Vice President Corporate & Government Relations, Olam Nigeria, Ade Adefeko, urged farmers to step up efforts  towards improving competitiveness and productivity.

    Adefeko said Olam was investing $150 million in two state-of-the-art animal feed mills, poultry breeding farms and a hatchery to produce day-old-chicks in Nigeria.

    Of the $150 million, $100 million has been committed to building  facilities in Kaduna State while the balance will be invested in an integrated poultry and fish feed mill in Kwara State.

    Besides, there is also an ongoing  10,000-hectare rice farm and mill in Nasarawa State.

    Partner, Business Development and Research Department, ALP, John Delano said the firm’s seminar series was conceived in 2012 as a forum for discourse about commercial, practical and legal issues facing businesses as Nigeria seeks to navigate its way into a modern economy.

    Meanwhile, food prices  has  increased by 19.91 per cent year-on-year in June compared to a 19.27 per cent in May, according to statistics provided by  trading economics.com.

    The study showed that Nigeria has recorded the highest food inflation this year. Since February 2009, costs rose faster for meat, bread and cereals, fish, potatoes, yam and other tubers, oils and fats, milk, cheese, eggs, coffee, tea and cocoa.

    It said food inflation averaged 11.24 per cent from 1996 until this year, reaching an all-time high of 39.54 percent in September 2001 and a record low of -17.50 percent in January  2000.

    Similarly, consumer prices increased 16.10 per cent year-on-year in June, the least in 13 months, compared to 16.25 per cent in May.

    The study also added that consumer prices increased by 16.25 percent year-on-year in May, easing from a 17.24 per cent rise in the previous month.

    In addition, inflation rate fell for the fourth straight month to the lowest in 12 months, led by a general slowdown in prices.

    Yearly core inflation rate was 13.02 per cent, the lowest since March last year.

    Monthly, consumer prices increased 1.88 per cent.

    According to experts, food prices have risen at their fastest pace for more than three years as retailers passed on surging costs.

    Consequently, food retailers and restaurants have been grappling with rising cost from naira’s plunge in value, which makes it more expensive to import.

    It was learnt that cost of living hit high roofs as prices of food became all time astronomical, with increase in price climbing more than 200 per cent of their prices.

    For instance,  a bag  of 50kg  rice still sells for N18,000, despite efforts to bring it down  to  N13,000.

    A food seller, Abia Oyeneka,  lamented that the increase of food prices is beginning to be  worrisome.

    Reacting to this, two  experts, Dr  Paul Ilona and Dr  Olufemi Oladunni  called  for measures  to contain inflationary pressure with food price prices rising at their fastest pace in more than two years.

    According to them,price increases are the main economic problem in the country.

    Ilona, Country Manager, Harvest Plus Nigeria, called for intervention to tame inflation.

    Others steps, he mentioned, include price controls, especially on  staple food items, such as rice and garri.

    Oladunni, Acting Executive Director, Agricultural and Rural Management Institute (ARMTI), Ilorin, Kwara State, noted that increased demand for food items was pushing up prices.

    He  stressed the need to  encourage more Nigerians to invest in agriculture to contain inflation.

    According to him, the  whole issue of food price management is essentially a question of ensuring adequate supplies and removing bottlenecks in distribution.

     

  • Eid-il-Fitri: NCWS, cleric advise traders against hike in food prices

    The National Council of Women’s Societies (NCWS) has advised traders to desist from arbitrary increment in the prices of food items and household commodities for the next week’s Eid-il-Fitri.

    Its Director of Mobilisation in Omu-Aran, Irepodun Local Government Area of Kwara, Mrs Moradeyo Ajiboye, gave the advice during a sensitisation the society organised for traders.

    Ajiboye said she did not understand the traders’ fondness for ‘‘unjustifiable increase in the prices of consumables and household items in most markets, especially, at festive periods.’’

    According to her, the advice became imperative as Eid-il-Fitri, the Muslim end of fasting, will be holding in a few days’ time.

    She advised the traders to stop the habit of capitalising on festivities and sacred periods to review the prices of their wares upward without any justification.

    The director said that such an act, which was without approval from the constituted authorities, needed to be promptly checked by relevant government agencies.

    The News Agency of Nigeria reports that food items such as rice, beans, yam flour, milk, sugar, vegetables, fruits, groundnut oil, tomatoes and pepper have always been arbitrarily hiked during festive periods.

    Ajiboye said most traders had bought some of the items now being sold at higher prices at cheaper prices before.

    Also, Chief Missioner, Nasirullahi-li-Fathi Society of Nigeria (NASFAT) in Omu-Aran Alhaji Mustapha Abdusalam, described price hike by traders as an act of sabotage against Allah’s commandment.

    “I wonder why these consumables will now be subjected to arbitrary price hike due to the Ramadan and Eid-il-Fitri,” he said.

    Abdusalam asked why some locally produced consumable items that had nothing to do with the exchange rate of the naira to the dollar were being subjected to arbitrary increase.

    “Can you imagine an unjustifiable increase in the prices of garri and yam flour due to the recent fall in the value of the naira as against the dollar?

