Tag: Inflation

  • Inflation Crisis: Nigeria takes measures to tackle soaring food Prices

    Inflation Crisis: Nigeria takes measures to tackle soaring food Prices

    With the onset of the rainy season, the Nigerian Army has deployed troops in several northern states to protect farmers.

    This deployment, announced by the Director of Defence Media Operations, Maj. Gen. Edward Buba, focuses on the North West and North Central regions.

    According to Buba, the presence of troops has enabled farmers to access their lands and proceed with a smooth planting season, aiming for a bumper harvest.

     

    This measure comes as Nigeria battles food shortages and soaring food inflation, which the National Bureau of Statistics (NBS) reports at over 40 percent. Inflation in Nigeria peaked at 34.19 percent in June 2024, slightly decreasing to 33.40 percent in July, based on the NBS’s Consumer Price Index.

     

    The NBS highlighted that the average annual rate of food inflation for the year ending June 2024 was 35.35 percent, marking an 11.31 percent increase from June 2023. Core inflation, excluding volatile agricultural produce and energy prices, reached 27.40 percent in June 2024, up from 20.06 percent in June 2023.

     

    The NBS attributes the rise in food inflation to increased prices of items such as millet, garri, guinea corn, yams, water yams, coco yams, groundnut oil, palm oil, and various types of dried fish.

     

    Edo State recorded the highest year-on-year food inflation at 47.34 percent, followed by Kogi at 46.37 percent and Cross River at 45.28 percent. Conversely, Nasarawa (34.31 percent), Bauchi (34.78 percent), and Adamawa (35.96 percent) saw the slowest rise in food inflation.

    On a month-to-month basis, June 2024 food inflation was highest in Yobe (4.75 percent), Adamawa (4.74 percent), and Taraba (4.12 percent), while Nasarawa (0.14 percent), Kano (0.96 percent), and Lagos (1.25 percent) recorded the slowest rise.

     

    Experts attribute these challenges to insecurity, lack of equipment, and other issues affecting food production in Nigeria.

     

    In response, the Federal Government has implemented measures to curb the crisis, including suspending duties, tariffs, and taxes on the importation of maize, husked brown rice, wheat, and cowpeas for 150 days.

    Additionally, the government has approved the procurement of 2,000 tractors and 1,200 trailers and established a committee to address the ongoing food crisis.

  • How Nigeria’s inflation rate dropped in July – NBS

    How Nigeria’s inflation rate dropped in July – NBS

    Nigeria’s headline inflation rate declined to 33.40 per cent in July, says the National Bureau of Statistics (NBS).

    This is contained in the NBS Consumer Price Index (CPI) and Inflation Report for July, which was released on Thursday in Abuja.

    The figure is 0.8 per cent points lower than 34.19 per cent recorded in June.

    On a year-on-year basis, the headline inflation rate in July 2024 was 9.32 per cent higher than the rate recorded in July 2023 at 24.08 per cent.

    On a month-on-month basis, the headline inflation rate in July 2024 was 2.28 per cent, which was 0.03 per cent lower than the rate recorded in June 2024 at 2.31 per cent.

    “This means that in July 2024, the rate of increase in the average price level is lower than the rate of increase in the average price level in June 2024,” the report read in part.

    The increase in the headline index for July 2024 on a year-on-year basis and month-on-month basis was attributed to the rise in prices of some goods and services at the divisional level.

    These increases were observed in food and non-alcoholic beverages, housing, water, electricity, gas, and other fuel, clothing and footwear, and transport.

    Others were furnishings, household equipment and maintenance, education, health, miscellaneous goods and services, restaurants and hotels, alcoholic beverages, tobacco and kola, recreation and culture, and communication.

    The percentage change in the average CPI for the 12 months ending July 2024 over the average of the CPI for the previous corresponding 12-month period was 30.76 per cent.

    “This indicates an 8.84 per cent increase compared to 21.92 per cent recorded in July 2023.”

    Food inflation rate in July 2024 increased to 39.53 per cent on a year-on-year basis, which was 12. 55 per cent higher compared to the rate recorded in July 2023 at 26.98 per cent.

    “The rise in food inflation on a year-on-year basis is caused by increases in prices of semovita, yam flour, wheat flour, yam, Irish potatoes, water yam, etc.

    “Others are groundnut oil, palm oil, milo, bournvita, Ovaltine, etc.”

    On a month-on-month basis, the food inflation rate in July was 2.47 per cent, which was a 0.08 per cent decrease compared to the rate recorded in June 2024 at 2.55 per cent.

    “The fall in food inflation on a month-on-month basis was caused by a decrease in the average prices of tin milk, baby powdered milk, mudfish, fresh fish, snail, etc.

    “Others are date palm fruit, watermelon, garri, akpu, exercise books, textbooks, turkey meat, minced pork, etc.

    “All items less farm produce and energy or core inflation, which excludes the prices of volatile agricultural produce and energy stood at 27.47 per cent in July on a year-on-year basis.

    “This increased by 6.99 per cent compared to 20.47 per cent recorded in July 2023.

    “The exclusion of PMS is due to the deregulation of the commodity by removal of subsidy,” the report noted.

    The highest increases were recorded in prices of rents, bus journey intercity, journeys by motorcycle, etc.

    “Others are accommodation service, laboratory service, x-ray photog­raphy, consultation fee of a medical doctor, among others.”

    The NBS said on a month-on-month basis, the core inflation rate was 2.16 per cent in July 2024.

    “This indicates a 0.10 per cent increase compared to what was recorded in June 2024 at 2.06 per cent.

    “The average 12-month annual inflation rate was 24.65 per cent for the 12 months ending July 2024, this was 5.81 per cent points higher than the 18.84 per cent recorded in July 2023.”

