Economy
Tinubu Rolls Out Initiatives to Crash Rising Prices of Food
By Modupe Gbadeyanka
President Bola Tinubu has announced some initiatives he intends to use to bring down the rising prices of food in the country, declaring a state of emergency in food security.
Addressing newsmen in Abuja on Thursday, the Special Adviser to the President on Special Duties, Communications and Strategy, Mr Dele Alake, said his boss wants to ensure citizens never go to bed hungry again.
He said his government would invest in agriculture and provide security for farmers to enable them to work on their farms without fear.
“As a direct and immediate response to this crisis, a number of initiatives will be deployed in the coming weeks to reverse this inflationary trend and guarantee future uninterrupted supplies of affordable foods to ordinary Nigerians,” the President said through his spokesman.
He stated that fertilizers and grains would be immediately released “to farmers and households to mitigate the effects of the subsidy removal.”
According to him, this should make food available to many in Nigeria, adding that efforts would be made to stabilise food prices.
“We shall create and support a National Commodity Board that will review and continuously assess food prices as well as maintain a strategic food reserve that will be used as a price stabilisation mechanism for critical grains and other food items,” he added.
Read the full statement below:
As a hands-on- leader who follows developments across the country every day, Mr President is not unmindful of the rising cost of food and how it affects the citizens. While availability is not a problem, affordability has been a major issue for many Nigerians in all parts of the country. This has led to a significant drop in demand, thereby undermining the viability of the entire agriculture and food value chain.
Accordingly, in line with this administration’s position on ensuring that the most vulnerable are supported, Mr President has declared, with immediate effect, the following actions:
- That a state of emergency on food security be announced immediately, and
- That all matters pertaining to food & water availability and affordability, as essential livelihood items, be included within the purview of the National Security Council.
As a direct and immediate response to this crisis, a number of initiatives will be deployed in the coming weeks to reverse this inflationary trend and guarantee future uninterrupted supplies of affordable foods to ordinary Nigerians.
As with most emergencies, there are immediate, medium- and long-term interventions and solutions…
In the immediate term, we intend to deploy some savings from the fuel subsidy removal into the Agricultural sector, focusing on revamping the agricultural sector.
In an earlier meeting with Agriculture Stakeholders (today), we drafted a memorandum of partnership between the government and the individual stakeholder representatives that encompasses the decisions taken and actions proposed from our engagements.
The immediate intervention strategies are as follows:
- We will immediately release fertilizers and grains to farmers and households to mitigate the effects of the subsidy removal.
- There must be an urgent synergy between the Ministry of Agriculture and the Ministry of Water Resources to ensure adequate irrigation of farmlands and to guarantee that food is produced all year round.
As a country, Mr President has made it clear that we can no be comfortable with seasonal farming. We can no longer afford to have farming down times.
- We shall create and support a National Commodity Board that will review and continuously assess food prices as well as maintain a strategic food reserve that will be used as a price stabilisation mechanism for critical grains and other food items.
Through this board, the government will moderate spikes and dips in food prices.
To achieve this, we have the following stakeholders on board to support the intervention effort of President Bola Ahmed Tinubu: The National Commodity Exchange (NCX), Seed Companies, National Seed Council and Research institutes, NIRSAL Microfinance Bank, Food Processing/Agric Processing associations, private sector holders & Prime Anchors, smallholder farmers, crop associations and Fertilizer producers, blenders and suppliers associations to mention a few.
- We will engage our security architecture to protect the farms and the farmers so that farmers can return to the farmlands without fear of attacks.
- The Central Bank will continue to play a major role of funding the agricultural value chain.
- Activation of land banks. There is currently 500,000 hectares of already mapped land that will be used to increase the availability of arable land for farming which will immediately impact food output.
– Mechanization and land clearing- The government will also collaborate with mechanization companies to clear more forests & make them available for farming
- River basins- there are currently 11 river basins that will ensure the planting of crops during the dry season with irrigation schemes that will guarantee continuous farming production all year round to stem the seasonal glut and scarcity that we usually experience.
- We will deploy concessionary capital/funding to the sector, especially towards fertilizer, processing, mechanization, seeds, chemicals, equipment, feed, labour, etc.
The concessionary funds will ensure food is always available and affordable thereby having a direct impact on Nigeria’s Human Capital Index (HCI). This administration is focused on ensuring the HCI numbers, which currently rank as the 3rd lowest in the world, are improved for increased productivity.
