Deputy1111:
By Kehinde Adeoye

Ever since after the unfortunate outbreak of the Covid-19 pandemic, that was first reported from Wuhan, China, on 31 December 2019, the world economy has been thrown into disarray. World powers including the United States went neck deep into recession. It was same story for other American and European countries. The global health crisis also took its toll on the African continent and Nigerian wasn’t left behind.

All over the world, deaths were recorded and several homes were affected by loss of jobs, shelter and livelihood. Lockdown were subsequently initiated in every part of the world to limit the spread of the virus which perhaps was grossly felt in some places than others. But even at that, thus far, the coronavirus-related deaths worldwide has passed a grim milestone of 4 million.

After the introduction of lockdown which made it difficult for people to go about their businesses. It got worse for artisans and business owners who made their living through daily sales unlike salary earners. Governments throughout the world encouraged citizens to stock up food items for the lockdown. At that time, it was uncertain when movements would resume. Most people had to withdraw their savings to feed their families.

Nigeria’s economy was shut down at the twilight of March 2020, as a result of this problem which halted all production activities, movements and major economic activities. Some small and medium scale business owners with huge employees had to lay off their workers, downsize or close down the entire business because they couldn’t meet up with the monthly financial obligations towards their workers.

The agricultural sector was one of the several sectors affected by the pandemic globally, because the lockdown was put in place during the planting season. Despite the fact that it was subsequently relaxed a little to enable farmers to cultivate, they had difficulties accessing farm inputs and transporting the same across the markets.

Narrowing it down to Nigeria now, we would recall that prior to the outbreak of the coronavirus pandemic, clashes between farmers and herdsmen were rampant. That prompted heavy reduction in production of food crops especially in the northeastern parts of Nigeria. Most farmers who have had terrible experiences with the clashes either stopped farming or reduced the capacity of farm production.

The COVID-19 lockdown restricted the transportation of goods, especially food items, across the country. A ban on inter-state movement and farmers’ inability to cultivate their farmlands, amongst other processes, posed a challenge on food security in the country. So, it wasn’t unexpected that these unusual distortions of farming activities and agricultural business would shrink the supply of various farm produce, with attendant increase in prices of food items.

A market survey by Dataphyte, a media research and data analytics organisation indicates that “Nigerians witnessed an average of 66.8% increase in the prices of food items between last year (2020) February, the month the first case of coronavirus was confirmed, and at March (2020), when the survey was conducted.

Dataphyte’s analysis of the prices of foodstuffs across 13 states in the country, one of the most extensive market surveys in the country showed that the food price situation had contracted the purchasing power of citizens. The states sampled were Anambra, Benue, Enugu, Ebonyi, Abuja (the Federal Capital Territory, FCT), Kano, Kwara, Lagos, Niger, Ogun, Ondo, Oyo, and Sokoto states.

“The price of beans and garri nearly doubled within the period under review. Beans rose from N1,457 to N2,883 per paint rubber, representing an estimated 98% (97.92%) increase. The cost of garri rose from N869 to N1,856 per paint rubber, an estimated 97% (97.27%) change. The price increases of these two staple foods were the highest in the last one year period of the coronavirus pandemic,” Dataphyte said.

Garri is made from cassava, a tuber plant, which is one of the most important food crops in West Africa. Nigeria produces about 250,000 tonnes of it annually. Nigeria is also regarded as the largest producer of cassava in the world. Garri is either made into ‘eba’ or soaked to drink as flakes. It is often regarded as the ‘poor man’s food,’ in Nigeria, because of its relatively low price and the ease of taking it as a snack without need of cooking, unlike most of the other food items.

Dataphyte further disclosed in its report here.

However, sustained violence and a general state of insecurity in the country, especially in the northeast of the country, could have contributed to the scarcity of the farm products and processed food items.

But statista making a disclosure from its survey on the percentage change in prices of selected food products in Nigeria 2021 said: “In May 2021, food prices in Nigeria increased considerably compared to May 2020. Maize, gari (or garri), oil, and beans prices increased the most. In particular, the price of white gari grew by over 50 percent compared to the previous year, while the price of yellow maize grain added up to 51 percent more. Among all selected food products, no item recorded a decrease in price. In fact, Nigeria is among the countries with the highest inflation rate in the world and recorded a fast growing CPI.”

Other factors responsible for the food price surges include border closure, said to have contributed 4%. General Insecurity, terrorism, killings, kidnapping, farmers-herder clashes were also said to have directly contributed about 3% of the cause.