    The report said on a year-on-year basis in July 2024, the urban inflation rate was 35.77 per cent, which was 9.94 per cent higher compared to the 25.83 per cent recorded in July 2023.

    “On a month-on-month basis, the urban inflation rate was 2.46 per cent, which decreased by 0.003 per cent compared to June 2024 at 2.46 per cent.’’

    On a year-on-year basis in July 2024, the rural inflation rate was 31.26 per cent, which was 8.77 per cent higher compared to the 22.49 per cent recorded in July 2023.

    “On a month-on-month basis, the rural inflation rate was 2.10 per cent, which decreased by 0.07 per cent compared to June 2024 at 2.17 per cent.’’

    On states’ profile analysis, the report showed that in July, all items’ inflation rate on a year-on-year basis was highest in Bauchi at 46.04 per cent, followed by Jigawa at 40.77 per cent, and Kebbi at 37.47 per cent.

    However, the slowest rise in headline inflation on a year-on-year basis was recorded in Benue at 27.28 per cent, followed by Delta at 28.06 per cent, and Borno at 28.33 per cent.

    In July 2024, all items inflation rate on a month-on-month basis was highest in Abuja at 3.91 per cent, followed by Borno at 3.84 per cent, and Enugu at 3.76 per cent.

    “Taraba at 0.71 per cent, followed by Kwara at 0.62 per cent and Ondo at 0.91 per cent recorded the slowest rise in month-on-month inflation.”

    The report said on a year-on-year basis, food inflation was highest in Sokoto at 46.26 per cent, followed by Jigawa at 46.05 per cent, and Enugu at 44.06 per cent.

    “Adamawa at 33.48 per cent, followed by Bauchi at 35.10 per cent and Benue at 36.41 per cent recorded the slowest rise in food inflation on a year-on-year basis.’’

    The report, however, said on a month-on-month basis, food inflation was highest in Borno at 5.07 per cent, followed by Sokoto at 4.99 per cent, and Enugu at 4.17 per cent.

    “With Kwara at 0.51 per cent, followed by Taraba at 0.56 per cent and Ondo at 0.68 per cent, recorded the slowest rise in inflation on a month-on-month basis.”

  • Report says cost of living increased by 19% in June

    Report says cost of living increased by 19% in June

    The Nigerian Bureau of Statistics (NBS) in its latest edition of the ‘Cost Of Healthy Diet’ report for June stated that the National Average Cost of a Healthy Diet increased to ₦1,241.

    The report for June means that the  increase represents  19.2 per cent higher than the amount recorded in the previous month (May 2024, was ₦1,041).

    The Cost of a Healthy Diet (CoHD) is the least expensive combination of locally available items that meet globally consistent food-based dietary guidelines. It is used as a measure of physical and economic access to healthy diets. This is a lower bound (or floor) of the cost per adult per day excluding the cost of transportation and meal preparation.

    It was gathered that Inflation rose to 34.19 per cent in June, an increase of 0.24 per cent from the points when compared to the inflation figure for May 2024 released by the NBS.

    In June 2024, the average CoHD was highest in the South West at ₦1,545 per adult per day, compared to ₦956 per adult per day in North West.

    In recent months, the CoHD has risen faster than general inflation and food inflation.

    At the State level Ekiti, Ogun and Osun States recorded the highest cost with ₦1,640, ₦1,599, and ₦1,557 respectively. Katsina, Kano and Jigawa accounted for the lowest costs with ₦878, ₦926 and ₦937.

    At the Zonal level, the average CoHD was highest in the South West Zone at ₦1,545 per day, followed by the South-South Zone with ₦1,376 per day.

    The lowest average Cost of a Healthy diet was recorded in North West Zone with ₦956 per day.

    Animal source foods were the most expensive food group recommendation to meet in June, accounting for 35 per cent of the total CoHD to provide 13 per cent of the total calories.

    Fruits and vegetables were the most expensive food groups in terms of price per calorie; they accounted for 11 per cent and 17 per cent, respectively, of total CoHD while providing only 7 per cent and 5 per cent of total calories in the Healthy Diet Basket. Legumes, Nuts and Seeds were the least-expensive food group on average, at 7 per cent of the total cost.

    The CoHD has been steadily rising over the past six months, since January 2024.

  • Money supply hits historic high in Nigeria, sparking Inflation worries

    Money supply hits historic high in Nigeria, sparking Inflation worries

    Nigeria’s inflation could worsen as the country’s money supply (M3), measuring the total amount of money in the economy, reached an all-time high of N101.34 trillion in June 2024, according to recent data from the Central Bank of Nigeria (CBN).

     

    The data indicates that M3 increased by 56.15 percent, rising from N64.90 trillion in June 2023 to N101.34 trillion in June 2024. Financial analysts suggest that an increase in the money supply can lead to higher inflation.

     

    On a month-on-month basis, the money supply grew by 2.11 percent, up from N99.23 trillion in May 2024.

     

    This rise in M3 occurred despite the CBN’s efforts at monetary tightening. Since Olayemi Cardoso took over as governor in September last year, the CBN has issued over N1.5 trillion in Open Market Operation (OMO) bills to curb inflation and strengthen the Naira.

     

    As of June 2024, Nigeria’s core and food inflation rates were 34.19 percent and 40.87 percent, respectively, with interest rates at 26.75 percent.

     

    Analysts at FBNQuest commented on the M3 data, stating, “While the increase in CIC may suggest improved economic activity in nominal terms and higher consumer spending, it also highlights the risk of inflation, particularly if money supply growth exceeds real output growth.”

     

    Furthermore, the National Assembly recently raised the Nigerian government’s ways and means advance threshold from 5 percent to 10 percent. As of June 2024, Nigeria’s currency in circulation (CIC) rose to N4.05 trillion, up from N2.60 trillion in the same period last year.

