Figures released last week by the National Bureau of Statistics (NBS) in its Selected Food Price Watch for June 2024 showed that the public outcry over crushing food inflation in the country is not baseless.
For instance, NBS said the prices of tomatoes, beans, and yam rose by about 300 percent in June 2024 from their previous prices in the corresponding period of 2023. These are staple food items, and the astronomical increase in their prices suggests that many Nigerians are struggling to survive the food crisis.
According to NBS, the average price of 1kg of yam tuber increased by 295.79 percent on a year-on-year (YoY) basis from N510.77 in June 2023 to N 2,021.55 in May 2024. On a month-on-month basis, it increased by 52.87 percent from N 1,322.36 in May 2024 to N 2,021.55 in June 2024.
Also, the average price of 1kg beans (brown, sold loose) stood at N2,292.76, indicating a rise of 252.13 percent in price on a YoY basis from N651.12 recorded in June 2023; and a 14.11 percent rise in price on a month-on-month basis from N2,009.23 in May 2024.
The price of tomatoes (1kg) increased year on year by 320.67 percent from N547.28 in June of 2023 to N2,302.26 in June 2024. On a month-on-month basis, the average price of this item rose by 55.59 percent from N1,479.69 in May 2024.
The average price of 1kg garri (white, sold loose) went up by 181.66 percent on a year-on-year basis from N403.15 in June 2023 to N1,135.51 in June 2024.
The report also indicated that the price of 1kg Irish potatoes grew by 288.5 percent to N2,423.27 in June 2024 from N623.75 in June 2023.
Notably, Nigerians continue to complain about the cost of rice. NBS in April said the average price of 1kg rice (local, sold loose) was N1, 399.34 from N546.76 recorded in April 2023.
Predictably, the result is food insecurity compounding the situation of many already embattled Nigerians. NBS figures last year showed that Nigeria’s annual inflation rose strikingly in September 2023. In October 2023, the country’s headline inflation rate rose to 27.33 percent from 26.72 percent recorded in September. The figure marked the 10th consecutive rise in the country’s inflation rate last year.
The result was an alarmingly deteriorating cost-of-living crisis in the country. Economic analysts blamed the grim situation mainly on naira depreciation, higher food and energy prices, and logistical costs, among others. What has changed? This is food for thought.
It is important to ask what the federal, state and local governments have done, and what they are doing to save Nigerians from hardship. They are expected to urgently find solutions to the cost-of-living issues in the spaces they govern.
Regardless of frenetic efforts by the Federal Government to ensure food availability and security through policies and programmes such as the Anchor Borrowers Programme (ABP), Nigerians have continued to wallow in hunger and deprivation. The horrid situation has prompted the House Committees on Nutrition and Food Security and Agricultural Production and Services, Agricultural Colleges and Institutions and Finance launch comprehensive probe into what went awry with the government’s intervention toward making food available for Nigerians, NICHOLAS KALU and JULIANA AGBO report
Earlier this month, the House of Representatives launched a probe into the alleged misuse of government interventions and agricultural funding by ministries, departments and agencies (MDAs), schemes and programmes of the Federal Government outside the Ministry of Agriculture and Food Security.
In the wake of the food crisis currently experienced by Nigerians which the government is frantically trying to grapple with, the urgency of such intervention cannot be over-emphasised.
The Committees on Nutrition and Food Security and Agricultural Production and Services, Agricultural Colleges and Institutions and Finance were mandated to conduct a comprehensive investigation into the issue during plenary that day.
The Committees were expected to report within four legislative weeks for further legislative action on the matter.
The House’s resolutions followed the adoption of a motion titled “Alleged Mismanagement of Government Agricultural Initiatives and Funding by Departments, Agencies, and Government Programmes Outside the Federal Ministry of Agriculture and Food Security” sponsored by Chike John Okafor.
Of significance among such initiatives to boost agriculture, which the House is to probe, is the Anchor Borrowers Programme (ABP), for which the sum of N1.1 trillion was disbursed. The programme was mired in controversies right from its inception.
For some, it seemed strange that such a programme mainly to boost agriculture was introduced and domiciled in the Central Bank of Nigeria (CBN) and had nothing to do with the Ministry of Agriculture.
The ABP is an initiative of former President Goodluck Jonathan’s administration and formally launched by former President Muhammadu Buhari’s administration in November 2015 in an effort to boost agricultural production, improve foreign exchange and reverse Nigeria’s negative balance of trade on food. It was handled by the CBN.
Initiated under the preceding Goodluck Jonathan administration, Buhari formally launched the ABP in November 2015. Its broad objectives, according to the CBN, are four-fold; increase banks’ financing to agriculture, reduce the national food import bill, create a new generation of innovative and “smart” farmers, and deepen financial inclusion, moving smallholders from subsistence to commercial farming.
Under the programme, loans were to be disbursed to farmers, who were beneficiaries, through Deposit Money Banks (DMBs), Development Finance Institutions (DFIs) and Microfinance Banks (MFBs), all recognised as Participating Financial Institutions (PFIs).
The programme guidelines made available by the CBN indicated that farmers captured under the initiative are smallholder farmers cultivating cereals (rice, maize and wheat,among others), cotton, roots and tubers, sugarcane, tree crops, legumes, tomato and livestock.
Farmers who benefitted from the loans were expected to repay their loans by taking their harvest to ‘anchors’ that pay the cash equivalent to the farmer’s account. However, the programme, like many others failed to live up to expectations and left so much to be desired in the wake of allegations of mismanagement and corruption.
Failure of this programme to live up to expectations has been tied to the allegation that genuine farmers were not involved in the anchor borrowers’ programme.
This is because a lot of genuine farmers who are into cereals production had voiced that they were not carried along as portfolio farmers took over the programme.
The farmers alleged that the portfolio farmers gathered as a team, while some went individually as a registered anchor borrower, approached the bank to take the money and end up not farming, but rather go to rice farms in Nigeria to purchase rice paddy from smallholder farmers who are into rice production to pay back their loans.
It was also alleged that the portfolio farmers also went to neighbouring rice producing countries to purchase paddy for display which Nigerians witnessed as the largest rice pyramid in January 2022.
Recall that former President Buhari, at the time, noted that rice in the Nigerian market was expected to fall as the country launched 13 pyramids of rice paddy.
Despite the launch of the 13 rice pyramids and the launch of maize pyramids in Katsina and Kaduna states during President Buhari’s administration, Nigeria continues to witness a surge in the price of the commodities.
A top official with the government noted that the ABP was an avenue to make Nigeria self-sufficient in rice, maize and wheat production, but all were not achievable due to diversion of funds, lack of proper database of real farmers and lack of proper supervision by the CBN.
This alone led to the scarcity and high cost of cereals experienced in Nigeria today.
