The Way Forward out of Soaring Food Prices

Image

Ayo Oyoze Baje

This is certainly the worst of times for millions of Nigerians grappling with an increase in Value Added Tax (VAT), electricity tariff and the pump price for fuel.

What about the swirling insecurity incubus, via farmers-herders clashes, banditry and terrorism as well as delayed rainfall courtesy of climate change? That all these have unfolded in the midst of the coronavirus pandemic makes the sordid economic picture darker.

According to Reuters, inflation in Nigeria has hit a four-year peak of 17.33 per cent driven by the COVID pandemic, a drop in oil revenue and a weakened currency. Going by the data released by the National Bureau of Statistics (NBS), food inflation climbed to 20.57 per cent year-on-year in January 2021, making it the highest in over 11 years.

Food prices, which make up the bulk of the inflation basket, rose 21.79 per cent in February, a jump of 1.22 percentage point in January, the National Bureau of Statistics (NBS) stated. Costs increased by 2 per cent in the month. What all these frightening figures tell us is that there is acute hunger in the land!

The serious worry, however, is that the light at the end of the dark tunnel of insecurity is still far away, according to experts on the economy.

For instance, Jacques Nel, head of macroeconomic research at NKC African Economics in South Africa insists that: “Straining households will be compounded by increasing reports of insecurity in some regions, fuelling the risk of broader social discontent.”

He added that just 30.6 million Nigerians in a population of around 210 million were considered fully employed.

Similarly, Bismarck Rewane, managing director at Lagos-based Financial Derivatives, said the “stagflation crisis” would take a long time to resolve, with inflation eating up economic gains to the point where any government stimulus might be too weak to generate jobs.

On his piece of advice to policymakers on the economy and the Central Bank of Nigeria (CBN), he stated that: “They should be thinking of tightening to encourage savings and investment which could help employment but I think we may have reached the limit of [what can be achieved with changes to] monetary policy.”

So, what is the way forward, if not agriculture, that is renewable and generally less costly to venture into?

But then, such agricultural practices have to be driven by the availability of fertile land, modern technological practices, sustained human capital development features, as well as genuine interest from the public and the private sectors.

These could be done through guaranteed socio-economic security for the farmers and access to adequate funding through single-digit interest bank loans spread over a long period of time.

Also needed are the supply of steady electric power, potable water and technical support with tillers, harvesters and pesticides.

Others include the provision of early-maturing, disease-resistant hybrid seedlings with greater harvest potentials.

Even then the farmers require the input of agric extension workers with the requisite professional knowledge. In fact, they could assist them to form cooperatives.

One other significant factor that could facilitate success in the agric sector is proper planning that would be predicated on a creditable database. Such data could be on the number of registered farmers as per the type of farming practices they are engaged in on a zonal basis, funds required to catalyse their production and access to available markets.

All these would assist the policymakers and those who implement them to focus on areas of comparative advantage, as the current President of the African Development Bank (AfDB), Dr Adewnmi Adesina, once did. That was while he was the Minister of Agriculture and Rural Development under the Dr Goodluck Jonathan-led administration.

Moving forward, we have to learn valuable lessons from the mistakes of the past.

For instance, as at political independence in 1960, agriculture accounted for 68 per cent of the nation’s Gross Domestic Product (GDP). It employed 70 per cent of the labour force, especially in rural areas. It provided not only food but generated employment and contributed 38 per cent of the non-oil foreign exchange earnings.

Indeed, the first national development plan, after independence (1962-1968) was anchored on agriculture. Within that period, over 80 per cent of total export earnings came from the sector as gotten from cocoa, cotton, castor, cowhide, oil palm nuts and rubber.

But how much of these products do we produce locally and how much do we export as of today? The answer is obvious.

With true fiscal federalism firmly in place back then, the Chief Obafemi Awolowo-led Western Region (now defunct) funded the laudable Free Education Policy.