  • Economy bites harder as food prices continue to rise in Nigeria

    Economy bites harder as food prices continue to rise in Nigeria

    The National Bureau of Statistics (NBS), says prices of beans, tomatoes, irish potatoes, garri, yam and other food items witnessed significant price increases in June 2024.

    The NBS said this in its Selected Food Prices Watch report for June 2024 released in Abuja on Tuesday.

    The report said that the average price of 1kg of brown beans increased by 252.13 per cent from N651.12 recorded in June 2023 to N N2,292.76 in June 2024.

    “On a month-on-month basis, 1kg of brown beans increased by 14.11 per cent in June from the N2,009.23 recorded in May 2024.”

    It said that the average price of 1kg of tomatoes increased by 320.67 per cent on a year-on-year basis from N547.28 recorded in June 2023 to N2,302.26 in June 2024.

    “On a month-on-month basis, 1kg of tomatoes increased by 55.97 per cent from the N1,479.69 recorded in May 2024.”

    The report said that the average price of irish potatoes increased by 288.50 per cent on a year-on-year basis from N623.75 in June 2023 to N2,423.27 in June 2024.

    “On a month-on-month basis, the price increased by 51.92 per cent from the N1,595.07 recorded in May 2024.”

    The NBS said that the average price of 1kg of white garri rose by 181.66 per cent on a year-on-year basis from N403.15 in June 2023 to N1,135.51 in June 2024.

    “On a month-on-month basis, 1kg of white garri increased by 1.86 per cent from N1,114.72 recorded in May 2024.

    In addition, the average price of 1kg of yam tuber rose by 295.79 per cent on a year-on-year basis from N510.77 recorded in June 2023 to N2,2021.55 in June 2024.

    “On a month-on-month basis, it increased by 52.87 per cent from N1, 322.36 recorded in May 2024 to 2,021.55 in June 2024.”

    On state profile analysis, the report showed that in June 2024, the highest average price of 1kg of brown beans was recorded in Kogi at N 3,006.43, while the lowest was recorded in Adamawa at N 1,336.11.

    It said that Abuja recorded the highest average price of 1kg of tomato at N3,992.61, while the lowest was recorded in Kebbi at N1,200.

    The NBS said that the highest average price of 1kg of yam tuber was recorded in Lagos at N3,376.54, while the lowest price was recorded in Adamawa at N1,100.

    According to the report, Gombe recorded the highest average price of 1kg of white garri at N1,619.27, while the lowest was reported in Taraba at N900.

    Analysis by zone showed that the average price of 1kg of brown beans was highest in the North-Central at N 2,923.45, followed by the South-South at N 2,630.03.

    “The lowest price was recorded in the North-West at N1,647.03.”

    The South-West and South-East recorded the highest average price of 1kg of tomatoes at N3,261.84 and N2,852.59, respectively, while the lowest price was in the North-West at N1,411.16.

    The report said that the South-West recorded the highest average price of 1kg of yam tuber a tN2,745.80, followed by the North-Central at N 2,440.35, while the North-West recorded the lowest price at N1,238.49.

    The NBS said also that the South-West and the North-East recorded the highest average price of 1kg of white garri at N1,199.62 and N1,155.63, respectively.

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    “The North-Central recorded the lowest price of 1kg of white garri at N1,055.87.”

    The federal government in a bid to address the incessant increase in food prices and ensure food security recently granted a 150-day duty-free import window for food commodities.

    The suspended duty tariffs and taxes will be on the importation of certain food items across the land and sea borders which include maize, cowpeas, wheat, and husked brown rice.

    However, experts have suggested more sustainable measures such as addressing the issue of insecurity, foreign exchange and transportation costs to address the soaring food prices and ensure food security.

  • IMF cuts Nigeria’s economic growth forecast to 3.1%

    IMF cuts Nigeria’s economic growth forecast to 3.1%

    The International Monetary Fund (IMF) has cut its forecast for Nigeria’s economic growth in 2024 to 3.1 per cent.

    The downgrade is contained in a newly released report ‘in the July 2024 World Economic Outlook’ published Tuesday.

    The IMF cited a weaker growth recorded in the first quarter of the year, Q1’24 as reason for the new forecast.

    The downgrade represents 0.2 percentage points below the earlier forecast of 3.3 per cent.

    The downgrade followed weaker-than-expected Gross Domestic Product, GDP, and growth recorded by the country in Q1’23.

    The IMF however retained its 3.0 per cent forecast for Nigeria’s economic growth in 2025.

    It would be recalled that d ata from the National Bureau of Statistics (NBS), showed that Nigeria’s Gross Domestic Product (GDP), growth dropped, quarter-on-quarter, QoQ to 2.98 per cent in Q1’24 from 3.46 per cent in the fourth quarter of 2023, Q3’23.

    As a result of the lower forecast for Nigeria’s economic growth, the IMF also downgraded its forecast for Sub-Saharan economic growth in 2024 to 3.7 per cent from the April WEO forecast of 3.8 per cent. It however raised its economic growth forecast for the region in 2025 to 4.1 per cent from 4.0.

    “The forecast for growth in sub-Saharan Africa is revised downward, mainly as a result of a 0.2 percentage point downward revision to the growth outlook in Nigeria amid weaker than expected activity in the first quarter of this year,” the IMF said.

    For the global economy, the IMF retained its growth forecasts of 3.2 per cent in 2024 and 3.3 per cent in 2025.

    The IMF said: “The Global Economy in a Sticky Spot Global growth is projected to be in line with the April 2024 World Economic Outlook (WEO) forecast, at 3.2 per cent in 2024 and 3.3 per cent in 2025.

    “However, varied momentum in activity at the turn of the year has somewhat narrowed the output divergence across economies as cyclical factors wane and activity becomes better aligned with its potential.