“Today, the cost of feed for poultry has gone off the roof so much so that people can’t afford to buy egg due to high cost of maize,” he said.
The official noted that the opaqueness of the initiative was supposed to turn the tide as far as agriculture is concerned, coupled with the raging hunger in the country.
However, the present situation and growing concern of high cost of food prompted the House to address the situation.
The House had expressed worry over the growing food scarcity and malnutrition in Nigeria and the alleged mismanagement of agricultural funds intended for agricultural development in the country. It also noted that the Federal Government, through various schemes and interventions in the past eight years has spent more than N2 trillion in funding agricultural interventions with the view of making food available for millions of Nigerians. It said due to the alleged mismanagement, misapplication of funds and abuse of the programs, Nigeria is still experiencing food scarcity and malnutrition.
The motion had read: “The House is aware of the reports and allegations of abuse, mismanagement, and misapplication of government intervention funds earmarked for agricultural development and food security initiatives in Nigeria through the Central Bank of Nigeria (CBN) through the Anchor Borrowers Program (ABP) disbursed about 1.12 trillion Naira to 4.67 million farmers involved in either maize, rice or wheat farming through 563 anchors.”
The House is worried that the agricultural sector plays a crucial role in ensuring food security, improving nutrition and supporting the livelihoods of millions of Nigerians, and any abuse of the programmes and schemes of the government drastically affects millions of innocent citizens.
At the inception of the President Bola Tinubu’s administration, faced with the dire economic situation at the time, and in a bid to shore up funds in the face of economic challenges, launched a probe to recover the money disbursed for the programme.
It was reliably gathered that relevant security agencies had gotten a Presidential directive to recover loans from the Federal Government Anchor Borrowers Programme amounting to over N500 billion.
According to sources, it was gathered that out of N1.1 trillion of funds sunk into the programme, about N575 billion have so far been recovered.
Among those to be probed as far as the mandate is concerned are banks, farmers, individuals and other financial institutions, among others.
The source said that many of the banks failed to account for the funds which passed through them for various beneficiaries of the loan.
“Most of the banks have not accounted for the funds given to them for the programme. Many of them got money they did not disburse and never returned such money to the Government. So they have to account for those. The banks have been contacted and some of them have expressed their willingness to cooperate with the probe.
“As it is, the Presidency has given marching orders that the loans be recovered by relevant security agencies for the Federal Government.
“Among those who would be involved in the probe are the farmers, individuals, banks, companies, microfinance banks and credit and thrift services, among others.
“The loans, which amounted to about N1.1 trillion has about N575 billion paid so far.
In the coming days, more details would come to light over the matter, but for now, it is confirmed that a go-ahead has been given for the money to be recovered.
“It is not out of place for the Presidency to give such orders to security agencies on issues of national importance. It is not unusual for the president to authorise security agencies to carry out such tasks.
“As I said, many of the banks did not account for the loans which were in their custody but they did not disburse.
“They have been written to in respect of the probe and some have expressed their commitment to work with the security agencies on the matter,” a top security official in charge of coordinating the probe had said.
Following this development at the time, there was growing tension over the outcome of the probe, but since then, nothing has been heard as the agencies supposed to pursue it have been silent over it.
As Nigerians continue to battle with the problem of food shortage, they also continue to wonder when the report of the probe would be made known to show seriousness on the part of the government in ensuring accountability and food security.
A former House of Assembly member in Osun State, Olatunbosun Oyintiloye, has urged President Bola Ahmed Tinubu to ignore those criticising him for the suspension of tariffs, duties and taxes on the importation of food grains and other products to the country.
Oyintiloye said it is either those criticising the policy are benefiting from the economic challenges the masses are facing, or are planning to push the masses against the President by causing unrest in the society.
The APC chieftain, who made the remarks, while speaking with reporters yesterday in Osogbo, said Nigerians were hopeful and were eager to enjoy the dividends of democracy as quickly as possible.
He, however, said the global economic crises, coupled with unavoidable policies introduced by the current administration, were mitigating against Renewed Hope Agenda of the President, “but steps taken in recent time to revamp the economy are beginning to yield desired results.”
Indications are that respite may be coming the way of Nigerians as prices of food stuff which has hit the rooftops may become relatively cheap all thanks to the 150-day duty-free import policy for food commodities by the federal government. Ibrahim Apekhade Yusuf in this report examines the issue.
For the average Nigerian out there, hunger has literally become a metaphor of their existence because food, which is the most essential need before shelter, has become one huge expensive luxury they can hardly afford.
Time was when an average Nigerian family of six persons could easily afford a well-nourished meal with as little as N3000 for a sizable pot of rice, stew and beef. That same amount cannot comfortably feed one person at a sitting today.
“Rice, unarguably the most popular item on the family menu is now gold, too expensive to even contemplate these days,” lamented Mummy Blessing, a food vendor in one of the media outlets in Lagos, where this reporter usually visit to fulfill his cravings for piping hot rice with pepper sauce, assorted beef and all but not anymore!
But how did Nigeria get to this sorry past? One might be tempted to ask. The answer, if you may, is flying in the air!
The foregoing anecdote summarises the existential realities for most Nigerians who continue to groan over rising food prices.
While attempting a prognosis of the cause of the lingering food crisis, Dr. Bolade Agbola, a member of Faculty at the Pan African University, Lagos in an interview with The Nation recently lamented that funding is a big challenge within the agric ecosystem.
He said: “If you look at our budget, you will find out that we are not spending up to 4% of our budget on agriculture. That is not enough. And it is the budget on agriculture that we are going to use to fund research stations, even irrigation with water resources.
“There is no way you can achieve much with that meager budget. One of the things that showed up with the scarcity of tomatoes this year is the lack of irrigation. Because tomatoes we eat in May, June, July are produced in, planted in January, February, March. Because it is 90 days plus 90 days harvest. So if you don’t have enough of it, then you have to shorten your supply, and the price goes up. So that speaks to our irrigation. How are you irrigating our farms?
“Of course, we say, oh, everybody should grow wheat in December and all the rest. We started growing wheat, and less tomatoes, and then as a shortcut. Nigeria has no business in not feeding itself. We can do dry season farming, we can do rain-fed farming, and all the rest. So that’s the challenge we are facing.”
The key thing is for the government to increase spending in the sector. Nigeria food supply chain, Agbola stressed, “Is suffering a lot, in every sphere. Take farm mechanisation, for instance, we are 153 out of 155 countries. That is the gap. That is why we cannot feed ourselves. That is why we have problems. So, what do we do to move up that ladder? If we do something to move up that ladder, then we will start feeding ourselves. And that means public-private sector collaboration.”
