Feature/OPED
Food Crisis And Nigeria’s Multi Dimensional Poverty
By Jerome-Mario Utomi
If there is any fresh fact that supports the claim by the National Bureau of Statistics (NBS) in November 2022 that the Multidimensional Poverty Index (MPI) is higher in rural areas than in urban areas, it is my experience during a short visit to Agbor, a community which, according to Wikipedia, is the most populous among the Ika people, located in and functions as the headquarter of Ika South Local Government Area of Delta State in South-south geo-political zone of Nigeria.
Among many other observations, the referenced report puts the MPI in rural areas at 72% and that of urban areas at 42%, thereby confirming that a much higher proportion of people living in rural areas compared to those living in urban areas are multidimensionally poor.
The report further noted that 63% (about 133 million people), that is about 6 out of every 10 Nigerians, are multidimensionally poor, with 65% (86 million) and 35% (47 million) of the poor living in the North and South of Nigeria, respectively. The implication is that location matters with respect to poverty and unemployment.
Essentially, as a Nigerian resident in Lagos, I have come across many reports that underlined Nigeria as a nation confronted with both food insecurity and crisis. Again, aside from witnessing commentators argue at different times and places that when food continues to rise in price, everyone feels it, but those with less money, understandably, feel it far more, as they have to spend more of their money on the essentials: housing and food.
I have also, on the other hand, before embarking on that trip, seen parents go without food to ensure that children can eat. Particularly, as prices of staple foods in Lagos, such as rice have reportedly morphed from N35.000 to well over N50,000. Other items such as noodles have equally and appreciably added in prices as the smallest pack which used to sell for N100 now hovers between N130 and N150.
While these heightened price regimes were considered worrying by Lagosians, new facts derived from my latest visit show that if the ongoing food inflation in Lagos is a challenge, the experience in local communities/small towns like Agbor is a crisis.
I arrived at Agbor in the evening and was adequately taken care of by my host and, therefore, made it straight to my hotel room without having any contact with food vendors within and outside the guest house.
The following morning, I thought it wise to observe my breakfast before resuming the assignment that brought me to the town. I approached the reception to ascertain what their breakfast arrangement looks like but was told in plain language that they have no provision/arrangement for such.
With that response, I stepped out onto Old Lagos-Asaba road and just a few buildings away from the guest house was a ‘fast food’ vendor. As it was breakfast that I needed, I politely requested that he prepare two packs (the smallest size) of noodles and two eggs for me. And just immediately, she replied; it will cost you N1,200. How come? I asked. If this is sold at this price, how can jobless Nigerians, particularly the youths, afford such meals? I further queried. Then she replied; Oga, that is the amount; it is either you buy or leave me alone. The jobless Nigerians you are talking about are already aware of the price regime. The rest they say is history.
Scene 2: In the afternoon of the same day, while on my way back to the guest house, I saw a woman who sells roasted yam by the roadside. The pieces of yam displayed were ‘wickedly’ cut into tiny framed sizes and could conveniently be likened to the worth sold for N100 in Lagos. I greeted the woman and thereafter, pointed at two pieces. She replied saying; it was N400. Without pressing further or seeking further clarification, I requested that she prepare it for me.
Handing over the yam to me, which was garnished with three pieces of meat sold at N600 (N200 a piece), I innocently flashed one thousand naira note at her. Lo and behold, the woman told me that I had to give her an additional N200 as the total value of what I bought was N1200. How come? When? I asked at the same time. It was then that she explained to me that the two pieces of yam were actually sold for N800 at N400 per piece.
Also devastating and of course another reason for us to be alarmed is the awareness that this galloping inflation in Agbor, Delta State and its environs is not limited to food items alone but affects accommodation. In what is in some ways a more brazen move is that in Agbor, house rent is higher when juxtaposed with the experience in some parts of Lagos.
This is the challenge facing communities in our republic. The high cost of food and accommodation in Agbor may have existed in an overt manner, the experience in other towns and communities in the country may be worse but exists in covert forms.
Talking about food insecurity in Nigeria, many have argued that the food challenge in the country has been impacted especially by violent conflicts, including the insurgency in the North East; armed banditry in the Northwest; perennial farmer/herder conflicts in the North Central, South West, and increasingly across the country; and separatist agitation in the South East among others.
To others, the challenge is exacerbated by natural disasters; in particular, the rising incidence and frequency of floods in large parts is a consequence of climate change impact, which continues to affect food production and the availability and affordability of food.
A sterling example is the report by the National Emergencies Management Agency (NEMA), 2022 which among other remarks observed that floods led to the destruction and washing away of over 675,000 hectares of farmland.
“One can only imagine the extent of the impact of this scale of destruction of farmlands on agricultural activities and food production across the country. Farmers, the majority of whom are small-scale farmers, lost not only crops and harvests, but also farm animals, poultry, fishery, and farm implements to the raging floods.”
Whatever the true picture may be, there are in the opinion of this piece multiple reasons why the federal and of course state governments in Nigeria should undertake strategic efforts to solve the problem of food inflation not just in Agbor but across the country.