    “Services price inflation is holding up progress on disinflation, which is complicating monetary policy normalization. Upside risks to inflation have thus increased, raising the prospect of higher-for-even-longer interest rates, in the context of escalating trade tensions and increased policy uncertainty.

    “To manage these risks and preserve growth, the policy mix should be sequenced carefully to achieve price stability and replenish diminished buffers.”

    The development comes on the heels of Nigeria’s inflation figure reaching a new high, hitting 34.19 % for June 2024, according to the latest data from the NBS.

    This is an increase of 0.24% compared to the inflation figure for May 2024 released by the NBS.

    “In June 2024, the headline inflation rate increased to 34.19% relative to the May 2024 headline inflation rate which was 33.95%. Looking at the movement, the June 2024 headline inflation rate showed an increase of 0.24% points when compared to the May 2024 headline inflation rate,” the NBS said in its Consumer Price Index (CPI) – which measures the average change over time in the prices of goods and services consumed by people for day-to-day living – released on Monday.

    “On a year-on-year basis, the headline inflation rate was 11.40% points higher compared to the rate recorded in June 2023, which was 22.79%.”

    According to the NBS, the headline inflation rate, year-on-year basis, jumped in June 2024 when compared to the same month in the last year.

    It said on a month-on-month basis, the headline inflation rate in June 2024 was 2.31%, 0.17% higher than the rate recorded in May 2024 (2.14%).

    “This means that in the month of June 2024, the rate of increase in the average price level is higher than the rate of increase in the average price level in May 2024,” the agency said.

  • Measures to tackle inflation working – CBN Governor

    Measures to tackle inflation working – CBN Governor

    The Governor of Central Bank of Nigeria (CBN), Yemi Cardoso, has reassured Nigerians that the bank’s economic reforms were yielding significant results.

    Cardoso said that this had led to a 50 per cent reduction in month-on-month inflation between February and May.

    He made the remarks during the interactive session at the Business Day CEO Forum 2024 on Thursday in Lagos.

    Addressing the setting of interest rates, Cardoso said that they were determined by the independent Monetary Policy Committee, comprised of data-driven experts who prioritise empirical evidence over emotions.

    He highlighted the committee’s commitment to combating inflation through informed decisions.

    “Interest rates are not set by the governor of the central bank.  Interest rates are set by the Monetary Policy Committee.

    “And thankfully, we have a monetary comments policy committee comprised of independent minded thinking people.

    “And these are people who are not given to emotion. What they look at is data. They look at data, and they basically go along with what the data says.

    “The FCC has made it very clear that for them the major issue is telling you and I’ve also made it very clear that they will do whatever is necessary to tame inflation,” he said.

    Cardoso acknowledged the challenges posed by injecting substantial funds into the economy, including N27 trillion and N10.5 trillion interventions under the Ways and Means framework.

    He credited timely rate adjustments for stabilising the national currency against fluctuations.

    Looking forward, Cardoso expressed optimism that continued adherence to effective policies would lead to further stabilisation and eventual reduction in interest rates.

    During the forum, Cardoso projected a positive growth trajectory for Nigeria while lamenting missed opportunities in the past due to inadequate measures.

    He stressed the importance of sincerity, collaboration, and transparent communication in achieving sustainable development.

    He explained the role of transparent communication in dispelling public misunderstandings and fostering national growth.

    Cardoso called for ongoing improvements in monetary and fiscal communication while urging stakeholders to uphold best practices.

    He also outlined the CBN’s strategies, including addressing foreign exchange backlog, interventions in the oil and gas sectors and plans for bank recapitalisation.

  • Citizens groan as prices of foodstuffs soar

    Citizens groan as prices of foodstuffs soar

    In tune with the extant global trends, Nigeria is experiencing an unprecedented increase in the cost of basic food items. Findings in Kaduna, Kano and Katsina States have shown that Nigeria was not an exception.

    For instance, a check conducted in Kaduna revealed that the surge was particularly notable in the prices of rice, bread, sugar, garri, beef and eggs, amongst others, which are staples in most homes.

    Also, the rising cost has had an impact in the living standard of the residents as the majority of the homes now find it formidably challenging to afford three square meals.

    It was also gathered from the Abubakar Gumi Central market and other markets within Kaduna city that the price of Mama Gold rice had risen to about N75,500 per bag, while a 50kg Stallion, Optimum brands now sell from N77,000 to N80,000.

    Also, a loaf of bread was now being sold between N1,000 and N2,500 depending on the brand and quality.

    A measure (mudu) of ‘white garri’ that used to sell for N400 was now sold for between N1200. while a measure of ‘yellow garri’ sold for N600 now goes for  between N1300 and N1,500.

    Similarly, a crate of egg that was selling for N3000 hitherto,  now sells for between N4,000 and N4,500 depending on the size.

    Also, a kilogram of meat (beef) formerly sold for N3,000 before was now being sold at N5,000.

    Meanwhile, farmers in parts of the state have attributed the high costs of foodstuffs to the fuel subsidy removal.

    Some of the farmers who spoke to NAN in separate interviews in Kafanchan blamed the hike in the prices of foodstuffs on the high cost of transportation, occasioned by the removal of fuel subsidy by the Federal Government.

    Ishaya Chingali, a large-scale farmer, said inflation had also led to the high cost of farm inputs like fertilizers and herbicides.

    “If they can take care of the cost of transportation, the high cost of food stuff will be addressed by 50 percent,” he stated.

    On his part, Kure Kade, President, Organic Ginger Farmers Association, said the only way out was for the government to subsidize farm inputs.

    He said Nigeria was capable of feeding itself without necessarily importing any food stuff.

    In a related development, the Kaduna State Government said it had distributed farm inputs, farm implements as well as agro-processing equipment to 40,000 smallholder farmers to boost food production.