The don who also lamented that oil is responsible for 90% of the nation’s revenue and funding, as everybody wants to be in oil, or associated oil thus leaving little or nobody to get involved in farm labour. “Nobody wants to work on the farm. Because there’s a perception that working in other sections of the economy is more lucrative. And you know what I mean? They are all economists. So we need to lean in. And there’s a lot of rent in the oil industry, and that’s why everyone wants to go there. So if we don’t solve that one, we can’t solve this problem.”
Upbeat, Agbola who is also the Managing Director/CEO of LAM Agro Consult Limited, observed matter-of-factly that, “In France, the agri-sector is successful not because of technology or business. It’s because of the organisation of the stakeholders throughout the value chain. They are organised. They work together. They share experiences together. They work together with the government to access the markets, the domestic market, European market or outside, exportation, international market.”
Crux of the matter
Nigerians have battled high food prices since President Bola Tinubu announced the removal of petrol subsidies and also floated the naira so that the value of the Nigerian currency can be determined by market forces in 2023.
Thus the policies led to an increase in the prices of basic food, with 50kg of rice increasing in price from about N20,000 to over N80,000 in a year.
This is just as the rise in the cost of poultry products led to a spike in the prices of eggs in recent times. An egg which hitherto sold at an average cost of N80-100 last year, currently sells for N250 and above, depending on its size.
The implication is that the continuous increase in the prices of goods and services over the past one year has made the majority of the crops and livestock farmers to either close shop or drastically cut down on their production quantity amidst inflationary pressure, insecurity and extreme weather conditions ravaging rural communities.
Interestingly, last year, the president had declared a state of emergency on food insecurity with the hope of addressing the increase in food prices, yet, food inflation has persisted.
According to the National Bureau of Statistics (NBS), inflation rose to 33.95 per cent in May 2024 from 22.41 per cent in May last year. Food inflation followed a similar trend, climbing to 40.66 per cent in May 2024 from 24.82 per cent last year in May.
Things generally came to a head when retailers of essential food items went overboard as they indiscriminately increased the prices of their wares without let or hindrance thus further exacerbating the already deplorable situation for the consumers who had been badly bruised by the growing economic hardship in the land.
A breakdown for 2023 showed that $245.7m was disbursed for food import in January, $163.6m in February, $268.4m in March, $240.9m in April, $238.3m in May and $206.1m in June.
In July 2023, the apex bank disbursed $58m for food importation, $95.3m in August, $119.9m in September, $132.4m in October, $235.9m in November and $126.2m in December.
Comparatively, the figure was $644,000 or 23 per cent less than a $2.7bn disbursed by the apex bank for food importation.
In the April 2024 food inflation report, the NBS said the increase of 15.92 per cent to 40.53 per cent was caused by price surge of, “millet flour, garri, bread, wheat Flour prepacked, semolina (which are under bread and cereals class), yam tuber, water yam, cocoyam (under potatoes, yam and other tubers class), coconut oil, palm kernel oil, vegetable oil, etc (under oil and fat), dried fish sardine, catfish dried, mudfish dried (under fish class), beef head, beef feet, liver, frozen chicken (under meat class), mango, banana, grapefruit (under fruit class), Lipton tea, Bournvita, Milo (under coffee, tea and Cocoa Class).”
“On a month-on-month basis, the food inflation rate in April 2024 was 2.50 per cent which shows a 1.11 per cent decrease compared to the rate recorded in March 2024 (3.62 per cent).
The fall in food inflation on a month-on-month basis was caused by a fall in the rate of increase in the average prices of yam, water yam, Irish potatoes (under potatoes, yam & other tubers class), beer, local beer (under tobacco class), Milo, Bournvita, Nescafe (under coffee, tea, and Coco Class), groundnut oil, palm oil (under oil and fats class), egg, fresh milk, powdered milk, tin milk (under milk, cheese, and eggs class), soft drinks e.g. Malt Guinness, Coco-cola, etc, spirit (local production), Chelsea, Seaman Schnapps (under Spirit Class), Wine and Fruit e.g., Water Melon, Pineapple, Banana, Pawpaw, etc.
“The average annual rate of Food inflation for the twelve-month ending April 2024 over the previous twelve-month average was 32.74 per cent, which was a 9.52 per cent points increase from the average annual rate of change recorded in April 2023 (23.22 per cent).”
Worried by this development, the federal government fashioned out a raft of policy measures including using the instrumentality of the law, going all out to the open markets to confront the shylock rent-seekers and unscrupulous businessmen with the Federal Competition and Consumer Protection Commission (FCCPC) officials in tow embarking on raids and seizures nationwide.
While all these steps were being taken, it did little to mitigate the situation as the soaring prices of foods didn’t seem to abate at all, so much so that many Nigerians had to prevail on the president to allow massive food importation to cushion the rise in food prices as a stopgap measure.
Enter 150-day duty-free import window for food commodities
When it seemed all hope was lost, the federal government in its own wisdom decided to heed the cries of Nigerians as it announced a fortnight ago, a 150-day duty-free import window for food commodities and caused the suspension of duties, tariffs and taxes for the importation of certain food commodities including maize, husked brown rice, wheat and cowpeas through land and sea borders.
An elated Mr. Bayo Onanuga, the president’s spokesman who first broke the news said the government will now allow duty-free import for the private sector for 150 days.
By implication, the government is planning to import maize and wheat equivalent to approximately 2.5 million bags (100kg) of each commodity to ameliorate the shortages in the country and force down the prices in the market.
While giving a cursory review of the template for the implementation of the 150-day duty-free window policy, the Minister of Agriculture and Food Security, Senator Abubakar Kyari said the government was persuaded that the new food import policy will lead to a drastic reduction in the prices of basic food items, whose prices have increased astronomically in recent times.
Not unmindful of fears over the quality of the food imports, Kyari explained that the government understands concerns and would do everything to not compromise on that.
“The government assures that all standards will be maintained to ensure the safety and quality of food items for consumption,” he added.
He stated that the government will engage with relevant stakeholders to set a GMP and purchase surplus food commodities to restock the National Strategic Food Reserve and also ramp-up production for the 2024/2025 farming cycle.
He listed other strategic measures to be embarked upon in the coming months to also include, a continued support to smallholder farmers during the ongoing wet season farming through existing government initiatives, strengthening and accelerating dry season farming nationwide.
Other measures involve embarking on aggressive agricultural mechanisation to reduce drudgery, lower production costs, and boost productivity, as well as collaborating with sub-national entities to identify irrigable lands and increase land under cultivation among others.
He further explained that a “Renewed Hope National Livestock Transformation Implementation Committee” has been inaugurated to develop and implement policies prioritising livestock development in alignment with the National Livestock Transformation Plan, and a ministry of Livestock Development has been created.