- Transportation and Storage: The cost of transporting Agricultural products has been a major challenge (due to permits, toll gates, and other associated costs). When the costs of moving farm produce are significantly impacted- it will immediately be passed to the consumers, which will affect the price of food- the government will explore other means of transportation, including rail and water transport, to reduce freight costs and, in turn, impact the food prices.
As for storage, existing warehouses and tanks will be revamped to cut waste & ensure efficient preservation of food items.
- We will Increase revenue from food and agricultural exports. As we ensure there is sufficient, affordable food for the populace, we will concurrently work on stimulating the export capacity of the Agric sector.
- Trade Facilitation: Transportation, storage and export will be improved by working with the Nigerian Customs, who have assured us that the bottlenecks experienced in exporting and importing food items as well as intra-city transportation through tolling, will be removed.
These are some of the immediate interventions this government will put in place to tackle this crisis.
Principally, one of the major positive outcomes of these interventions will be a massive boost in employment and job creation.
Indeed, agriculture already accounts for about 35.21 per cent of employment in Nigeria (as at 2021), the target is to double this percentage to about 70% in the long term.
President Bola Ahmed Tinubu’s mandate to create jobs for our teeming youth population will be achieved with between 5 to 10 million more jobs created within the value chain, working with the current 500,000 hectares of arable land and the several hundreds of thousands more farmlands to be developed in the medium term.
In closing, this administration understands that food and water are the bedrock of survival and therefore is calling on all Nigerians to partner with us in ensuring the success of this strategic intervention. This administration is working assiduously to ensure that Nigerians do not struggle with their essential needs.
President Bola Ahmed Tinubu wishes to use this medium to continue to assure Nigerians that this administration will not relent in its efforts until all strategic interventions are deployed efficiently and effectively and until every household is positively impacted. Our president is the president of all Nigerians and the father of the nation. The renewed hope mandate remains alive, and no one, absolutely no one, will be left behind.
By Adedapo Adesanya
The Centre for the Promotion of Private Enterprise (CPPE) has projected relative stability for the Naira exchange rate in the second quarter of the year, supported by improved foreign reserves and liquidity, but cautioned that volatility risks remain.
In its Q1 2026 Economic Review and Q2 Outlook: Macro Stability Gains Amid Persistent Cost Pressures and Rising Geopolitical Risks report released on Sunday, the think-tank’s chief executive, Mr Muda Yusuf, said exchange rate conditions also improved significantly as the Naira, which experienced substantial volatility during the reform transition period, stabilised within a relatively narrow band of about N1,340–N1,430 per Dollar in the official market during Q1 2026.
“This stability has helped to moderate imported inflation and restore a measure of business confidence. External reserves strengthened considerably, rising above $50 billion in early 2026,” he stated.
The group said that the Nigerian economy in the first quarter of 2026 reflected a blend of improving macroeconomic stability and persistent structural constraints.
It said that proof of a more stable macroeconomic environment is increasingly evident, underpinned by the cumulative gains from foreign exchange reforms, a sustained period of monetary tightening, and the gradual normalisation of key economic indicators.
However, it noted that these improvements continue to coexist with significant headwinds, adding that the country’s economic growth will remain positive in the next three months, but the pace of expansion may slow due to mounting downside risk
The report also warned of a growing risk of stagflation, as persistent cost pressures combine with fragile growth conditions. It added that rising political activities ahead of the 2027 general elections could weaken reform momentum and distract from economic management.
The CPPE noted that rising global crude oil prices, triggered by the ongoing Middle East conflict, pose a major threat to Nigeria’s fragile disinflation process. While higher oil prices could boost export earnings and government revenue, the think tank stressed that the domestic impact would be adverse.
“The cost pass-through effect poses a significant threat to the fragile disinflation process, potentially reversing recent gains in price stability, weakening real incomes, and further exacerbating the cost-of-living pressures facing households and businesses,” the organisation said.
Highlighting monetary policy concerns, CPPE said the current inflationary trend is largely driven by structural and cost-related factors rather than excess demand, observing that, “Additional monetary tightening would have limited effectiveness in addressing the underlying drivers of inflation, while potentially exacerbating constraints on investment, credit expansion, and overall economic growth.”
The CPPE further raised concerns over the implementation of the proposed N68 trillion 2026 budget, citing weak revenue performance, delays in capital releases, and growing political influence on spending priorities.