The Cocoa House remains a great testament and symbol of the power of home-grown agriculture. But what do we have these days? A military government-imposed centralized structure, backed by the 1999 Constitution (as Amended) controlling resources (agriculture, education, healthcare delivery) that should ordinarily belong to the states or federating units.

We joyfully allow for exports of our raw agricultural products (cashew nuts, cocoa, coffee, yam, cocoyam, cassava, ginger, garlic, oranges, mangos) only to buy the processed forms at exorbitant rates! That is just like we do with our crude oil.

Sadly, we erroneously focus our attention on borrowing billions of Naira from the same countries that should be begging us for loans!

Perhaps, the German national who recently stated Nigeria holds the key to the global economic feats of the near future certainly knows his onions. With a vast landmass of 923,720 sq/km, a water area of 13,000 sq/km, an annual rainfall of between 250mm (North) and 300mm (South), a clement climate blessed with abundant sunshine, the Rivers Niger and Benue as well as their tributaries and the vast Atlantic Ocean to the South, why not?

The answer, of course, lies with the missing leadership factor. The ones we have had gave us policy flip-flops on agriculture, ranging from the National Accelerated Food Production Programme (NAFPP, 1972), through the Operation Feed the Nation (OFN), the Green Revolution (GR) before the springing up of the River Basin Authorities.

After that came the Agric Banks and eventually the Directorate of Foods, Roads and Rural Infrastructure (DFRII) during the famed IBB era. But all refused to put food on the common man’s table. And so did the high-sounding NAPEP and NEEDS that could hardly identify, not to talk about meeting our daily needs.

It was, therefore, not surprising that the food importation issue metamorphosed from the Rice Armada during the Alhaji Shehu Shagari tenure in the ‘80s to Nigeria becoming the highest importer of fish in 2005, spending some staggering N50 billion on fish annually.

Still, on the importation, it jumped from N3.47 billion in 1990 to N113.63 billion in 2002. Between 1981 and 2019, it recorded N217.76 billion, according to Trading Economics Report.

The piece of good news is that Nigeria has become Africa’s largest producer of rice under the current Buhari-led administration. But rice is not the only food we eat or should concentrate on.

According to Cleaver and Shoebar (1994), Nigeria lacks the requisite knowledge in food processing, preservation and packaging. This has led to post-harvest losses ranging from 25 per cent to 40 per cent and something urgent needs to be done to reverse the drift.

Currently, we need modern agricultural practices to succeed. But let it be made a way of life. Let the study of the subject be made more attractive; right from the primary school level up to the university stage. Governments and the private sector should collaborate to wage a concerted war against Climate Change, terrorism and all forms of insecurity. Farmers should be registered and trained through well-paid farm extension instructors.

Share
Related Stories
Image
20-November-2023

Beyond Borders: Exploring 3 Pillars of Andi-Co Australia Success

One company has not only survived the storms but has flourished internationally, creating an enduring impression on the worldwide business scene. Andi-Co Australia is known worldwide as an innovator that provides high-quality production and sustainability. It transcends all limits to indicate success. This blog is about the 3 key pillars which have become the foundation of the great success that Andi-Co Australia has achieved and its secrets revealed. The ascent of Andi-Co Australia is not just a tale of business triumph; it is also a tale of perseverance, vision, and an unflinching pursuit of excellence. Who is Andi-Co Australia? Since

Image
20-November-2023

Balancing Business Success and Family Succession: Navigating ‘Deemed Offer’ Provisions in Startup Shareholder Agreements

By Thando Sibanda It’s all too easy to think of startup founders as young, vigorous and touched with immortality. But the sector is full of stories of founders dying before their time. Such deaths are always tragic but can be even more so when there isn’t a clear plan in place. Without that plan, conflicts can quickly arise between the family of the deceased, investors, business partners, and other interested parties. Often, the source of this conflict is the founder being subject to a “deemed offer” or “deemed sale” clause. This clause leads to an automatic forced sale of the