The minister said over the next 14 days, in close collaboration with the Presidential Food Systems Coordinating Unit (PFSCU) and the Economic Management Team (EMT), they will convene with respective agencies to finalise the implementation frameworks and ensure that the information is publicly available to facilitate the participation of all relevant stakeholders across the country.
“The success of these measures hinges on the cooperation and collaboration of all relevant MDAs and stakeholders,” Mr Kyari added.
“My team and I will work swiftly and diligently to actualise these crucial policies, ensuring food security for everyone in the immediate term while continuing our strategies for long-term interventions to address underlying causes and ensure sustainable and resilient food systems in Nigeria,” he said self-assuredly.
Knocks for the duty-free policy
If the federal government thought it would get a pat on the back for what it considered a game-changer of a policy, it had another thing coming as a welter of criticisms met with the idea in some quarters.
One of those who took the federal government to the cleaners is Dr. Akinwunmi Adesina, President of the African Development Bank (AfDB), who slammed the decision, describing it as depressing.
Adesina spoke as a guest at the Council of Anglican Provinces of Africa retreat in Abuja, while giving a keynote address on ‘Food Security and Financial Sustainability in Africa.”
Miffed by the federal government’s plan of action, he argued that Nigeria cannot continue to depend on food importation to keep prices stable and that doing so would undermine the nation’s agriculture strategy.
Rather, he said food production should be prioritised in order to maintain price stability, ease pressure on the foreign exchange front, and generate employment.
He said, “Nigeria’s recently announced policy to open its borders for massive food imports, just to tackle short-term food price hikes, is depressing.
“Nigeria cannot rely on the importation of food to stabilise prices. Nigeria should be producing more food to stabilise food prices while creating jobs and reducing foreign exchange spending, which will further help stabilise the Naira,
“Nigeria cannot import its way out of food insecurity. Nigeria must not be turned into a food import-dependent nation.”
Pressed further, Adesina noted that Africa constitutes nearly a third of the over 780 million people worldwide who are hungry, thus emphasising the critical role of agriculture in diversifying economies and transforming rural areas, where more than 70 percent of Africa’s population resides. “It is clear therefore that unless we transform agriculture, Africa cannot eliminate poverty,” he insisted.
Adesina noted that Africa holds 65% of the world’s remaining uncultivated arable land, which is crucial for feeding an estimated 9.5 billion people by 2050. Therefore, what Africa does with agriculture will determine the future of food in the world in the long run.
“Essentially, food is money. The size of the food and agriculture market in Africa will reach $1 trillion by 2030,” he stated.
Another perspective on duty-free import policy
In his commentary entitled, Dilemma of a nation in food crisis: Will Tinubu’s open border, tax free approaches solve the problem? Adetola Odusote said, “The free import window will also encourage agricultural reforms: While addressing immediate food shortages, this measure will also give the government some time to implement and support longer-term agricultural reforms and initiatives aimed at boosting domestic production and achieving food self-sufficiency.
“Overall, the 150-day duty-free window is a short-term intervention aimed at stabilising food prices and ensuring food security while longer-term solutions need to be developed and implemented. For me, five months would not be enough because it will take nothing less than five years for the food gap to be met in Nigeria.”
While offering strategic solutions to the lingering food insecurity in Nigeria, Odusote who is a Corporate Communications and Public Affairs Consultant, said, addressing food insecurity in Nigeria requires a multifaceted approach that considers the complex socio-economic, environmental, and political factors involved.
“Number one is to set up machinery for the improvement of agricultural productivity by encouraging farmers to embrace the use of modern farming techniques, such as precision agriculture, improved seed varieties, and efficient irrigation systems. Governments at all levels also need to create access to inputs: Ensure that farmers have access to quality seeds, fertilizers, and pesticides,” he said.
Expatiating, he said, “The government should as a matter of urgency begin to strengthen infrastructure that would enhance transportation networks: Improve rural roads and transportation networks to facilitate the movement of goods from farms to markets. Encourage public private partnership in the provision of storage facilities, build and maintain adequate storage facilities to reduce post-harvest losses.
“Lastly the federal government should begin to foster international partnerships to access funding, technology, and expertise, leverage international aid and support to implement large-scale food security programs and projects.”
Implementing these strategies requires collaboration among government agencies, non-governmental organisations, private sector stakeholders, and the international community. A coordinated and sustained effort is essential to address the root causes of food insecurity and ensure long-term food security for Nigeria.
Kudos for policy
Expectedly, there has been some groundswell of support for the policy, which majority of the respondents agree will go a long way in cushioning the effect of the soaring food prices and thus make food relatively cheap and even affordable to the average Nigeria.
The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, NACCIMA, and Centre for the Promotion of Private Enterprise, CPPE, have also said the federal government’s move is a step in the right direction.
Reacting to the development, NACCIMA, Dele Oye in a statement on Monday said the government’s decision to suspend duties on food imports is a strategy mitigating severe food inflation currently impacting Nigerian households.
He said the government should engage stakeholders in the value chain to prevent Nigeria from turning into a dumping site for importers.
“This initiative represents a significant step towards mitigating the severe food inflation currently impacting Nigerian households.
“However, while we applaud these measures, it is imperative that the government immediately engages with stakeholders across the agricultural value chain.
“This engagement is crucial to ensure that Nigeria is not turned into a dumping ground for commodities where we already have reasonable self-sufficiency. Protecting local investments and sustaining the growth of our agricultural sector must remain a priority,” NACCIMA said.
On his part, the Director-General of CPPE, Muda Yusuf, said Nigeria’s soaring food inflation which stood at 40.66 percent in May 2024 required an emergency solution.
“Food inflation, at over 40 percent, is perhaps the biggest challenge the country is currently faced with, especially from a social perspective.
“The implications of surging prices of food are quite scary. It is an emergency that demands an emergency response.
“It is in this context that I will agree with the decision of the government to explore the trade policy option to tackle the problem.
“In my view, it is a step in the right direction. This, of course, is without prejudice to current efforts to boost domestic food production.”
For many Nigerians, operating from the lower rung of the socioeconomic ladder like Mummy Blessing, the federal government decision can only be meaningful if it will help to get food on the table and not just another avenue to make billionaires out of the already super rich, but privileged few with connections in high places, both in and around the corridors of power.
Pray, is Mummy Blessing pleas necessary under the circumstances? Time will tell.
Members of the House of Representatives yesterday resolved to sacrifice 50 per cent of their salaries, for six months, to aide in addressing the economic hardship, especially hunger in the country.
With Speaker Tajudeen Abbas putting the monthly salary of members at about N600,000 each, the 360 members will be contributing about N108 million monthly, for six months, to the government for the purchase of food items to be distributed to Nigerians.