Now, in a bid to reduce hunger and scarcity as well as cater for the welfare of Nigerians, especially the poor households, the Federal Government through the Ministry of Humanitarian Affairs gave out tokens and distributed palliatives throughout the states

Since the intervention of the Federal Government (FG) to share palliatives and cash to the poorest of the poor had little effects, the FG saw the need to further address the state of the nation with the introduction of the Economic Sustainability Committee chaired by Vice President Osinbajo. This was created specifically to address the post Covid-19 issues affecting the economy.

Nigeria Economic Sustainability Plan (ESP) was approved by the Federal Executive Council on June 24, 2020, as established by President Muhammadu Buhari on March 30, 2020. Chaired by Vice President Yemi Osinbajo, the ESC comprised several Cabinet Ministers as well as the Group Managing Director of the NNPC and the Governor of the Central Bank of Nigeria.

While inaugurating the committee on the April 2, 2020, the Vice President noted that “what Mr President has asked us to do is to devise a strategy in order to be able to keep the economy going and also make provisions to ensure that we are able to retain jobs and indeed create more.”

“We also need to develop the Nigerian economy in a way that we will even take advantage of the challenges of these times and convert those challenges to opportunities,” Prof Osinbajo said.

Speaking further on the responsibilities of the committee, the Vice President said “what we will need to do is something that is bold, radical and one that our people can understand and buy into.

“We must design a broad vision that takes into account how to implement a big plan inclusive of a focus on mass local productivity and mass employment.

“The big plan of government is to find a way for us to be able to do mass housing, increase agricultural production, ensure massive local productivity by among several other options, increasing support to MSMEs, and majorly improve avenues to put more cash in the hands of our people and also make them productive,” the VP noted.

After deliberations by the committee, the Vice President submitted its report for implementation on the 11th of june, 2020 with the theme “Bouncing Back”. The President reacting to the development appreciated the committee while tagging the plan a “National Plan.

“I’m pleased to hear that the Economic Sustainability Committee consulted with all the National Economic Councils and the National Assembly, and I look forward to our continued partnership with one focus to implement what I consider a national plan,” the President noted.

The Vice President said the Committee was motivated by President Buhari’s directive to come up with a plan that would to provide succour to Nigerians, taking into account the dangers posed to the economy by the global economic slowdown, which also resulted in a drastic fall in crude oil production and prices, with serious implications for government revenues and foreign exchange earnings

Speaking after receiving the ESC plan from the VP, President Buhari said the committee was established because “during these uncertain times, the government saw the need to act quickly and avert the worst; while government continues to seek ways of supporting businesses and industry. The President added that the administration is determined “to support business especially sectors facing difficulty as the effect of the Covid-19 pandemic and the resultant socio-economic Covid-19,” while it focuses on implementing the recommendations of the national plan.

The President stated that the recommendations in the plan would help in developing a truly competitive economy that can support our people and secure our future. He said “I congratulate the Economic Sustainability Committee for completing this critical national assignment in good time,” he added. He also commended Nigerians for their resilience in adapting to the Covid-19 pandemic, as well as the efforts of health workers whom he said, “continue to play critical role in keeping our country safe.”

Prof. Osinbajo, still on the same issue added, “In other words, to create millions of new jobs, we need to focus on encouraging local production, local services, local innovation, and emphasize the use of local materials. Nigeria and Nigerians can produce our food, build our houses and construct our roads, using local materials in all cases. If we must import, it must be to support local production. We have, therefore, recommended that we must carry out mass programmes that create jobs and utilise local materials.”

A mass agricultural programme, mass housing programme, support for micro, small and medium enterprises, reduction in NAFDAC registration fees, survival fund, strengthening the social safety net are the proposed key projects among others were created to alleviate the problems.

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https://thedailyleaks.com/forces-behind-hike-in-food-prices-and-governments-interventions-in-nigeria-globally/

DameAnnah:
The issues stated here are enlightening enough for people globally, especially, Nigerians, to know the reasons foods are expensive.

These challenges of our time must be solved, and just as the government plays its part, Nigerians too must play their part too.

Let's get back to farm, tilt the ground and produce foods in the most modern ways. These days, farming has changed from the old practices. We all need to embrace to stem the tide of hike in food prices.

DameAnnah:
The issues stated here are enlightening enough for people globally, especially, Nigerians, to know the reasons foods are expensive.

These challenges of our time must be solved, and just as the government plays its part, Nigerians too must play their part too.

Let's get back to farm, tilt the ground and produce foods in the most modern ways. These days, farming has changed from the old practices. We all need to embrace to stem the tide of hike in food prices.

vedaxcool:
[i][/i]

Even smugglers now employ PR services to pressure government. The lack of patriots in this country must be addressed.