More Stories
Image
08-July-2019

Stanbic IBTC’s Austin Ani Wins 2019 NSE Corporate Challenge

By Dipo Olowookere Participants of the 2019 Nigerian Stock Exchange (NSE) Corporate Challenge showed proved their determination to battle the silent-killing health scourge, cancer, by defying the heavy downpour on Saturday morning in Lagos just to be part of the one-day competitive and fun-filled 5 kilometres walk, jog and run event. This year, NSE worked in close partnership with various sponsors, partners, and volunteers, including Stanbic IBTC, Dangote Cement Plc, Beta Glass Plc, FCMB, MTN Nigeria, FBN Holdings, IHS Towers, Transcorp, Fidelity Bank Plc, UBA, SAHCO and AIICO Plc, CSCS Plc, Seplat, EKEDC and Sterling Bank Plc. In-kind contributions and

Image
29-June-2018

NSE: All-Share Index Sheds 0.61% Despite Rise in Volume, Value of Trades

By Dipo Olowookere The All-Share Index (ASI) remained down on Thursday at the close of transactions on the floor of the Nigerian Stock Exchange (NSE), Business Post is reporting. This was caused by profit taking activities embarked upon by investors as they wait patiently for the release of half-year performance of firms listed on the stock exchange. When market closed yesterday, the index went down by 230.49 points or 0.61 percent, while the market capitalisation depleted further by N83 billion to settle at 13.669 trillion. Despite the weak performance of the stock market, which pushed the year-to-date gain to -1.33

Image
02-September-2019

Lagos Buys Farmland in Osun, Plans Agric Business App

By Modupe Gbadeyanka In order to meet the growing demand for food in the metropolis, the Lagos State government has acquired 84 hectares of land in Osogbo, Osun State. The farmland, according to the Commissioner for Agriculture in Lagos, Mr Gbolahan Lawal, would be used to cultivate various types of crops for consumption of residents of the aquatic city. The Commissioner explained that with the acquisition, government would forestall the shortage of food as well as ensure food security for the ever-increasing population of the state which has limited land for agricultural purposes due to its coastal nature. Speaking on

Image
17-August-2021

Rooomxix Unveils TG Omori, 15 Others as Ambassadors

By Sodeinde Temidayo David Nigeria’s biggest urban streetwear fashion house, Rooomxix, has unveiled 16 new brand ambassadors for the brand, with the likes of ace video director, TG Omori, Newton Utere, and Priscilla Ojo top on the list. The announcement was made last week during a pre-launch event for the website in Lagos. These influencers are expected to be good ambassadors of the premium high street/urban streetwear brand and use their platforms to promote the brand. According to the Creative Director of Roomxix, Mr Fortune Spurgeon, the selection of these influencers as the new faces of the brand was appropriate

Image
06-February-2023

Supreme Court Affirms Ahmad Lawan as APC Yobe North Senatorial Candidate

By Dipo Olowookere The president of the senate, Mr Ahmad Lawan, has been affirmed as the candidate of the ruling All Progressives Congress (APC) for the Yobe North Senatorial District. At a ruling delivered on Monday, February 6, 2023, the Supreme Court nullified the candidacy of Mr Bashir Machina. Mr Machina and Mr Lawan had been at loggerhead over the party’s ticket for the slot. The Senate President had contested the APC presidential primary along with the eventual winner of the exercise, Mr Bola Tinubu, and was said to have pushed forward Mr Machina as a placeholder. However, after he

Image
28-December-2017

Fuel Scarcity: Oil Marketers Owe N26.7b—NNPC

By Dipo Olowookere Oil marketers in Nigeria under the aegis of Depot and Petroleum Products Marketers Association (DAPPMA) have been accused of owing Federal Government the sum of N26.7 billion. This claim was made by the Nigerian National Petroleum Corporation (NNPC), which noted that despite this indebtedness, it has not still stopped supply Premium Motor Spirit (PMS) otherwise known as petrol, to the oil marketers. NNPC, while reacting to a statement issued by DAPPMA on Monday, where it claimed that depots of its members were empty because there was no fuel supplied to them, disclosed that despite the concession by