This followed debate by members on a motion of urgent public importance by Ibrahim Isiaka (APC, Ogun), on the need to halt the proposed nationwide protest, maintain peace, eschew violence and open the windows for meaningful engagement with governments at all levels to address burning issues.
Isiaka said while the citizens have the constitutional right to peaceful assembly and protest to address their grievances, the House presents with a humble plea, a plea for reason, understanding, and unity in the face of adversity.
He noted that maintaining peace and engaging in constructive dialogue with the government is crucial for the resolution of issues facing the nation.
When put to voice vote, majority of members voted in favour of the motion.
Deputy Speaker Benjamin Kalu earlier proposed an amendment to a motion appealing to young Nigerians planning a protest, saying members should consider sacrificing 50 per cent of their pay to address hunger in the land.
In proposing the amendment, Kalu reminded members that the House took a similar decision during the COVID-19 era and it worked well for the country.
Abass praised members for their resolve to sacrifice part of their salaries to address hunger in the land, just as some members asked the Executive to also make sacrifices in line with what the lawmakers had done.
Vice President Kashim Shettima yesterday inaugurated the Presidential Food Systems Coordination Unit (PFSCU) as part of efforts by the administration of President Bola Ahmed Tinubu to tackle hunger and hardship in the land.
This followed a presentation by the Technical Assistant to the President on Agriculture, Office of the Vice President, Marion Moon.
According to a statement issued by Senior Special Assistant to the President on Media and Information, Office of the Vice President, Stanley Nkwocha, the new initiative is one of the ways the presidency is engaging with states, development partners and other critical stakeholders in the ongoing efforts to address the soaring prices of commodities and general food insecurity in the country.
Addressing members of the group comprising governors, cabinet ministers and representatives of development partners, Senator Shettima said, “The nation is facing a rare food security crisis and the sooner we come to terms with the reality, the better.
“Food insecurity endangers the very basis of our democratic experiment and this is why all hands have to be on deck. We are in a food security crisis but it also provides us the opportunity to re-engineer and reposition the nation on a firmer footing.”
Outlining the mandate of the PFSCU, the Vice President said the unit was not created to usurp the functions of the Ministry of Agriculture, noting that the urgency and seriousness of the matter at hand requires the ideas and resources of all stakeholders.
Sen. Shettima made reference to the Green Imperative Programme, a government-catalyzed, private sector-driven, agricultural industrialization programme, as one initiative which the PFSCU must work assiduously to activate and operationalize.
He stated that with improved farming practices, improved seeds, use of fertilizers, Nigeria’s agricultural productivity could be turned around for the better.
Earlier, state governors in the committee outlined plans to modernise farming practices, increase crop yields, and transform Nigeria into a self-sufficient food producer.
Governor Bassey Otu of Cross River said the state is looking forward to feeding the country, adding that his government must modernize agriculture to feed the population.
“We are an agrarian state, and we have stepped up our game,” Governor Otu noted.
On his part, Borno State Governor, Babagana Zulum, emphasised the need for a coordinated approach, citing low productivity and population growth as a major challenge to the nation’s food security drive.
He called for investment in commercial agriculture, improved funding, and enhanced security for farmers.
Also, Jigawa State Governor, Umar Namadi, highlighted the state’s potential to achieve food security.
“All that is needed is the political will to drive the process. Our lands are very fertile. In Jigawa, there are places where we are yielding ten tonnes per hectare of rice. There are so many places like that. As of today, our average in Jigawa State is about 12.56 per hectare. We are on the right course. What we need is sustained political will,” the governor explained.
For his part, Niger State Governor, Mohammed Bago, proposed his state as a pilot for the President’s food security initiative.
In the pursuit of food security and poverty reduction, Nigeria faces formidable challenges exacerbated by a confluence of factors. Despite committed efforts aligned with Sustainable Development Goals and the Zero Hunger Challenge, the landscape is marred by rising insecurity, exorbitant transportation costs, climate change impacts, and volatile naira exchange rates. These dynamics not only strain agricultural productivity but also threaten livelihoods and national economic stability. DANIEL ESSIET reports that the path forward demands strategic resilience and innovative solutions to safeguard food access, promote sustainable agriculture, and ensure a resilient future for all Nigerians
Innocent Mokidi, a Nasarawa-based agro-entrepreneur and CEO of Brote Urban Vegetable Farm and Processing Limited, stands as a shining example of success among young farmers. His journey from poultry farming to thriving in vegetable and soybean cultivation is deeply inspiring. By embracing new agricultural practices and diversifying crops, Mokidi has not only enhanced his own livelihood but also become a beacon of hope for fellow farmers in Nigeria. His successful soybean farming significantly boosted his income, enabling him to effortlessly cover his children’s tuition fees and expand into other profitable ventures. Today, he manages over 100 acres of maize and soybean fields, setting a high standard in agricultural entrepreneurship.
Recently, Mokidi highlighted the daunting challenges facing the agricultural sector. A sharp rise in the prices of crucial inputs like diesel, electricity, seeds, fertilizers and pesticides has posed significant obstacles for farmers. He noted that soaring diesel costs have particularly escalated transportation expenses, creating a ripple effect throughout the supply chain and burdening farmers with higher operational costs for transporting their products. “The cost of transporting agricultural commodities has gone over the roof and is really affecting the prices of agricultural goods in the market. A 30 tonne-truck from Kaduna to Lagos goes for nothing less than N1.5milion per trip as against N800, 000 in 2023. This is as a result of an increase in the price of diesel that now costs N1, 600 per litre as against N800 last year. Another factor is the high cost of vehicle spare parts. Farmers have not been able to farm this year as a result of the high cost of diesel and tractor spare parts.
“The present cost of ploughing a hectare of farm land is 60,000 as against 30,000 in 2023. This has really affected the production level of farmers this year in the sense that a farmer that cultivated 10 hectares late last year will be forced to cultivate three hectares this year. This means that though demand is high, supply of farm commodities is reduced, which has in turn driven up food prices,” he lamented.
He continued to express concern over the exorbitant costs of farming, emphasising how these financial burdens have compelled many farmers to scale back their operations. This reduction in farming activities has led to a decrease in the availability of agricultural commodities, subsequently driving up market prices. This troubling trend initiates a vicious cycle where diminishing output and escalating costs negatively impact both farmers and consumers alike. “Farming inputs keep spiralling due to the depreciation of the naira and the high rate of dollar. Most materials used in production of farming inputs are all imported. Take for instance the cost of 50kg NPK fertiliser in 2023 was N26, 000. The same 50kg of fertiliser is now sold for N43, 000. The removal of petrol subsidy also contributed immensely to the high increase in farming inputs, because materials for the production or finished products have to be transported from one location to another and these are all built into the cost of production of inputs. In 2023, a litre of diesel was selling for N800; now that same litre is going for N1, 200. We can’t implement mechanisation without using diesel to operate our tractors,” he said.