    Murtala Dabo, the Commissioner, Ministry for Agriculture, made this known in an interview in Kaduna.

    The items were distributed under the government’s  ‘A Koma Gona’ (Back to Farm) initiative.

    According to him, the programme targets beneficiaries in the 23 local government areas of the state.

    He said the state was the largest producer of ginger, maize, as well as tomatoes in the country, lamenting that the farmers suffered post-harvest losses such as tomatoes and ginger.

    Dabo assured that the state government would revisit the now stalled tomato processing plant in Ikara to address the losses suffered by tomato farmers in the area and other surrounding local governments.

    He said, “Agriculture remains the backbone of the economy, providing employment and sustaining livelihoods. The state is blessed with huge agricultural potential

    “Smallholder farmers and small-scale agro-processors have been facing difficulties due to the current economic challenges in the country.

    ”This category of farmers is very critical in our quest to ensure food security.

    “It is for this reason that the government has come up with the ‘Tallafin Noma – A Koma Noma’ as part of our Sustainable Livelihoods through Social Interventions and Economic Empowerment Initiative.

    “Under this “A Koma Gona” (Get Back to Farm) component, the Ministry for Agriculture was mandated to target a minimum of 40,000 smallholder farmers and farmers’ cooperatives across the 23 LGAs.”

    According to Dabo, the ‘Tallafin Noma programme’ includes the distribution of inputs for crop and livestock production,  crop production, improved maize seeds, agrochemicals, NPK and Urea fertilizers.

    “For livestock production (poultry), 30 day-old chicks with four bags of feed and drugs are distributed, while 50 jumbo juveniles (catfish) with two bags of feed and drugs are distributed for fisheries.

    “To boost micro-mechanisation of the agriculture sector in the state, power tillers and accessories were distributed to farmer cooperative groups.

    “This is a crucial step towards increasing production and productivity in our farms,” he added.

    The commissioner added that ‘Knapsack’ sprayers with Personal Protection Equipment (PPE) were also given to the farmers for agrochemical and liquid fertilizer application on their farms.

    “For the agro-processors, vegetable grinders are distributed to individuals, while hammer mills, haulers and threshers are distributed to cooperative groups as group assets.

    “These processing machines would add value to our agricultural produce and improve the livelihoods of individuals and groups involved in agro-processing activities,”Dabo said.

    To reduce  herder-farmer conflicts in the state, he said the state government has commenced the Livestock Development Project (L-PRES).

    He said bringing the project to the state had also helped to tackle the frequent clashes between farmers and herdsmen.

    Dabo said that the project would focus on the component of conflict management aimed at finding a lasting solution to the problem.

    Meanwhile, a farmer in Kaduna State has appealed to the government at all levels to enhance agricultural mechanization.

    He also urged them to replace the animal-drawn plough system for land preparation and other agricultural production processes to boost food security  and wealth generation.

    Malam Ahmed Abubakar, a member of the Albarka-Shika Farmers Cooperative Society,  made the appeal in an interview in Zaria.

    He said, “Farming is a business; the government at sub-national levels should woo and entice youths by providing simple labour saving devices in farming to strengthen production.

    “These tools and devices are not affordable to many youths and small-scale farmers; we are in the 21st century,so, it is high time to do away with cutlasses and hoes and embrace full-scale mechanized agriculture.

    “Bandits and other criminal elements would not allow the small -scale farmers to keep cattle for traditional plough.

    “If the  farmers have these machines at their homes, it will not be easily stolen like cattle,’’ he said.

    Abubakar said the initial intervention by the Federal Government for wheat farmers under dry season farming had gladdened the hearts of the farmers across the state.

    Abubakar said no fewer than 10,000 farmers received improved wheat seed varieties, herbicides and fertilizer and other inputs for cultivation of a one hectare field at 50 per cent discount.

    He, however, said that the gesture had greatly increased the production of wheat in Kaduna State during the last season.

    The farner added that the intervention, which assisted many peasant farmers in the state, had also rekindled their hope as the Federal Government was set to replicate the support to additional 40,000 maize and rice farmers.

    He said the 40, 000 farmers who were  registered by the Federal Government through the Kaduna State Agricultural Development Agency (KADA) for the dry season farming of rice and maize did not receive the inputs.

    However, Abubakar said there were insinuations that the cohorts captured for dry season intervention would receive the inputs for wet season farming alongside other commodity growers; saying, ” this also has not been materialized.

    “It is an established fact that the early distribution of inputs to farmers boosts production and increases wealth generation to farmers.

    “The major problems are insecurity and high cost of inputs,’’ Abubakar said.

    He lamented the delay in the distribution of the fertilizer donated by the Central Bank of Nigeria to the Federal Ministry of Agriculture and Food Security.

    According to him, the delay in the distribution of the inputs by the government and high inflation rate in the country had increased the cost of fertilizer and other inputs, which have a “devastating effect on food security.”

    While speaking on the policy of the Federal Government on the all-year round food production, Abubakar lamented, ” Beside the pronouncement, we are yet to see any tangible effort of the government on this.”

    He added that dry season farming was done with water from the stream and dams.

    Abubakar said, “But the available dams were not desilted, new ones were not created while modern equipment and other simple labour saving devices were also not put in place.”

    Abubakar, therefore, urged the governments at sub-national level to increase efforts on providing improved quality seeds to the farmers, which is the bedrock of sustainable food production.

    He said the Institute for Agricultural Research used to provide one of the cheapest high quality seeds to the farmers, decrying, ” Now the prices of such improved seeds have skyrocketed.

    “In private seed companies, the  cost of improved maize seed per hectare ranges between N64, 000 to N120, 000; hence the need for government’s intervention on this and other inputs.

    “Government should enhance the reintroduced GES and totally abolish the anchor borrowers’ scheme,’’ he said.

