Looming food Crises in Nigeria: Experts opinion

 

We recalled that sometime in June, Hon. Nwabueze Buchi George, the Chairman of Globe Chamber of Commerce and Trade Nigeria predicted the possibility of food crises in Nigeria. In His opinion, he called on panelists, policy makers and all well meaning Nigerians that are involved in agriculture and food security structure in Nigeria to be cautious and pay detail attention to how the global pandemic will ravaged and inflicted undue hunger on the rural dwellers in the country.

“Any conversation around the improvement of food should be a discussion of priority particularly now that the pandemic had impeded socio-economic activities on the global scale.

Discussion around food provision and development amid the pandemic is critical for all sectors of the economic. It is of utmost important for the public sector because it requires a healthy and active populace to ensure that the economy runs smoothly, he added.

 “To have sufficient food reserve across the country, we must visualize a new reality, proffer innovative solution and take decisive action to ensure we harness”, he concluded.

 

Other Exporters viewed that the predominant factor behind the current surge in the prices of major food items is the closure of the land borders, which has been exacerbated by administrative controls employed by the monetary and fiscal authorities in rationing foreign exchange. We recall that in July, the CBN included Maize on the list of items ineligible for FX from official sources.

Recently, President Muhammadu Buhari ordered the Central Bank of Nigeria (CBN) not to allocate foreign exchange to importers of food and fertilizer. It is also understand that heavy rain falls in the northwestern part of the country have also affected farmlands, as the head of Kebbi state branch of the Rice Farmers Association of Nigeria revealed that about 90% of the 2 million tons of rice to be harvested were destroyed.

The persistent increase in the prices of food items despite the protectionist measures implemented by the government suggests that local production still lags consumption significantly. Considering the weak harvest season due to the impact of the global pandemic amidst higher distribution costs linked to higher PMS prices following the deregulation of the downstream sector, we believe price of food items will continue to trend upwards.

Additionally, we expect the devaluation in the local currency to put further pressure on imported food inflation. Overall, we think the government needs to review the protectionist measures in place in order to avert an imminent food crisis.

 

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