    “Even producers of sachet water and vegetable sellers are now capitalizing on the fall of naira to hike the price of their commodities,’’ he said.

    He urged Nigerians, especially traders, to always transact their businesses in accordance with the Islamic injunctions so as to attract Allah’s favour.

    “It is only by so doing that we can gain the desired eternal salvation,” he said.The National Council of Women’s Societies (NCWS) has advised traders to desist from arbitrary increment in the prices of food items and household commodities for the next week’s Eid-il-Fitri.

    Its Director of Mobilisation in Omu-Aran, Irepodun Local Government Area of Kwara, Mrs Moradeyo Ajiboye, gave the advice during a sensitisation the society organised for traders.

    Ajiboye said she did not understand the traders’ fondness for ‘‘unjustifiable increase in the prices of consumables and household items in most markets, especially, at festive periods.’’

    According to her, the advice became imperative as Eid-il-Fitri, the Muslim end of fasting, will be holding in a few days’ time.

    She advised the traders to stop the habit of capitalising on festivities and sacred periods to review the prices of their wares upward without any justification.

    The director said that such an act, which was without approval from the constituted authorities, needed to be promptly checked by relevant government agencies.

    The News Agency of Nigeria reports that food items such as rice, beans, yam flour, milk, sugar, vegetables, fruits, groundnut oil, tomatoes and pepper have always been arbitrarily hiked during festive periods.

    Ajiboye said most traders had bought some of the items now being sold at higher prices at cheaper prices before.

    Also, Chief Missioner, Nasirullahi-li-Fathi Society of Nigeria (NASFAT) in Omu-Aran Alhaji Mustapha Abdusalam, described price hike by traders as an act of sabotage against Allah’s commandment.

    “I wonder why these consumables will now be subjected to arbitrary price hike due to the Ramadan and Eid-il-Fitri,” he said.

    Abdusalam asked why some locally produced consumable items that had nothing to do with the exchange rate of the naira to the dollar were being subjected to arbitrary increase.

    “Can you imagine an unjustifiable increase in the prices of garri and yam flour due to the recent fall in the value of the naira as against the dollar?

    “Even producers of sachet water and vegetable sellers are now capitalizing on the fall of naira to hike the price of their commodities,’’ he said.

    He urged Nigerians, especially traders, to always transact their businesses in accordance with the Islamic injunctions so as to attract Allah’s favour.

    “It is only by so doing that we can gain the desired eternal salvation,” he said.

  • High food prices

    High food prices

    •This is an emergency the government should tackle

    WE are not entirely surprised by the separate findings by Central Bank of Nigeria (CBN) and United States Department of Agriculture (USDA) that the average Nigerian household spends between 65-70 percent of their income on food. Aside bringing again to the fore, the cold reality of declining incomes among Nigerians as a result of the high cost of food and other household items over the last couple of years, the reports have somewhat validated other findings about what is generally known to be the intolerable rate of inflation, the record number of the population said to be living below the poverty line (currently estimated at 70 percent), and, the poor macro-economic policies and how these impinge on our agricultural production and output.

    If it seems a rehash of the old tales about the failure of our agricultural practices, the finding particularly by the US agency that “limited government support to farmers over recent years, rising cost of farming inputs, and insecurity as limiting private efforts at increasing agricultural productivity” is no doubt, instructive.

    That is however not all. The report fingers the devaluation of the naira for the decline in the purchasing power and consumption in general; the corollary of which is the upsurge in the demand for Nigerian grains in countries around the Sahel region by 40 percent – said to be the country’s highest agricultural export level over the last 15 years”– a development it sees as boding ill for the country’s food security. In the same vein, it came hard on the Federal Government for abandoning its strategic grains reserve policy due to paucity of funds just as it blames the development for “discouraging farmers from increasing production”. The report specifically notes that: “Farmers are also sustaining huge losses because the Government of Nigeria (GON) has stopped purchasing corn supplies for strategic reserves, and operators in the poultry sector, who are principal consumers, are either downsizing or closing operations”.

    None of the issues highlighted in the report, we daresay is new. Many of them have not only been acknowledged by successive administrations, there have been some attempts to tackle them, albeit with limited success. However, aside being a call to action, to underscore the fierce urgency of the moment, it seems to us that there could not be a better opportunity than one presented by the current economic downturn to take a fresh look at the problems with a view to finding enduring solutions.

    Again, the point is that the problems hampering our agriculture as indeed our quest for food security are by now well known. While the chief of the problem is the abysmally low productivity fostered by the adoption of poor technologies and the terribly inadequate infrastructure situation, the poor policies promoted by successive administrations have contributed in no small measure to creating the current situation of near total dependency on food imports. And, as Nigeria has only just experienced, a country that depends on imports for food merely sets its citizens up for the pang of hunger whenever there is turbulence in the macro-economy.

    The real challenge therefore consists in redressing this imbalance through a holistic policy that offers the farmer all the support that he can get – fiscal, and infrastructural – to modernise farm practices and to make him competitive; to guarantee fair, equitable and indeed, competitive prices for farm products. This implies the government taking deliberate steps to protect the local farmer from the influx of foreign, often highly subsidised imports.

