Investing To Bridge Food Gap

The rise in international market costs for major food items almost reflects that of the 2008 food crisis, presenting a global threat to food security. The situation is especially terrible in Africa, where the COVID-19 pestilence and now the Russia-Ukraine crisis have uncovered the susceptibility of food systems of many nations like Nigeria that rely profoundly on imports of vital staple foods such as rice and wheat.
Nigeria is one of the 10 countries with the highest number of people in food crises. According to the 2022 Global Report on Food Crises, 12.94 million people were in acute food insecurity from October – December 2021. In a recent joint report by the World Food Programme (WFP) and the Food and Agricultural Organisation (FAO), both international bodies warned that acute food insecurity will likely worsen in Nigeria and 19 countries from June to September 2022.
Similarly, a report by the National Bureau of Statistics (NBS) revealed that Nigeria’s inflation rose in June which is its highest in more than five years, induced by rising prices of food and the high cost of diesel. The inflation rate surged to 18.60 per cent in June, up from 17.71 per cent in the previous month. The composite food index rose to 20.60 per cent in June 2022 on a yearly basis, the NBS also said.
Recent statistics from the Central Bank of Nigeria have indicated that Nigeria’s food import bill has risen to N1.1 trillion ($2.7 billion) in 12 months, representing an increase of about 45 per cent. In 2020, about $1.87 billion was spent on food imports. However, the latest CBN data on sectoral utilisation of foreign exchange showed that Nigeria spent $2.7 billion on food imports from January to December 2021, representing an increase in over $840 million.
The drive by the government to mitigate the food deficit is being jeopardised by nature. Uncontrollable flooding destroyed crops in the food-producing states. In Edo State, flooding swept away 280 hectares of rice plantation in Ovia last August. The rampaging flood wreaked havoc on farms in Adamawa, Kogi, Benue, Kebbi, Niger, Delta and Bayelsa States last year. In 2017, the authorities said 10,000 small-holding farmers had their crops washed away by flood after seven days of torrential rain in Benue State.
Since the advent of banditry in the Northern part of the country, farmers have found it difficult to access their farms, and in most cases, have to pay the bandits taxes before they can go to their farms. The situation is gradually getting out of hand to the extent that the Zamfara State Government recently directed residents of the state to obtain guns to defend themselves against bandits ravaging the state. The government should encourage ranching, deal decisively with the bandits, and enable the use of technology to process farm produce.
Terrorists are driving away farmers from their homes in the North-East. President Muhammadu Buhari stated in 2016 that over two million people were in internally displaced persons camps. The North-Central, which includes Benue and Plateau States, suffers gravely from cyclical Fulani herdsmen attacks. The effect of the assaults on food production is damaging. The insecurity demands a fresh impetus for farming to flourish.
All this leaves Nigeria in a desperate situation. The nation has been taking the easy way out with food imports, even where it has a comparative advantage. Therefore, urgent remedies are required to reverse the deficit. An integrated transport system to enable harvests to reach their destinations on time is imperative. The rail sector should be opened to global investors to encourage foreign direct investment and aid the movement of produce and goods.
The frightening situation in the agricultural sector now makes it necessary for the governors to rally round farmers in their states by providing for basic needs and adequate security to enhance massive food production for the populace. We have observed that many governors are only paying lip service to the development of agriculture. Specifically, there has been no coordinated plan to increase the production of food. These and other factors have led to the regular hike in food items.
Demonstrating commitment to agricultural development in Rivers State, Governor Nyesom Wike kick-started an agricultural revolution from inception by encouraging the private sector to re-engineer the 12 agric-related projects it inherited from previous administrations in the state. The government also worked with key partners to complete and put on stream the Rivers State Cassava Processing Plant in Afam, the Oyigbo Local Government Council headquarters. Other governors should do likewise to properly utilise the nation’s capacity for food production.
Interestingly, the cassava processing plant has since been completed and commissioned. It has placed Rivers among the top five cassava-producing states in the country. This factory will be fed with feedstock from 3,000 farmers within the farming communities and other farmers far and wide from neighbouring communities. The cassava plant will address the challenges of value addition of the crop in the value chain sub-sector, creating massive jobs.
Besides, the plant will generate increased incomes, and livelihood, ensure healthy cassava food processing activities and serve as a new page to achieve the desired result in the 10 per cent cassava flour inclusion policy as well as food and nutrition security. It will contribute to food security, and in line with the Federal Government’s policy, build an agribusiness ecosystem to address the challenges in the sector in partnership with all stakeholders. The governor should consolidate on the visible gains to boost agriculture.
To check the rapidly deteriorating food situation, the CBN has to support the food production initiative to increase local output in line with the Federal Government’s resolve to diversify the economy through agriculture and reduce pressure on the nation’s foreign reserves. Efforts must be made to address concerns about staple food items to reduce the country’s import base and make food available for Nigerians. The apex bank should critically look at rice, wheat, fish, and other significant food items that are taking a toll on the country’s foreign reserves.