Aside from the fundamental relationship between the food crisis and inflation and its harmful effects on every economy, the human population in the country quadrupled and unemployment multiplied in the past decades and the average impact of this uncontrolled increase on the nation’s economy is tellingly obvious.
Undoubtedly, I believe and still believe that as a country desirous of achieving sustainable development, the recent decision by the Federal Government to launch the conditional cash transfer policy for 15 million households on October 17, 2023, will not resolve the present hunger challenge in the country.
Rather, there are both specific and specialized reasons for the government to throw its weight behind agriculture by creating an enabling environment that will encourage Nigerian youths to take to farming.
First, aside from the worrying awareness that by 2050, global consumption of food and energy is expected to double as the world’s population and incomes grow, climate change is expected to have an adverse effect on both crop yields and the number of arable acres, we are in dire need of solution to this problem because unemployment has diverse implications.
Security-wise, a large unemployed youth population is a threat to the security of the few that are employed. Any transformation that does not have job creation as its main objective will not take us anywhere and the agricultural sector has the capacity to absorb the teeming unemployed youth in the country.
The second reason is that globally, there are dramatic shifts from agriculture in preference for white-collar jobs, a trend that urgently needs to be reversed.
Separate from job creation, averting malnutrition which constitutes a serious setback to the socio-economic development of any nation is another reason why Nigeria must embrace agriculture, a vehicle for food security and a sustainable socio-economic sector.
In fact, it was noted recently that in Nigeria, governments over the years have come to realize that sustainable growth is achievable only under an environment in which the generality of the people is exposed to a balanced diet, not just food. This explains why agricultural production should receive heightened attention. In Nigeria, an estimated 2.5 million children under five suffer from severe acute malnutrition (sam) annually, exposing nearly 420,000 children within that age bracket to early death from common childhood illnesses such as diarrhoea, pneumonia and malaria.
This is the best time for President Bola Ahmed Tinubu-led federal government and state governors to serve and save Nigerians from malnutrition and multi-dimensional poverty.
God bless Nigeria!!!
Utomi Jerome-Mario is the Programme Coordinator (Media and Policy) at the Social and Economic Justice Advocacy (SEJA), Lagos. He could be reached via [email protected]/08032725374
By Luke Kyohere
The global payments landscape is undergoing a rapid transformation. New technologies coupled with the rising demand for seamless, secure, and efficient transactions has spurred on an exciting new era of innovation and growth. With 2025 fast approaching, here are important trends that will shape the future of payments:
1. The rise of real-time payments
Until recently, real-time payments have been used in Africa for cross-border mobile money payments, but less so for traditional payments. We are seeing companies like Mastercard investing in this area, as well as central banks in Africa putting focus on this.
2. Cashless payments will increase
In 2025, we will see the continued acceleration of cashless payments across Africa. B2B payments in particular will also increase. Digital payments began between individuals but are now becoming commonplace for larger corporate transactions.
3. Digital currency will hit mainstream
In the cryptocurrency space, we will see an increase in the use of stablecoins like United States Digital Currency (USDC) and Tether (USDT) which are linked to US dollars. These will come to replace traditional cryptocurrencies as their price point is more stable. This year, many countries will begin preparing for Central Bank Digital Currencies (CBDCs), government-backed digital currencies which use blockchain.
The increased uptake of digital currencies reflects the maturity of distributed ledger technology and improved API availability.
4. Increased government oversight
As adoption of digital currencies will increase, governments will also put more focus into monitoring these flows. In particular, this will centre on companies and banks rather than individuals. The goal of this will be to control and occasionally curb runaway foreign exchange (FX) rates.
5. Business leaders buy into AI technology
In 2025, we will see many business leaders buying into AI through respected providers relying on well-researched platforms and huge data sets. Most companies don’t have the budget to invest in their own research and development in AI, so many are now opting to ‘buy’ into the technology rather than ‘build’ it themselves. Moreover, many businesses are concerned about the risks associated with data ownership and accuracy so buying software is another way to avoid this risk.
6. Continued AI Adoption in Payments
In payments, the proliferation of AI will continue to improve user experience and increase security. To detect fraud, AI is used to track patterns and payment flows in real-time. If unusual activity is detected, the technology can be used to flag or even block payments which may be fraudulent.
When it comes to user experience, we will also see AI being used to improve the interface design of payment platforms. The technology will also increasingly be used for translation for international payment platforms.
7. Rise of Super Apps
To get more from their platforms, mobile network operators are building comprehensive service platforms, integrating multiple payment experiences into a single app. This reflects the shift of many users moving from text-based services to mobile apps. Rather than offering a single service, super apps are packing many other services into a single app. For example, apps which may have previously been used primarily for lending, now have options for saving and paying bills.
8. Business strategy shift
Recent major technological changes will force business leaders to focus on much shorter prediction and reaction cycles. Because the rate of change has been unprecedented in the past year, this will force decision-makers to adapt quickly, be decisive and nimble.
As the payments space evolves, businesses, banks, and governments must continually embrace innovation, collaboration, and prioritise customer needs. These efforts build a more inclusive, secure, and efficient payment system that supports local to global economic growth – enabling true financial inclusion across borders.