    Above all, the government should lead in harnessing and bringing to par, the sector’s value chain for long term sustainability and to get local entrepreneurs to embrace more aggressively, the challenge of food processing.

  • FEC approves panel’s measures to reduce food prices 

    FEC approves panel’s measures to reduce food prices 

    The Federal Executive Council  has approved some measures to reduce food prices.

    The Council took the decision based on the interim report submitted by the food task force it set up last week on how best to address the rising cost of food items across the country.

    Agriculture Minister Audu Ogbeh briefed State House correspondents at the end of the Federal Executive Council (FEC) meeting.

    According to him, the committee identified that the hike in cost of food  is not caused by shortage but high cost of transportation.

    He noted that food items were moved across Nigeria by heavy trucks, which run on diesel. The price of diesel has gone up.

    The government has decided to start using railway wagons to transport food items.

     Ogbeh said: “We had a committee set up last week to look at the issue of hike in food prices and we submitted an interim report today. Our work is almost rounded off.

     “We identified the causes of food price increases. The good thing is that there is no real shortage of food. There is food but the prices are a bit too high and Nigerians are groaning under the pain.

     “One of the things we found out is that the cost of transportation is becoming extremely high, especially because most of our transportation is by road and diesel prices have gone up and trucks are finding it difficult to move from place to place at old prices.

     “So we considered the following alternatives: using railway wagons along the current railway network. As we did before when we moved cattle from North West to Lagos, we brought down the cost and avoided the multiple taxation on transporters by local governments which delay movement.

     “We have decided to work with the state governments and the police to reduce delays. We are going to adapt what they have in Ivory Coast. Trucks carrying foods are given labels. In fact, in Ivory Coast, they cannot be stopped for more than 10 minutes anywhere.

     “Even if something serious has happened, the security agencies will follow them to their destinations and come back to investigate whatever has happened.

     “Finally, we shall be looking into our reserves, if in the next few days, the situation persists, to see what we can bring out to lower the prices because another bumper harvest will be coming up again at the end of March.

     “There is really no starvation in the land. The other factor is what you know already. There is a lot of pressure on Nigerian food from West, North and Central Africa. Our food production is very robust and we are doing pretty well.”

     The Council also approved measures to boost all-year round local production of tomatoes.

     The government will reduce tariffs for importation of greenhouse equipment for production of tomatoes.

     To discourage importation of tomato paste, the Council also approved increase of tariffs on imported tomato paste.

     Trade and Investment Minister Okechukwu Enelamah said: “Council approved a set of measures to boost production and attract investment into the Nigerian tomato sub-sector. This is a sector that has lots of farmers, in a state like Kano alone there are 75,000 farmers and so it is important to encourage them.

     “And so we approved a set of measures to encourage them both in local production as well as to attract more investment into tomato farming, processing all the way, the value chain to how tomato gets to our tables.

    “These measures will include things we are doing to make sure we plant tomato round the year, things like green house equipment, making sure that they can come in without any barriers or duties. They also include the use of both tariff and non tariff measures to address the issues Nigerians are most concerned about, which is the issue of dumping, issues around quality and the standards of what we consume.

    “We also approved a set of measures that will boost local production in terms of financing seeds and all the other things.”

     “Let me say that the most important thing about this set of policies is that in our approach we are going to be working with the stakeholders to actually implement the polices. So, we are going to set up an inter-ministerial committee that will work with the private sector and with different stakeholders to make sure that the implementation of the policy itself is not only done transparently but also robustly to ensure that we achieve the desired objective which is to make sure that we become self-sufficient in tomato within the next one or two years,” he said.

    He added: “The issue of tariff to discourage import, dumping was very central to the approval of the memo. Most definitely, we are not coming down. We are going to go up. We will be announcing what the new tariffs are but clearly there is a new set of tariff that will discourage dumping. You can take that to the bank. To boost local production we are interested in all the input factors that will boost production.

     “On financing, the Central Bank has been working with the tomato farmers already. I am confident that the measure taken will boost production. The minister of Science and Technology is working with us in terms of both the production methods and equipment

    “In terms of the things that will boost year round production of tomato, notably the green house equipment, the duties on those will be zero so that the equipment will come in. Before now the duty on green house equipment is 20%. So, we are removing that to make it possible for people to grow tomato all-year round.

    “We are going to restrict import of finished tomato products that can be produced locally, so all the products that people bring in, in terms of paste and powder and all those things will be restricted because they can be manufactured locally.

    These things will be rolled out right away; these are policies for this year. We are going to use tariffs and levies as well to discourage imports of tomato paste and those levies will be used to develop the local industry just like we have done in the sugar and cement industry.

    “We are also going to restrict the importation of finished products from other ECOWAS countries where products are dumped then transported across our borders, making sure those risky products don’t go through our land borders, if you want to import them you have to go through the sea.

    “We are going to make sure that in terms of incentives which goes back to production, the Nigerian Investment Promotion Commission will make sure that the production of tomato gets its pioneer status We are also working on financing from the CBN. In terms of financing of production, we are also working with the ministry of Agriculture on seedling quality and so on.”