Image
24-October-2022

eNaira Has Put Nigeria in Global Spotlight—CBN

By Aduragbemi Omiyale The Central Bank of Nigeria (CBN) has said the introduction of the eNaira, the digital form of the Nigerian legal tender, Naira, last year has made many countries of the world want to do a similar thing. On Monday, October 25, 2021, President Muhammadu Buhari formally the eNaira in Abuja. The app was made available on Google Play Store but was later dropped after a series of complaints from users. After the issues were resolved, it was restored. The apex bank, in a statement to unveil activities to mark the first anniversary of the digital currency, which

Image
07-January-2023

Commendations For Okowa As Leisure Park Asaba Set To Begin Operations

Encomiums have been pouring in for Delta State Governor, Mr Ifeanyi Okowa, following the completion of Leisure Park Asaba. Leisure Park Asaba is another innovative addition to the long list of Okowa’s infrastructural development in Delta State. Located at Anwai Road, Asaba, Delta State, Nigeria, the park is the latest addition to the tourism industry in the south-south region, boasting some of the finest amusement attractions ever seen in Nigeria, including adrenaline-pumping amusement rides. Leisure Park Asaba also has one of the largest man-made lakes housing a wave pool, kayaking, waterslides, and swimming pool, with the zoo section boasting over

Ad
Ad
Recent Stories
Image
30-November-2023

How COP28 Aims to Unlock Trillions for Climate Solutions by Centering Business

By Badr Jafar Over 70,000 individuals from around the world are about to converge on Dubai to participate in COP28. In the lead-up, the UAE’s COP28 Presidency has made no secret of its ambition to make this the most inclusive and consequential COP ever. While much of that effort has elevated historically underrepresented communities, and rightly so, a lesser-known determination of the COP28 Presidency is about transforming how the COP process engages with the private sector. From 1-2 December this year, COP28 will feature the biggest gathering of business and philanthropy devoted to solving climate change in history, at the

Image
30-November-2023

Chappal Acquires Agbami Oil Field from Equinor

By Adedapo Adesanya Equinor and Chappal Energies have entered into an agreement for the sale of Equinor Nigeria Energy Company (ENEC), which holds a 53.85 per cent ownership in oil and gas lease OML 128, including the unitized 20.21 per cent stake in the Agbami oil field, operated by Chevron. Speaking on the deal, Equinor’s senior vice president for Africa Operations, Ms Nina Koch, said Nigeria has been an important part of Equinor’s international portfolio over the past 30 years, noting that, “This transaction realizes value and is in line with Equinor’s strategy to optimize its international oil and gas

Image
30-November-2023

Yuletide: Emirates Gives Air Travel Guidance to Passengers

By Modupe Gbadeyanka Customers of Emirates Airlines have been advised to plan their travel carefully this December, as departure numbers peak throughout the festive month, including over the UAE National Day and Christmas period. In a statement, the airline operator urged passengers to arrive at the airport up to 3 hours before a flight and take note of their boarding time to ensure they reach the departure gate on time. It noted that travellers could take advantage of a wide array of check-in and baggage drop options from Emirates City Check-In & Travel Store, to newly refurbished First and Business

Image
30-November-2023

We Constantly Seek Opportunities in Payments Ecosystem—Interswitch

By Aduragbemi Omiyale The Managing Director of Payment Processing & Switching at Interswitch Purepay, Mr Akeem Lawal, has said the company will always throw its full weight behind conversations aimed at improving the payments industry. Mr Lawal said this ahead of the 2023 annual conference of the Committee of e-Business Industry Heads (CeBIH) scheduled to take place from Tuesday, December 5, 2023, to Wednesday, December 6, 2023, in Lagos. He is one of the speakers slated to attend the event with the Managing Director of Verve International, Vincent Ogbunude; and the Managing Director of Digital Infrastructure and Managed Services at

