The National Bureau of Statistics reports that June’s food inflation rate stood at 40.87 percent year-on-year and 2.55 percent month-on-month. Some contend the actual rates are even higher, making it increasingly difficult for many Nigerians to afford food. Against this backdrop, President Bola Ahmed Tinubu’s decision to suspend duties, tariffs, and taxes on importing key food items like husked brown rice, wheat, maize, and cowpeas for 150 days, along with the planned importation of 250,000 metric tonnes each of wheat and maize by the Federal Government, is commendable. No responsible government would let its citizens starve. The President has reaffirmed his commitment to boosting local food production, acknowledging that achieving food sufficiency is a gradual process.
The devaluation of the naira and the removal of the fuel subsidy have driven up the cost of food production. Prices for fertilizer, seedlings, and machinery like tractors have surged. Similarly, transportation and distribution costs have increased, contributing to cost-push inflation, as these higher costs are passed on to consumers. In addition, insecurity has forced many farmers to abandon their lands. Dry season farming, crucial for year-round food availability, has become more expensive due to high fuel and diesel costs, as irrigation often relies on generators amidst the country’s power challenges. These issues have led to food shortages, hoarding, and profiteering, driving up prices and causing demand-pull inflation.
Livestock farming has also been affected. The cost of animal feed has skyrocketed, raising the expenses of rearing livestock. Combined with increased transportation costs and the necessity of using generators, this has led to higher prices for meat, eggs, and milk. Cattle rustling remains a significant issue as well.
Over the years, the Federal Government has launched various programs to boost domestic food production. However, the effectiveness of these interventions is questionable if they do not reach their intended beneficiaries. No matter how well-designed, programs fail without proper execution and monitoring. Local Governments, being closest to the people, should play a key role in these interventions. Continued efforts are needed to promote domestic food production by providing subsidized genetically improved seedlings, fertilizers, and low-interest loans.
Addressing insecurity, power, and road network issues is crucial, but the government must also offer cheaper or subsidized transportation for food items. The high cost of transporting food from farms to markets significantly impacts final prices. Lower distribution costs would result in cheaper food prices.
Improving the value chain to reduce post-harvest losses, enhance food quality, and increase farmers’ income is essential. It’s important to note that food importation and agricultural subsidies are common practices, even in developed nations like the United States and China. Recognizing that food sufficiency can’t be achieved overnight, banning food importation when local production is insufficient only encourages hoarding and profiteering.
Thus, President Bola Tinubu’s decision to suspend duties, tariffs, and taxes on specific food imports for 150 days, alongside the importation of 250,000 metric tonnes of wheat and maize, is in the nation’s best interest. The President has assured that his administration will continue to drive local food production.
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