Luke Kyohere is the Group Chief Product and Innovation Officer at Onafriq
In a heartfelt statement released today, the Conference of Nigeria Political Parties (CNPP) has extended its warmest congratulations to Ghana’s President-Elect, emphasizing the importance of learning from Ghana’s recent electoral success as Nigeria gears up for its 2027 general elections.
In a statement signed by its Deputy National Publicity Secretary, Comrade James Ezema, the CNPP highlighted the need for Nigeria to reclaim its status as a leader in democratic governance in Africa.
“The recent victory of Ghana’s President-Elect is a testament to the maturity and resilience of Ghana’s democracy,” the CNPP stated. “As we celebrate this achievement, we must reflect on the lessons that Nigeria can learn from our West African neighbour.”
The CNPP’s message underscored the significance of free, fair, and credible elections, a standard that Ghana has set and one that Nigeria has previously achieved under former President Goodluck Jonathan in 2015. “It is high time for Nigeria to reclaim its position as a beacon of democracy in Africa,” the CNPP asserted, calling for a renewed commitment to the electoral process.
Central to CNPP’s message is the insistence that “the will of the people must be supreme in Nigeria’s electoral processes.” The umbrella body of all registered political parties and political associations in Nigeria CNPP emphasized the necessity of an electoral system that genuinely reflects the wishes of the Nigerian populace. “We must strive to create an environment where elections are free from manipulation, violence, and intimidation,” the CNPP urged, calling on the Independent National Electoral Commission (INEC) to take decisive action to ensure the integrity of the electoral process.
The CNPP also expressed concern over premature declarations regarding the 2027 elections, stating, “It is disheartening to note that some individuals are already announcing that there is no vacancy in Aso Rock in 2027. This kind of statement not only undermines the democratic principles that our nation holds dear but also distracts from the pressing need for the current administration to earn the trust of the electorate.”
The CNPP viewed the upcoming elections as a pivotal moment for Nigeria. “The 2027 general elections present a unique opportunity for Nigeria to reclaim its position as a leader in democratic governance in Africa,” it remarked. The body called on all stakeholders — including the executive, legislature, judiciary, the Independent National Electoral Commission (INEC), and civil society organisations — to collaborate in ensuring that elections are transparent, credible, and reflective of the will of the Nigerian people.
As the most populous African country prepares for the 2027 elections, the CNPP urged all Nigerians to remain vigilant and committed to democratic principles. “We must work together to ensure that our elections are free from violence, intimidation, and manipulation,” the statement stated, reaffirming the CNPP’s commitment to promoting a peaceful and credible electoral process.
In conclusion, the CNPP congratulated the President-Elect of Ghana and the Ghanaian people on their remarkable achievements.
“We look forward to learning from their experience and working together to strengthen democracy in our region,” the CNPP concluded.
By Kenechukwu Aguolu
The proposed tax reform, involving four tax bills introduced by the Federal Government, has received significant criticism. Notably, it was rejected by the Governors’ Forum but was still forwarded to the National Assembly. Unlike the various bold economic decisions made by this government, concessions will likely need to be made on these tax reforms, which involve legislative amendments and therefore cannot be imposed by the executive. This article highlights the purposes of taxation, the qualities of a good tax system, and some of the implications of the proposed tax reforms.
One of the major purposes of taxation is to generate revenue for the government to finance its activities. A good tax system should raise sufficient revenue for the government to fund its operations, and support economic and infrastructural development. For any country to achieve meaningful progress, its tax-to-GDP ratio should be at least 15%. Currently, Nigeria’s tax-to-GDP ratio is less than 11%. The proposed tax reforms aim to increase this ratio to 18% within the next three years.
A good tax system should also promote income redistribution and equality by implementing progressive tax policies. In line with this, the proposed tax reforms favour low-income earners. For example, individuals earning less than one million naira annually are exempted from personal income tax. Additionally, essential goods and services such as food, accommodation, and transportation, which constitute a significant portion of household consumption for low- and middle-income groups, are to be exempted from VAT.
In addition to equality, a good tax system should ensure equity and fairness, a key area of contention surrounding the proposed reforms. If implemented, the amendments to the Value Added Tax could lead to a significant reduction in the federal allocation for some states; impairing their ability to finance government operations and development projects. The VAT amendments should be holistically revisited to promote fairness and national unity.
The establishment of a single agency to collect government taxes, the Nigeria Revenue Service, could reduce loopholes that have previously resulted in revenue losses, provided proper controls are put in place. It is logically easier to monitor revenue collection by one agency than by multiple agencies. However, this is not a magical solution. With automation, revenue collection can be seamless whether it is managed by one agency or several, as long as monitoring and accountability measures are implemented effectively.
The proposed tax reforms by the Federal Government are well-intentioned. However, all concerns raised by Nigerians should be looked into, and concessions should be made where necessary. Policies are more effective when they are adapted to suit the unique characteristics of a nation, rather than adopted wholesale. A good tax system should aim to raise sufficient revenue, ensure equitable income distribution, and promote equality, equity, and fairness.
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