He warned, however, “If proper attention is not given to the rising cost of farming inputs, between 2024/2025, we are going to be facing a real food crisis. The facts are all there for all to see. What will happen is higher demand and lower supply which will result in an increase in price of foodstuffs.”
In the face of these challenges, the resilience and determination of farmers such as Mokidi are commendable. Their ability to adapt, innovate, and persevere in the face of adversity underscores the crucial role of agriculture in Nigeria’s economy and the importance of supporting farmers in overcoming the obstacles they encounter.
Eupepsia Place Limited’s Team Lead, farmer Ogbole Samson, stands as a pioneering figure in revolutionising Nigeria’s agricultural sector through determination and modern farming techniques. An early adopter of hydroponic methods, which allow plants to thrive in water-based nutrient solutions rather than soil, Samson has demonstrated how these innovations can be harnessed in any greenhouse or nursery, regardless of the season, with the right technology. By focusing on higher-return crops, Samson has significantly increased productivity on his farm. He also plays a crucial role in educating fellow farmers on hydroponic techniques, offering them the opportunity to operate in weather-resistant farming environments unlike those in traditional agriculture.
Samson’s ultimate goal is to achieve food self-sufficiency in Nigeria and reduce dependence on imported vegetables. His farm cultivates a diverse range of produce, including strawberries, showcasing both personal success and the potential for young farmers to enhance the country’s agricultural output. His vision extends to inspiring more youth to embrace agribusiness, ensuring that initiatives like his continue to drive positive change in the sector.
In light of climate change and urban land scarcity, innovative and sustainable farming practices like hydroponics present promising solutions. However, the persistent challenge lies in the high costs associated with adopting these methods. Previously, establishing a hydroponic farm cost between ₦500,000 to ₦2,000,000, depending on the size and materials of the structures and greenhouses. Presently, the entry cost for a quality structure starts at ₦3,000,000 and continues to rise. Hydroponic farming necessitates significant investments in infrastructure and equipment, with fluctuations in exchange rates further impacting the costs of importing essential parts.
He noted: “We depend on imports for input; the fall of the naira will by default affect the cost of farming operations. There is also the reality of climate change which as a nation we have not adequately prepared for. The fact that we do not have a price floor for our farmers put them at the mercy of reality. There is global inflation and Nigeria as a nation is not immune; and with the reality of our everyday life, fuel subsidy removed, and lots of other policies. This will also affect the farmers who are a big chunk in the community.”
Over the past four years, the agricultural sector has grappled with a dramatic surge in input costs, with prices of essentials like diesel, electricity, seeds, fertilizers, and pesticides skyrocketing by 200 to 250 percent. Consequently, production levels across various crops—vegetables, fruits, and oilseeds—have seen declines ranging from 45 to 65 per cent. Farmers are increasingly calling for enhanced security measures to address the pervasive insecurity in farming communities. They argue that improving security is essential for creating a conducive environment where agricultural activities can thrive. Among those advocating for these measures is Raymos Guanah, former Senior Special Assistant to the Deputy Senate President and CEO of Raymos Guanah Farms Limited, based in Delta State. His agribusiness encompasses rice, pineapple, plantains, bananas, cassava, okra, vegetables and fish farming, highlighting his commitment to diverse agricultural production despite the challenges.
In an interview with The Nation, Guanah highlighted the detrimental effects of insecurity on agriculture. He emphasised that the escalation of attacks by armed groups on farmlands, coupled with the prevalence of kidnapping, has created an atmosphere of terror and fear in the farm areas. The climate of insecurity, according to him, has significantly impacted food security and contributed to the rising costs of farming. His words: “One of the major drivers of the spiralling cost of farming is insecurity. Farmers are killed and robbed.”
Guanah’s concerns resonate with the broader struggles of farmers nationwide, emphasising the critical necessity for immediate action to tackle insecurity in rural areas. Recent reports reveal alarming statistics: farmers in the North-West region alone have paid approximately N139.5 million in levies to bandits between 2020 and 2023. A detailed study titled ‘Levies or Lives – The Dilemma of Farmers in Northern Nigeria,’ conducted by SBM Intelligence, underscores the severity of the situation, noting that bandits imposed a total of N224.9 million in levies on farmers during this period. These figures highlight the dual challenge faced by farmers—economic extortion and threats to personal safety—that urgently require effective solutions. “All these make things difficult for those who depend on agriculture for their livelihood and worsen food availability and affordability in the country. Across the north in the past four years, militants have made a fortune through various levies imposed on agrarian communities running into millions, which have exacerbated food insecurity and made people poorer,” the report said.
The report further highlights that the escalation of banditry and armed attacks has severely disrupted livelihoods and essential service distribution across the Northwest region, affecting states like Kaduna, Katsina, Zamfara, and parts of Jigawa. These security challenges not only threaten the safety of residents but also undermine agricultural activities and the overall economic stability of these areas. Addressing these issues is crucial to restoring normalcy and fostering sustainable development in the affected communities. “For farmers in these areas, working on their farms poses a dual risk: either they attempt to harvest their crops with hopes of earning a living, or they pay hefty ransoms to save themselves from abductors,” it said.
The regime of illegal levies and taxes not only undermines the livelihoods of farmers but also perpetuates a vicious cycle of violence and instability. It’s deeply concerning that farmers are compelled to surrender a portion of their hard-earned harvest to armed bandits. Zubairu Abdulra’uf, a Community leader in the Birnin Gwari Emirate of Kaduna State, revealed that farmers in the area have paid a staggering amount—approximately N400 million—in levies and taxes to these criminal groups. He further noted that across Birnin-Gwari Local Government, the total extortion could amount to between N300 million to N400 million. Additionally, farmers are coerced into giving up two bags out of every 10 bags of assorted grains as part of these imposed taxes, exacerbating their already significant financial burdens.
His remarks underscore a deeply troubling reality where farmers are left to fend for themselves against external threats due to inadequate protection or support from authorities, indicating a rise in insecurity in the region. Recently, former Sokoto State Governor Attahiru Bafarawa spoke out against the activities of bandits in Northern Nigeria. He disclosed that bandits had forced him to abandon his expansive 10,000-hectare farmland in Kaduna State. Bafarawa highlighted that the escalating prices of food items across the country are directly linked to the pervasive banditry in the area. Moreover, he lamented that decisions on which farms can be cultivated in his community are dictated by these criminal elements. Bafarawa’s remarks serve as a stark reminder of the severe impact of insecurity on agriculture, posing threats not only to farmers’ livelihoods but also contributing significantly to food insecurity and inflation in Nigeri a.