    Corroborating, Alhaji Nuhu Aminu, Chairman, All Farmers Association of Nigeria (AFAN) Kaduna State Chapter lamented that banditry and kidnapping were major impediments to food security in the state.

    He said the recent abduction of Ashiru Sherehu, Village Head, Tunburku,  Giwa LGA, Kaduna State at his farm on Saturday indicated the impact of worsening insecurity to agriculture and food security.

    He said that sustainable agricultural growth and development can only be achieved in an environment that was secure and peaceful.

    According to him, insecurity in northern parts of Kaduna has threatened food production in the state as most of the large-scale farmers have abandoned their farms in areas such as Birnin Gwari, Giwa, and Igabi LGAs.

    “The few that sustain farming now scavenged on little small-scale farms around Soba, Kubau, Ikara , Makarfi and Kudan LGAs,”he added.

    Aminu commended the Federal Government for subsidising inputs for dry season farming through the National Agricultural Growth Scheme and Agro Pocket (NAGS –AP) initiative.

    He, however, urged the government to sustain and upscale the initiative to strengthen food security and job creation.

    According to him, the NAGS-AP was one of the best government initiatives that target smallholder farmers, thereby improving food production.

    Alhaji Nuhu Aminu, Chairman, All Farmers Association of Nigeria  (AFAN)Kaduna State chapter, attributed the high cost of food items in the state to inadequate and late supply of farm inputs.

    Aminu made the assertion during an interview with the News Agency of Nigeria (NAN) in Kaduna.

    He explained that the farmers were not able to start farming early even with the rains due to the high cost of fertilizer and the late distribution of seedlings and pesticides among others.

    “This led to poor yields causing the peasant farmers to sell their surplus produce to middlemen who now determine the prices in markets.

    “But, with the Federal Government’s initiative to distribute farm inputs to the farmers this year using their mobile phones, we are hopeful that there will be bountiful harvests, ” he said.

    Aminu said the Federal Government has commenced the distribution of farm inputs to the farmers in some local governments of the state, adding that more farmers would be captured in the programme.

    Aminu explained that the items included fertilizer, pesticides and seedlings which would be given at subsidized prices to the farmers, with the Federal Government  paying half the price of the items.

    ”This will help bring down the prices of food items, “he said.

    In a bid to secure the farmers and the farms, the Police Command in Kaduna State Government has donated 100 motorcycles to it.

    The command also said it has has p in place elaborate plans to secure farmlands for the farmers to farm without fearing any security threats.

    The command’s Public Relations Officer, Mansir Hassan, told the News Agency of Nigeria (NAN), that the gesture by Gov. Uba Sani was aimed at further protecting farmers across the state.

    According to Hassan, the motorcycles had since been distributed to the Divisional Police Officers in the affected areas where farmers are no longer apprehensive to go to the farms.

    He said the essence was to make sure that the farmers were protected in their farmlands when farming in the insecurity-prone areas of the state.

    Hassan said the plain-clothes security personnel and vigilance  services were part of the plan.

    He said that the initiative would boost the farmers’ morale to troop to the farms without harbouring any fear.

    He said that the Commissioner of Police,Mr Ali Dabigi, has a lot of plans with the support of the state government, saying that they would yield positive results.

    In Kano State, some agriculture experts have advised the Federal Government to engage in discussions with farm produce marketers and large-scale farmers to curb the soaring food prices in the country.

    Some of the experts spoke with the News Agency of Nigeria(NAN) in Kano on measures to stem the tide of skyrocketing food prices and roof-top inflation.

    Alhaji Nasiru Musa, the Managing Director of ANS farms limited, said that engaging legitimate farm-produce marketers and large-scale farmers was the simple and feasible solution to the soaring food prices.

    According to him, it is very difficult to differentiate between foodstuff hoarders and large-scale farmers and legitimate farm-produce marketers who have large warehouses where they keep their commodities before distributing them to other parts of the country.

    He advised the government at all levels to purchase the foodstuffs in large quantities directly from the large-scale farmers and resell them to the masses at affordable rates throughout all the local government areas.

    “I appeal to the government also to discourage bulk purchases by individuals or groups, by doing this, the prices of food can be controlled to some extent and food will reach the poor,” he said.

    Abubakar Sani, a retired director, state ministry of Agriculture, who also called on federal government to sit with large-scale farmers particularly in the North, said that farm products were being exported to neighbouring African countries due to the weak value of the Naira

    He further urged federal and state governments to support farmers with solar-powered pumps, fertilisers, seeds, extension services, pesticides, among others.

    Mahmud Garba, a lecturer, explained that rising cost of living and escalating food prices have been the main challenge that the majority of Nigerians were battling with at the moment.

    According to him, the rise in the cost of staple food and other products has affected the purchasing power of many Nigerians, as it is now very difficult for the majority of households to afford daily meals.

    Sanusi Bature, Director General Media to the Kano State Governor, said that the state governor had approved the procurement of fertiliser, valued at over N5bn, to show the state’s commitment to food sufficiency, through agricultural transformation.

    He said that the move was in fulfilment of Yusuf’s campaign promise to support smallholder farmers, especially in rural areas, toward a high yield of crops in the 2024 rainy season.

    “The fertiliser approved for purchase will complement those already produced by the state-owned Kano Agricultural Supply Company and would be made available to farmers at a subsidized price within the state.

    “Governor Yusuf had previously purchased grains, worth billions of naira and distributed them to the vulnerable people in the state, to cushion the economic hardship faced by a significant number of people in the state,” he said.

    On economy,Abdulfatah Adewale, a financial expert also advised the Federal Government to explore the reduction of taxes and duties and support the consumption of locally produced goods and services to address the economic challenges facing Nigerians.