“As political pressures intensify, there is a risk of weakening fiscal discipline, with greater emphasis on recurrent and politically expedient spending,” the group stated, advising businesses to shift focus towards resilience and efficiency, urging firms to prioritise cost containment, adopt alternative energy sources, and strengthen foreign exchange risk management strategies.
It also called on policymakers to take urgent steps to safeguard economic stability and protect vulnerable groups.
“Policy priorities should therefore focus on consolidating macroeconomic stability, addressing structural bottlenecks, and implementing targeted measures to protect vulnerable populations,” it noted.
The CPPE concluded that while macroeconomic stability gains recorded in the first quarter of 2026 are notable, the outlook for the second quarter remains cautiously positive but increasingly uncertain due to geopolitical tensions, fiscal risks, and domestic political dynamics.
By Adedapo Adesanya
The Organisation of the Petroleum Exporting Countries and its allies (OPEC+) agreed to raise its oil output quotas by 206,000 barrels per day for May.
Eight members of OPEC+, comprising Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman, agreed to the increase in May quota at a virtual meeting on Sunday, OPEC+ said in a statement.
However, the rise will be in theory, as its key members are unable to raise production due to the US-Israeli war with Iran, which has affected production.
The war has effectively shut the Strait of Hormuz, the world’s most important oil route, since the end of February and cut exports from some OPEC+ members, including Saudi Arabia, the UAE, Kuwait and Iraq. These are the only countries in the group which were able to significantly raise production even before the conflict began.
Besides the disruptions affecting Gulf members, others, such as Russia, are unable to increase output due to Western sanctions and damage to infrastructure inflicted during the war with Ukraine. For Nigeria, even as Africa’s largest producer, it has not been able to keep production quotas steady.
The OPEC+ quota increase of 206,000 barrels per day represents less than 2 per cent of the supply disrupted by the Hormuz closure, but it signals readiness to raise output once the waterway reopens.
Also meeting on Sunday, a separate OPEC+ panel called the Joint Ministerial Monitoring Committee (JMMC), expressed concern about attacks on energy assets, saying they were expensive and time-consuming to repair and so have an impact on supply.
May’s OPEC+ increase is the same as the eight members had agreed for April at their last meeting held on March 1, just as the war began to disrupt oil flows.
A month later, the largest oil supply disruption on record is estimated to have removed as many as 12 to 15 million barrels per day or up to 15 per cent of global supply.
The eight OPEC+ members have raised production quotas by about 2.9 million barrels per day from April 2025 through December 2025, before pausing increases for January to March 2026. The sub-group holds its next meeting on May 3.
Market analysts have warned that oil prices could hit $150 per barrel if the closure of the strait is prolonged and continues, due to damage to energy assets across the critical Middle East region.
As of the time of this report, Brent crude is trading at $108 per barrel, below the US West Texas Intermediate (WTI) crude at $109 per barrel.
By Adedapo Adesanya
Workers at Seplat Energy will resume work after a strike action that impacted production was called off by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) over the weekend, with the company issuing written commitments on pay rises.
Top employees began an indefinite strike last Friday as talks over a collective bargaining agreement and staff welfare issues broke down. The action came at a time when Nigeria is seeking to maximise production amid rising global oil prices.
According to Reuters, in an April 4 letter to the chief executive of Seplat Nigeria, Mr Roger Brown, PENGASSAN said it had directed members at the local energy firm to immediately suspend industrial action after negotiations resumed with the Nigerian National Petroleum Company (NNPC) Limited. Other less-skilled workers are covered by the Nigeria Labour Congress (NLC) and did not partake in the strike with PENGASSAN.
The union said talks on a 2026 collective bargaining agreement would continue, with the aim of concluding outstanding issues by April 13. However, according to the publication, the union did not disclose more details about its financial demands.
“We can confirm that the union has suspended its notice of industrial action to allow negotiations to conclude on outstanding items within an agreed framework,” Seplat spokesperson, Mr Ogechukwu Udeagha, said, adding that “operations are recommencing at our various locations.”
Seplat Energy’s group production averaged 131,506 barrels of oil equivalent per day in 2025, according to its latest audited results. That is the equivalent of around 7 per cent–9 per cent of Nigeria’s total liquids production.
The company expects output to rise to 155,000 barrels of oil equivalent per day, making any sustained disruption particularly sensitive for Nigeria’s supply outlook. This comes as it seeks to scale production while remaining a major supplier of gas to Nigeria’s domestic power market.
With the company’s output expected to rise, any prolonged disruption would have significantly impacted Nigeria’s oil supply and fiscal outlook.
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