Nigeria is currently faced with an all-time high in food inflation, reaching 33.95 percent as of May 2024, according to a report by Trading Economics. This sharp rise contrasts starkly with the record low of -17.50 percent experienced in January 2000. This blog post aims to dissect the multiple factors driving this surge and explore ongoing efforts to mitigate its impact.
Nigeria’s Food Inflation Index
Arc. Kabiru Ibrahim, the national president of the All Farmers Association of Nigeria (AFAN) in an interview emphasized the critical nature of food inflation, given its universal impact. Food inflation, he noted, is particularly pressing because food is a fundamental necessity, and its rising cost disproportionately affects the population.
Key Factors Contributing to Food Inflation
1. Purchasing Power of the Naira
The devaluation of the naira significantly impacts purchasing power. Numerous citizens have highlighted that the naira’s reduced value makes it difficult to buy food at previous prices, with the dollar now around N1,500, compared to N600/N800 earlier.
2. Insecurity
Persistent insecurity in Nigeria has prevented many farmers from cultivating their lands or forced them to incur additional costs for security measures, which are then passed on to consumers.
3. Transportation Costs
The rise in fuel prices has escalated transportation costs, directly impacting food prices as the cost of moving goods from rural to urban areas increases.
4. Importation Costs
The importation of farm inputs, which are factored into production costs, also contributes to higher food prices.
5. Roles of Middlemen
Middlemen add their own profit margins to the cost of food, increasing prices further before the products reach end-buyers.
Federal Government Interventions
The Federal Government, through the Federal Ministry of Agriculture and Food Security (FMAFS), has launched several initiatives to support farmers and boost food production. Notable efforts include:
- National Agricultural Growth Scheme and Agro-Pocket Project (NAGS&AP): Funded by the African Development Bank, these projects aim to increase the production of staples like rice, maize, cassava, and wheat.
- Emergency Agricultural Measures: Upon assuming office, President Tinubu declared a state of emergency in the agricultural sector, directing significant resources toward food security.
- Donations and Distributions: The government facilitated the donation of 33,000 metric tonnes of phosphate from Russia and 2.15 million bags of fertilizer from the Central Bank of Nigeria (CBN) for free distribution to farmers.
Major Achievements in the Past Year
Senator Abubakar Kyari, the Minister of Agriculture and Food Security, reported several key achievements:
- Dry Season Farming: Cultivation of 118,657 hectares of wheat across 15 states.
- Support for Wheat Farmers: Provision of inputs like fertilizers and seeds to 107,429 wheat farmers, resulting in an output of 474,628 metric tonnes.
- Food Commodities Distribution: Release of 42,000 metric tonnes of assorted food commodities to the National Emergency Management Agency (NEMA) and procurement of 58,500 metric tonnes of milled rice for state distribution.
- Crop Fortification: Efforts to improve nutrition by fortifying crops with Vitamin A.
- Mechanization Efforts: Partnerships with international firms to supply and assemble agricultural machinery, aiming to enhance farming efficiency.
Looking Ahead
Despite these efforts, Ibrahim acknowledged that there is always room for improvement. The farmers’ association is eager to collaborate with the government to ensure food security. The Ministry of Agriculture and Food Security has outlined medium-term (2024-2027) and long-term (2024-2027) actions, indicating a strategic approach to achieving sustainable food security.
Through these comprehensive measures, Nigeria aims to address the current challenges of food inflation and work towards a future where food is affordable and accessible for all.
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