    He urged the federal government to come up with fiscal policies like tax reduction to encourage companies to invest, expand and employ more workers.

    Adewale also Advised the government to equally reduce the duties paid by importers on some goods, give incentives to consumers of locally produced products and pump in money into the system.

    In Katsina, a cross section of the residents of Katsina metropolis expressed concern over the continued hike in the prices of foodstuffs and other goods in the state.

    Speaking to the News Agency of Nigeria (NAN) in Katsina, the residents said the hike in prices of foodstuffs, coupled with other economic hardship has pushed many people into poverty and hunger.

    Malam Ibrahim Isma’il, a civil servant, said before the current hardship, his salary can sustain him to another salary, but now it can not provide his family with food for two-weeks.

    A trader, Malam Bala Baba said, “To be honest with you, life is difficult for many of us, because business is no longer moving because of the economic hardship, and our businesses are collapsing.

    During a visit to some of the markets in the city, NAN reports that the quantity of Maize (mudu) which was sold a few months ago at N1,200, is now N1,600.

    The local rice sold at N3,600, is now N4,000, beans sold at N3,400 per measure, is now N4,800, while a measure of cereal sold at N1,600 is now N2,200.

    Also at Chake market, a bag of Maize is sold at N89,500, cereal at N86,000, millet N88,000, beans N165,000, Suyer beans N89,500, while a bag of local rice is N58,000.

    Although some of the residents attributed the hardship to the current economic situation in the state, some said the insecurity also is contributing.

    Recall that recently, the Katsina State government in an effort to boost the agricultural sector, recruited 722 extension workers and provided them with motorcycles and other equipment.

    During the event, Gov. Dikko Radda said, “Second way of fighting poverty is to improve productivity. Agriculture is our major occupation, that’s why we created Katsina State Irrigation authority.

    “The aim is to have all year-round irrigation farming in the state, that will reduce redundancy, and keep everybody busy.

    He pointed out that to achieve or increase productivity , farmers have to be sensitised on farming as a business.

    According to the governor, when he came to power, there were only 72 extension workers in the state.

    “We gave each of them a motorcycle and other equipment to enable them move around to enlighten farmers on the way to improve their productivity.

    “We also launched the sales of about 20,000 metric tons of fertilizer to farmers in the state at a very subsidised price.

    “These are some of the things that we are putting in place to engage the farmers, the youths and the locals to be more productive, reduce the level of poverty and improve their livelihood.”

    The governor also revealed that the state government, through the KT-CARES, has supported over 6,100 farmers in the state.

    Recently, the state government in collaboration with an NGO, Mercy Corps embarked on herder-farmer conflict resolution, especially across some front-line areas.

    The dialogue, organised through the Conflict Mitigation and Community Reconciliation in North-West Nigeria (CMCR-NW) project.
    was aimed at promoting locally-driven peace initiatives through interest-based negotiation.

    Speaking at the event, the state’s Commissioner for Agriculture and Livestock Development, Prof. Ahmed Bakori, said the dialogue was a necessary sequel to the prevalence of such conflicts during the rainy season.

    “This situation poses a challenge to safe farming and grazing activities, and affects agricultural activities leading to minimal harvests and overall output.

    “It then becomes imperative for stakeholders to brainstorm and design appropriate strategies to prevent and where possible mitigate tensions during the forthcoming farming season.

    “With this development, farming activities across the front line areas will hold for this rainy season,” Bakori assured.

  • Nigeria will continue to be in trouble in terms of food – Mile 12 Market Chairman

    Nigeria will continue to be in trouble in terms of food – Mile 12 Market Chairman

    Chairman of Mile 12 Market in Lagos State, Shehu Usman Jubrin has said Nigeria will continue to be in trouble in terms of the prices of food items in the country.

    TheNewsGuru.com (TNG) reports Jubrin said this when he featured in Channels Television’s The Morning Brief on Monday.

    The Mile 12 Market Chairman said that unless something is done about insecurity faced by farmers, the situation about food inflation will only get worse.

    Jubrin pinned the recent high cost of tomato, pepper, and other perishable items on insecurity and other factors. He stressed that insecurity in the North is a major factor for the hike in the cost of the items.

    “The bone of contention, the real fact is just insecurity. Let me tell you, that’s the truth. And there’s absolutely nothing the country will do. This price hike will continue. They are still buying tomato, at the rate of N1,000 for three pieces.

    “Ninety-nine per cent of the people in IDP camps are farmers. They don’t know anything apart from farming – both male and female. The people who are on the farm and are farming with one eye closed are just about 1,500 out of like 5,000 farmers we have across the whole country,” he said.

    According to Jubrin, some of the farmers negotiate with and pay bandits before they can go to their farms to harvest the products.

    “In those places where you are getting all these items, there are negotiations between them and the bandits who ask them, ‘How much are you going to pay me to harvest and bring to the market?’.

    “So, for as long as those people are in IDP camps, the country will continue to be in trouble in terms of food items,” Jubrin said.

    He also linked it to other factors including supply shortage from the Northern part of Nigeria to the South.

    “Let me just talk about tomatoes first. From November, December, January, February, March, and April, up to May, you have tomatoes from the North.

    “You have danja, danjumi, kadawa, Kano and then Katsina States. This is the off-season now, so we expect tomatoes from Ilaro, Ogbomosho, Abeokuta, and Osun to come to Lagos, you know, and also part of Cameroon. That is a kind of substitute for the Northern one.

    “But unfortunately, it’s late: the one from Cameroon, the one from Abeokuta and Ogbomosho. And as we approach the festive period, tomatoes will be expensive. The northern tomatoes are finished and we don’t have substitutes from the south,” he said.

    Jubrin also blamed the situation on pests, saying the diseases have led to low yields.