Dr. Victor Iyama, President of the Federation of Agricultural Commodity Association (FACAN), has also expressed grave concerns over the escalating insecurity facing farmers. He suggested that farmers should be constitutionally empowered to carry firearms for self-defence if the government fails to fulfil its duty to provide security. Iyama highlighted the dire situation in the agricultural sector, noting that extensive farmlands are being abandoned due to threats from bandits. He cited incidents where people have been abducted on their way to farm, and cattle have been stolen by rustlers. These security challenges not only disrupt farming activities but also increase production costs as farmers face constant threats and harassment.
The FACAN President emphasised the potential consequences of this insecurity on food production, warning of a possible decrease in agricultural output if farmers continue to be unable to work on their lands safely. He also expressed concerns about farmers losing interest in farming altogether due to heavy taxes imposed by bandits, further exacerbating the agricultural crisis in affected regions.
Guanah also noted: “The level of insecurity in the country is largely responsible for the challenge of food insecurity we face today. When farmers don’t have an enabling and peaceful environment to cultivate their crops, the implication is that the country’s volume of food production will be negatively affected. Agricultural activities are mostly concentrated in rural areas, and the rural areas are not safe now. Villagers are being attacked, killed and kidnapped, and these are the people that produce the food we eat.”
Head of operations, Anastasia Marie Nig. Ltd, Sunday Etimensi, noted: “If you are lucky your farm land is not grazed, the herders will wait for you at the point of harvest.
Young agro entrepreneur, Rishama Aboki Solomon also known as Prince the Farmer, expressed deep concern over the current state of the agricultural sector, which is rapidly deteriorating. Solomon, who runs Blessed Frarigo Enterprise in Karu, Nasarawa State, identified the rising cost of farm inputs as the main cause of this decline. He lamented: “The primary culprit behind this decline is the escalating cost of farm inputs. Compounding this issue are factors such as inflation, insecurity, a lack of innovation within the industry, and ineffective implementation of government policies aimed at supporting agriculture.”
Richard Mbaram, Director General of the Feed Nigeria Summit Secretariat, has underscored significant challenges impeding efforts to enhance food security in Nigeria. Despite the Federal Government’s commitment to achieving food and nutrition security in alignment with Sustainable Development Goals and the Zero Hunger Challenge, Mbaram highlighted several persistent obstacles.
Among these challenges are insecurity, high transportation costs, climate change, and the instability of the naira exchange rate. Mbaram noted that fluctuations in the naira exchange rate contribute to increased costs of both imported and domestically produced agricultural inputs. This economic volatility adds another layer of complexity to the agricultural sector’s endeavors to achieve food security and alleviate poverty in the country. Addressing these multifaceted challenges is crucial for sustaining efforts aimed at improving food security and economic stability in Nigeria.
He noted: “Presently, there are varied dynamics contributing to upend market realities in the agricultural sector. Factors contributing to this trend include insecurity, high transportation costs, climate change, and the instability of the naira exchange rate. Insecurity, such as conflict and political instability, disrupts supply chains particularly for agricultural inputs, leading to scarcity and higher prices.”
The Chief of Staff at OCP Africa, Caleb Usoh, underscores the pivotal role of the agricultural sector in driving economic prosperity. He however, highlighted existing challenges that impede its transformation into a competitive, environmentally friendly, self-sufficient, and export-oriented industry. He noted: “Most of the agriculture inputs are imported and like every imported product they are affected by the high FX rate. The immediate action by the government to alleviate the problem of cost of input could be a temporary suspension of duties and taxes on importation of inputs.’
The Co-founder & Managing Director of Lancaster Farms, Engr. Patrick Obidoyin, has been actively advocating for the maintenance of moderate levels of food inflation. He believes that the agricultural sector can consistently perform well by continuously innovating farming practices, improving crop varieties, and adopting essential technologies to meet the increasing demands for diverse and nutritious food supplies. Despite the significant domestic food production, Obidoyin attributed the escalating costs of farming to unfavourable weather conditions, security issues, and high import prices. These high costs of farming inputs not only contribute to inflation but also pose a risk to food security. He emphasised, “This is primarily due to the overall inflation in the cost of inputs in Nigeria and the additional pressure on farmers caused by security challenges.”
As the agriculture outlook delivers a mixed outlook for farmers, with economic challenges and continuing high production costs cited as the main dampeners, the Country Director, Sasakawa Africa Association (SAA) Nigeria, Dr. Godwin Atser noted that the prevailing record of low yield per hectare nationwide is making it difficult for farmers to unlock the gains in productivity and income that will lead to economic and social development gains. He pointed out, “Yield per hectare is low. This leads to low annual production of key crops such as cassava, maize, rice, and cowpea. Government needs to invest in extension and research so that improved technologies can get to farmers. Sasakawa Africa Association is willing to support the government of Nigeria in this direction. Last month we commissioned Rice Value Chain Development Centres valued at about $800,000 in Nasarawa state to address the constraints to rice transformation.”
Nigeria and the rest of Sub-Saharan Africa spend around $50 billion a year importing food and agricultural products. This was the report during Private Sector Consultations on Post Malabo Agenda held virtually. It was held to foster a collaborative approach to African Union’s Comprehensive Africa Agriculture Development Programme (CAADP) Post-Malabo Agenda development process.
Through the USAID Bureau for Resilience and Food Security (RFS), Policy Link provides essential support to CAADP and incubates development solutions that can be scaled through USAID Missions in other countries.
The Senior Manager- Regional Trade and Policy at USAID Policy Link, Kudzai Madzivanyika, provided an update on the state of agriculture in Africa.
She highlighted that the productivity of both land and labour in Sub-Saharan Africa is low. Crop yields in this region are significantly lower compared to other regions, with the average yield across Africa being half that of India and one-fifth of the yields in the US.
Her words: “Crop yields in Sub-Saharan Africa are very low relative to other regions, with the average across Africa being half that of India and one-fifth of the yields in the US. 40 per cent of Sub-Saharan Africa’s population still live below the international poverty line of $1.90 per day.”
Madzivanyika also emphasised that Sub-Saharan Africa generates less than half of the global average amount of agricultural value added per person working in agriculture.
Declaration’s commitments but that the analysis of the situation has fallen short, emphasised the importance of robust interventions.
She highlighted that recommendations from the forum will form part of the suggestions towards improving continent wise agricultural performance, and addressing existing challenges on the road to eradicating hunger and malnutrition in Africa.
International expert Elise Bizou Ahouanmenou emphasised the importance of member states meeting the requirements of the Malabo Declaration, which was adopted by African Heads of State and Government in 2014.
The declaration outlined ambitious goals to enhance agricultural development and revolutionise the sector for mutual prosperity.
With the declaration’s term coming to an end in 2025, she highlighted the urgent necessity for private sector involvement to bolster ongoing initiatives and pave the way for future advancements under the Post-Malabo Agenda.
