Tackling Food Prices: A Delicate Balance

NABG Warns Against Quick Fixes, Advocates Sustainable Solutions for Agricultural Sector…

By AbdulHakeem Mutiu Adejumo-Ajeseku, Abuja-Nigeria

BTvNEWS: The National President of the Nigeria Agribusiness Group (NABG), Arc. Kabir Ibrahim, has expressed concerns that President Bola Ahmed Tinubu’s initiative to reduce food prices by addressing transportation costs may yield unintended consequences if underlying structural issues in the agricultural sector are not concurrently addressed.

In response to the announcement by Minister of State for Agriculture and Food Security, Senator Aliyu Sabi Abdullahi, Ibrahim likened the situation to being “caught between the devil and the deep blue sea.”

“Unless the costs of inputs like fertilizers, agrochemicals, seeds, and transportation, which make distribution expensive, are tackled; steady and affordable energy supply is achieved to facilitate seamless processing; and insecurity is curbed, potential catch-22 situations may arise, rendering the policy detrimental to internal economic growth,” Ibrahim warned.

“A classic example includes rice millers and farmers, maize farmers, and the list goes on,” he added.

Ibrahim also highlighted that the recent zero-tariff food importation policy, in effect from July to December 2024, has exacerbated the struggles of local producers.

“We endorse the notion of making food available and affordable for Nigerians; however, we must prioritize sustainable solutions over adhoc measures, particularly when such measures may adversely impact domestic productivity. It is crucial that we are considerate of both producers and consumers in the interest of equity and sustainability,” the NABG President emphasized further.

He also urged the Federal Government to revitalize the Guaranteed Minimum Price (GMP) scheme to purchase commodities from large-scale farmers who are struggling to compete with imported goods.

The President’s directive to reduce food prices was announced by the Minister of State for Agriculture during a capacity-building workshop for the Senate Press Corps in Abuja.

The Minister tasked a committee of the Federal Executive Council (FEC) to take immediate action to further decrease food prices in the country.