Image
30-November-2023

Why Environmental Injustice Flourishes In Nigeria

By Jerome-Mario Utomi Recently, precisely on Tuesday, November 21, 2023, I participated as a panellist at the Institute for Housing and Urban Development Studies (IHS), Erasmus University, Rotterdam, Netherlands, a panel discussion on The role of multi-stakeholder engagement in achieving environmental justice. The gathering, which was held in Victoria Island, Lagos, formed part of training on Environmental Justice: Reducing Ecological and Social Inequalities through Effective and Participatory Land Governance. Essentially, in my private study/preparation for the programme, the need to domesticate the subject became paramount to me. To achieve this objective; the following questions came flooding; what is environmental justice?

Image
30-November-2023

NAICOM Asks Insurance Companies to Tackle Unpaid Claims

By Adedapo Adesanya The boards of insurance companies operating in the country have been charged by the National Insurance Commission (NAICOM) to embrace the measures put in place to tackle the challenges of unpaid claims. The Commissioner for Insurance, Mr Sunday Thomas, expressed worry over the number of outstanding claims in the sector despite efforts by the regulator to address the issue. Mr Thomas, who is also the chief executive of NAICOM, said the organisation, in collaboration with members of the Insurers’ Committee, has taken decisions and incepted measures designed to tame the menace of unpaid claims. Speaking at the

Image
30-November-2023

House of Reps to Halt IOCs from Selling Oil Assets

By Adedapo Adesanya The House of Representatives has pledged to stop international oil companies (IOCs) operating in the Niger Delta from divestment of their offshore assets without being accountable to the environment. The Chairman of the House of Reps Committee on Host Communities, Mr Dumnamene Dekor, said this during a technical session on the implementation of the Host Communities Development Trusts (HCDT), organised by Spaces for Change (S4C) with support from Ford Foundation. Mr Dekor raised the alarm that since the passage of the Petroleum Industry Act in 2021, host communities have not experienced any positive change, rather have remained

Image
30-November-2023

Fidelity Bank Signs UN Principles for Responsible Banking

By Modupe Gbadeyanka A Nigerian lender, Fidelity Bank Plc, has agreed to adopt the single framework for a sustainable banking industry developed through collaboration between banks worldwide and the United Nations Environment Programme Finance Initiative (UNEP FI). Called the UN Principles for Responsible Banking (PRB), the initiative is a structure for ensuring that banks’ strategy and practices align with the vision society has set out for its future in the UN Sustainable Development Goals and the Paris Climate Agreement. Banks which have signed the principles commit to being ambitious in their sustainability strategies, working to mainstream and embed sustainability into

Image
30-November-2023

Morayo Afolabi-Brown Becomes TVC Entertainment Managing Director

By Modupe Gbadeyanka A popular talk show host, Mrs Morayo Afolabi-Brown, has been appointed as the Managing Director of TVC Entertainment (TVCe). The channel is the entertainment subsidiary of the Lagos-based broadcast media platform, TVC Communications. Mrs Afolabi-Brown is the co-anchor of the famous morning show on TVC, Your View, which has won several awards. Confirming her appointment on Thursday, she said, “I am excitingly pleased to announce my recent appointment as the Managing Director of TVCe, the Entertainment Channel of TVC Communications. “This is a new chapter in my career. I am exceedingly grateful to the board for entrusting

Image
30-November-2023

Tinubu Eyes Macroeconomic Stability, Better Investment Environment With 2024 Budget

By Aduragbemi Omiyale President Bola Tinubu has said the 2024 budget presented to the joint session of the National Assembly on Wednesday was designed to achieve macroeconomic stability, a better investment environment, greater access to social security, poverty reduction and enhanced human capital development. According to him, if these goals are achieved, the standard of living of Nigerians will improve and the citizens will enjoy the dividends of democracy. While presenting the 2024 Appropriation Bills to the parliament yesterday, the President said this was why he christened the budget proposal as the Budget of Renewed Hope. Mr Tinubu told the