Saturday, 13 July 2024 04:48

Soaring food-price inflation is hurting Nigeria’s poor - The Economist

Rate this item
(0 votes)

In a video on social media, Amarachi makes a stew that replaces pricey tomatoes with more affordable watermelon chunks. “Today we say bye-bye to tomatoes,” she says. As Nigerians adjust to soaring food prices, the video has gone viral.

Tomato prices that fluctuate with the seasons are normal in Nigeria, but the record annual pace of food inflation, which hit 41% in May, is not. Most pinched are the poor. Staples such as beans and maize cost 400% more than they did a year ago, while a 100kg bag of sorghum has more than tripled in price. Since wages have barely moved, the result is a deepening food crisis. Whereas hunger was once concentrated in conflict-ridden areas in northern Nigeria, now it affects poorer households nationwide. Of the 44m people in west Africa and the Sahel who do not get enough to eat, more than half are Nigerian.

Much of the blame should be heaped on the government. A haphazard introduction of new banknotes under the previous administration led to a shortage of legal tender. This caused most hardship in the countryside, where penetration of bank or mobile-money accounts is lowest. With cash scarce, farmers charged middlemen a premium if they used electronic payments, pushing up prices in the markets.

A weakening naira dealt another blow—its 40% fall against the dollar made it the worst-performing currency in the world in the first half of this year. That has pushed up the cost not only of imported foods, but also of seeds and fertiliser. The government’s removal of fuel subsidies, though necessary, further raised the cost of running farming machinery and taking harvests to markets.

Even after the effects of these short-term problems have passed, Nigeria will still face the longer-term challenges posed by climate change. Most crops in Nigeria are rain-fed, which makes them vulnerable to drought. Meanwhile desertification is causing nomadic pastoralists to move their herds onto arable land, where the animals trample or eat crops, leading to conflict with farmers. Terrorism in the north-east, farmer-herder conflict in the north-west and criminality in Nigeria’s “middle belt” have all kept farmers away from their lands in the country’s breadbasket.

To ease the suffering, the UN’s World Food Programme is helping more than 1m of the most vulnerable people a month in northern Nigeria. And the World Bank has provided $800m for a conditional cash-transfer programme targeting 15m households. Though the programme has been launched and then relaunched, it remains stalled by bureaucratic inertia.

A year ago Bola Tinubu, the president, declared a state of emergency for food insecurity. Yet promises that savings from the fuel-subsidy removal would be reinvested into farming have not materialised. A programme to give free fertiliser to farmers to boost production was subverted by politicians, who put their faces on the sacks and gave them to loyal voters.

This week the government announced plans to waive import duties on maize and wheat and to set a recommended retail price. The government itself also plans to import 500,000 tonnes of grain. But so far Tinubu’s administration has been unable to stop prices from soaring. Last year Nigerians were already spending 59% of household incomes on food, a higher share than in any other country. How much harder can they be squeezed?

September 04, 2024

The world’s oldest continually operating company has been around for almost 1,500 years

Founded in the year 578, Japan’s Kongo Gumi construction company is recognized as the oldest…
September 06, 2024

‘No light, no food, no fuel - Nigerians suffering deeply’, Yoruba elders tell Tinubu to…

The Yoruba Council of Elders, YCE, Wednesday, told President Bola Tinubu, in an unmistakable term,…
September 06, 2024

If you agree with these 3 statements, you might be a cynic

Renée Onque Being cynical may seem harmless, or even safer than trusting others, but that’s…
September 07, 2024

Woman claims daughter became pregnant by wearing underwear purchased online

A Chinese company recently published a series of texts between its customer service and a…
September 05, 2024

Gunmen kill 16 in fresh attacks on Plateau communities

Fresh attacks, Tuesday night in the Daffo and Kwatas communities of Bokkos Local Government Area…
September 07, 2024

Here’s the latest as Israel-Hamas war enters Day 337

The Philadelphi corridor: What it is and why it matters to Israel-Gaza ceasefire talks The…
August 28, 2024

New study says China uses 80% artificial sand. Here’s why that’s a big deal

The world is running out of sand. About 50 billion tons of sand and gravel…
August 31, 2024

3 days after NFF’s announcement, Labbadia rejects offer to coach Super Eagles

Bruno Labbadia has rejected his appointment as the new head coach of Super Eagles of…

NEWSSCROLL TEAM: 'Sina Kawonise: Publisher/Editor-in-Chief; Prof Wale Are Olaitan: Editorial Consultant; Femi Kawonise: Head, Production & Administration; Afolabi Ajibola: IT Manager;
Contact Us: [email protected] Tel/WhatsApp: +234 811 395 4049

Copyright © 2015 - 2024 NewsScroll. All rights reserved.