Opinion
Addressing High Food Prices In Nigeria
I went to the market last weekend to buy some groceries and was shocked by the sharp rise in the prices of almost all the items. When a tomato seller told me that a small basket I bought for N700 days ago had gone up to N1,700.00, I felt it was a slip of tongue or a joke as the man is famous for jokes. So, I asked again, “Customer, I mean the price of this small basket.” And he retorted, “Madam, tomato i don cos. We no see am buy. The basket wey we dey buy for N7,000.00 before, they don dey sell am N17,000.00. No bi me do am, madam. Things cos”.
Of course, I wasn’t going to settle for that. I decided to check at other places, hoping to get a better price all to no avail. The prices of many food items and other commodities have doubled, some tripled just within one week.
Food as we know is one of the basic necessities of life. Some have even gone further to say that access to food is a basic human right, vital for good health and ultimately for life itself. It, therefore, stands to reason that whatever infrastructure or developmental project any government is embarking on without considering the welfare of the citizens may not mean much to the people who are hungry and who are not sure of their daily bread.
During the 2015 elections, many Nigerians trooped out to vote for President Muhammadu Buhari believing that he was the messiah needed to deliver the nation from poverty, corruption, hunger and bad government and take us to the Eldorado. Incidentally, rather than getting better, the situation keeps deteriorating by the day. Policies that seem to be aimed at deliberately impoverish the people keep springing up every now and then.
When in September last year the price of Premium Motor Spirit (Petrol) and electricity tariff were increased right in the middle of COVID-19 pandemic, many people kicked against it saying it would add to the excruciating hardship in the country, knowing how life in Nigeria revolves around these two key items, government said that the decision was in the interest of the citizens. According to the President, the COVID-19 pandemic, which had affected economies globally, compelled his administration to make some necessary far-reaching adjustments for long-term gains.
He said government’s fixing or subsidising PMS prices would mean a return to the costly subsidy regime with the potential return of fuel queues, adding that there was no provision for fuel subsidy in the revised 2020 budget and assured citizens of the government’s determination to remain alert to its responsibilities by preventing marketers from raising prices arbitrarily or exploiting them.
The Minister of State for Petroleum Resources, Chief Timipre Sylva, on the other hand, explained that removal of subsidy was not a political decision but had become inevitable, especially with the effect of the COVID-19 pandemic, the low crude oil prices and curtailing of Nigeria’s production output by OPEC, which had constrained government’s revenue. “We have cut production to 1.412 million barrels, which has halved our earnings,” he disclosed.
Today, great uncertainty still surrounds the issue of fuel subsidy. There is constant anticipation of increase in fuel price from the current N165.00 to maybe N200.00 or more. Some shylock independent petroleum marketers have cashed in on these irregularities to periodically hoard petroleum products thereby creating artificial scarcity which is one reason traders capitalise on to hike prices of the goods and commodities.
The need to urgently and sincerely address the problem of corruption, subsidy, local refineries and other issues around the petroleum industry in the country cannot be overstated. The same applies with the power sectors as experts have repeatedly warned that the abysmal 4,000 mw of electricity generated cannot take the economy nowhere. For a country of 200 people, they say a minimum of 100,000 mw is required to support the economy and increase the purchasing power of the naira.
In a recent article titled, “Nigeria Printing Money: The Road To Zimbabwe”, an economic expert, Nick Agule, observed that if the N60 billion printed by the Central Bank of Nigeria (CBN) and shared among the three tiers of government as revealed by the Edo State Governor, Godwin Obaseki, recently and subtly alluded to by the CBN Governor, Godwin Emefiele, was invested in the agricultural sector and to bail out the struggling production sector of the economy, it would have been of immense benefit to the nation’s economy.
He asserted that with the new cash, these industries would have been able to fund working capital to bounce back to business and boost production. A boost in production means more jobs will be created as more factories reopen and service centers return to life. The economy will then be jump-started back to life with increased output and jobs.
He, however, warned that continuing on the path of financial rascality will only worsen the already bad situation in the country as the naira will become almost worthless with scanty food to buy.
Should our leaders at both the federal and state levels harken to this and other abundant wise counsels and take necessary steps to address hunger, poverty and economic problems in the country? Can they begin to make investments that will benefit the citizens and make our states and nation at large better places to live rather than for their selfish gains?
Rivers State Government has taken a laudable step at alleviating poverty and hunger in the state through investment in the state-owned $12 million cassava processing project. It will generate massive employment, enhance the Gross domestic Product (GDP) of the state in particular and Nigeria in general and bring, to the barest minimum, uprising and insecurity.
Other states, particularly in the southern part of the country, should take a cue from Rivers State and invest in agriculture to save their people from extreme hunger and starvation.
However, without addressing the heightened insecurity in the country – banditry, kidnapping, herdsmen menace and the likes which hinder farmers from freely carrying out their farming activities, all these investments may not yield the desired results.
Byh: Calista Ezeaku
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