Others also discussed the imperative to develop strategies that align with the Malabo Declaration to promote agricultural growth.
Despite significant efforts over the past two decades, Africa has not fully met the ambitions goals outlined in both the Maputo (2003) and Malabo (2014) Agendas.
CAADP has been instrumental in guiding agricultural transformation efforts, providing a framework for collaboration among African Union institutions, regional bodies, and member states. The upcoming Post-Malabo Agenda development process presents an opportunity to address existing challenges, leverage emerging trends, and outline a new agenda that fosters sustainable agricultural development, food security, and economic growth.
The Post Malabo Agendadevelopment process will involve stakeholder consultations, research and analysis, design and drafting, and political mobilization across the continent, culminating in the declaration of a new agenda and commitments by the Heads of State and Government (HOSG) by the end of January2025. This process will consider the review of ECOWAS Agricultural Policy (ECOWAP) for West Africa to ensure consistency, relevance, and complementarity while also avoiding duplication of efforts.
The Imo State Government has taken proactive steps to address food insecurity and high food prices in the state.
Commissioner for Agriculture and Food Security, Chief Cosmas Madugba, disclosed this on Friday in Owerri.
“We are concerned about the challenges faced by our farmers and the high cost of food in the markets. We want to assure our people that we are doing everything possible to address these issues.
“The government has procured 15,000 bags of maize, worth ₦1 billion, for distribution to Imo workers.
“The distribution has been ongoing for two weeks. This is part of our efforts to make food available and affordable for our people,” Madugba explained.
He added that the government was providing farmers with free bags of fertilizer, insecticides, herbicides, and other farm implements to support their work.
“We want to encourage our farmers to produce more and make Imo State self-sufficient in food production,” Madugba said.
The Commissioner assured farmers that the government is committed to supporting them, acknowledging their challenges and predicaments. “We know their pains and we are ready to support them,” he assured.
He encouraged farmers to be proud of their work and assured them that the government is willing to provide their needs. “We want our farmers to know that they are doing a great job and we appreciate their efforts,” Madugba said.
According to him, the government is determined to make food available and affordable for the people of Imo State, despite the challenges posed by the removal of fuel subsidies.
“We are determined to make Imo State a food-sufficient state, despite the challenges,” Madugba emphasized.
The statistics is scary. The last four years have witnessed the exit of over 325 firms in the food and beverage sector. No thanks to the harsh economy and inconsistent policies. Besides, challenges such as multiple taxation, poor infrastructure, unstable power supply, and forex crisis have also hindered growth in the sector.
Speaking at the association’s 15th National Delegate Conference with the theme, “Rescuing the Food Beverage and Tobacco Industry from the Danger of Collapse – Role and Expectations of Stakeholders,” in Asaba, the Delta State capital, the National President of the association, Comrade Jimoh Oyibo, said the theme was quite significant because of recent happenings in the country and, particularly the ease of doing business.
He said: “We have seen and heard of some corporations departing our nation as a result of the difficult operating environment. It is said that if the flood sweeps away the baobab tree, the iroko tree should become wary.”
On the state of the nation and economy, Oyibo, who was returned as the President, after a keenly contested elections, said from the last National Delegate Conference in 2021, the nation had witnessed a lot of upheavals occasioned by the political climate and various policies of government, from the naira redesign to the uncertainty of the electoral process and the abrupt removal of subsidy on petrol as well as the floating of the naira.
He said: “The incessant epileptic nature of our electricity is a result of numerous collapses of the national grid. The unrelenting corruption among most of our political class is an albatross that the nation has found so difficult to shake off.
“The stories about trillions of naira embezzled or misappropriated make one’s head spin. Many economists have expressed wonder at how this continues to exist with the amount of malfeasance uncovered daily.
“One can hardly pick up a newspaper and not be regaled with such tales, yet no one has been adequately punished to serve as a deterrent to others.
“Thus, the culture of impunity and blatant disregard for the rule of law by public office holders and law enforcement agencies is rampant, and this has trickled down to our youths whom we are quick to tout as the leaders of tomorrow. It is rather shameful that this is the kind of legacy we are leaving for them.”
The labour leaders also noted that despite the various fiscal and monetary policies implemented by this government aimed at addressing various economic challenges, none had yielded the desired result.
“For a country generally acknowledged as the Giant of Africa and blessed with numerous natural resources, notably crude oil, to have degenerated into a level that it now has the awful distinction of being the world capital of poverty, with 71 million people living in extreme poverty today (World Poverty Clock 2023) and a total of 133 million people classed as multidimensionally poor, according to National Bureau of Statistics (NBS) data, is disgraceful.’’
He recalled that a couple of weeks ago, the NBS announced that the inflation rate increased to 33.69 per cent in April, this year, adding that this was 11.47 per cent higher compared to the rate recorded in April, last year.
“Likewise, the food inflation rate in April 2024 was 40.53 per cent, which was attributed to an increase in food prices.
On subsidy removal, Oyibo observed that when it had been argued by the apologists of the government that the removal had resulted in increased revenue for the government, “we only hear about trillions of naira disbursed by the Federation Accounts Allocation Committee (FAAC), but it has not had any significant positive impact on the citizens’’.
“Rather, it has led to an increase in inflation and more worrisome is the fact that we recently experienced long fuel queues, which we hoped would have been addressed by the subsidy removal.
“Typically, no one has been questioned or sanctioned for taking Nigerians through this avoidable agony. That is why we can be certain that this will reoccur since there is no consequence for bad behaviour.”
Speaking further, he said, but for the protest by labour, which resulted in the National Assembly calling for a halt in implementation of the proposed increase in electricity tariff, the government would have gone ahead to inflict more pain on Nigerians.
“The idea that the increase would affect only a section of the populace is a flawed argument because we know the spiralling and domino effects such increases have on the purchasing power of the people.
“With increased electricity bills, Nigerians shall be forced to make difficult decisions about other essential expenses such as food, transportation, and medical care.This will negatively impact their standard of living and overall quality of life.
“It is crucial that the government considers the concerns of its citizens and ensures that its policies do not disproportionately affect the most vulnerable members of society,” he added.
On the debate over minimum wage, Oyibo pointed out that it was so difficult to comprehend the thought process of political elites, stressing that the implementation of various monetary policies had reduced the purchasing power of workers. who now struggle to meet their basic needs.
“It is, therefore, disheartening that the Federal Government after the hype about providing a living wage for Nigerians and involving the stakeholders portending seriousness, we were offered a measly N60,000 as the new minimum wage.
“It makes one wonder whether the government deliberately irks the labour movement with these actions. It is hoped that the government will take seriously the threat of labour to call out workers if a reasonable offer is not placed on the table,” he added.