  • Sense and nonsense of Nigeria’s economic crisis – By Dakuku Peterside

    Sense and nonsense of Nigeria’s economic crisis – By Dakuku Peterside

    Nigeria is probably in the worst economic crisis of a generation, screamed The New York Times on June 11th, 2024. Two other influential global publications, Foreign Affairs and The Economist, had earlier said the same thing under different headlines. Although Nigeria’s economy is not yet in a recession, all other economic indicators have gone south, and the curve is not bending in the short run. Statistics on inflation (above 33%), youth unemployment (above 50%), poverty levels (over 133 million multidimensionally poor), the value of the Naira (over 200% decline against dollar in the past year), education (18.3 million out of school children), healthcare (inadequate health facilities and professionals), insecurity (144th position in the 2023 safest countries in the world ranking), and homelessness (24.4 million people without a home) are frightening. More than ever, Nigeria needs crisis leaders to turn things around.

    Great leaders have always come up to guide their countries out of the worst crises throughout history .The American people looked up to Barack Obama in 2008 to lead the nation through its worst economic crisis since the Great Depression. He conducted many consultations and made critical but well-considered decisions to lay a new economic foundation . We are in an “economic war’ and cannot use the tools applicable in normal times.

    Leadership during normal times is different from leading in the storm which is the subject of my forthcoming book. The expertise and skill set required for both cases are different. The dynamism and multiplicity of socio-economic and political factors converging to create the Nigerian volatile ecosystem are such that effective crisis leadership is needed at all governance strata.  Although required in normal times, these crisis leadership competencies are most relevant during a crisis. They include sensemaking, effective decision-making, team coordination, facilitating learning, emotional intelligence, and effective communication. It is the masterful use of these competencies that makes great crisis leaders.

    The commentariat have attributed our present economic crisis to a cycle of thoughtless policies, squandering as governance, negative or low investment in innovation, uncoordinated economic thinking and placing of politics above commonsense economic frugality. It is also true that our poor understanding of the interplay of global events and its impact on local economic factors also contributed. The consequence is the country’s inability to respond to vulnerabilities, shocks and opportunities.

    Nigerian leaders need to make sense of these complex circumstances. The situation requires a more focused perspective on historical and immediate causes and possible solutions to the current crisis. Sensemaking is critical to effective crisis leadership, especially in complex and diverse environments like Nigeria. Sensemaking involves gathering information and putting it in context, exploring different perspectives to develop a coherent narrative, and interpreting and understanding complex, ambiguous, and rapidly changing situations to guide decision-making and action. During this economic crisis, sensemaking allows leaders to comprehend its scope, identify its root causes, anticipate its impacts, and develop appropriate responses. This piece will focus on and explore sensemaking as the first step in crisis leadership.

    Our leaders must develop a contextual understanding and historical context of our economic crisis. Nigeria is characterised by significant cultural, ethnic, and economic diversity. Effective crisis leadership requires leaders to understand these complexities, how they influence the crisis, and the potential responses. Economic crises in Nigeria often have roots in historical issues such as colonial legacies, policy missteps, structural inequalities and global turbulence . Leaders must consider these historical contexts to grasp the crisis’s nuances fully. They must identify and interpret economic, social, and political signals.

    Furthermore, the way our leaders frame this economic crisis matters. We often have the tendency to reduce complex issues to one or two narratives . This is what my Kellogg Professor, Loran Nordgren calls ” narrow framing”.  Based on the robust content analysis we carried out, we identified the dominant frame of this economic crisis by the government as ‘inherited and requires tough actions that will cause some pain to the citizens in the short run, but the pain is necessary for achieving better economic prosperity in the medium to long term’. The danger of this framing is that it sounds more like an excuse than a creative strategy to upturn our economic woes. This frame lulls our leaders to the proverbial sleep of inertia – inaction when there is fire on the mountain.

    How this economic crisis is communicated to the public and stakeholders influences their perceptions and reactions. Effective crisis leadership involves framing  and communicating the situation in an understandable and actionable way for diverse audiences. Little wonder Nigerians are at a loss regarding our political class’s perceived poor choices. The government needs to rethink its crisis communication strategy.

    Since economic crises are by their very nature dynamic and unpredictable, leaders must update their understanding of the issues, modify their response strategy and adapt their strategies accordingly. Involving various stakeholders, including experts, community leaders, and affected populations, enriches the process, and ensures more comprehensive insights. This comprehensive insight allows crisis leaders to make informed decisions that cater to the greater good. Things like government being more prudent, quitting luxury spending, reducing taxes to encourage savings and investment, fixing insecurity to encourage inflow of investment and borrowing less from external sources, are easily intelligible choices.

    To illustrate the importance of deep insight in Nigerian leadership during the economic crisis, let us examine three recent crises. The first is the economic recession of 2016. The 2016 recession was triggered by a significant drop in oil prices and compounded by policy challenges and security issues. Our Leaders needed to interpret the interconnected causes, including global oil dynamics, domestic economic policies, and security concerns in the Niger Delta. The Economic Recovery and Growth Plan (ERGP) was developed as a response, focusing on diversification and stabilisation. While the ERGP provided a strategic framework, the process highlighted the need for consistent policy implementation and addressing underlying structural issues. This still needs to be done, and our leaders have yet to learn any lessons they could apply in subsequent crises.

    The second is the current economic crisis that has been exacerbated due to the implementation of fuel subsidy removal policy. Every Nigerian knows the need to remove fuel subsidies, but it takes work. Periodic attempts to remove fuel subsidies faced public resistance due to their impact on living costs and inflation. Our Leaders needed to balance fiscal sustainability with socio-economic impacts. Understanding public sentiment and economic realities was crucial in framing and communicating subsidy reforms. Subsidy removals were often met with protests, highlighting the need for transparent communication, phased implementation, and accompanying social protection measures.

    However, the hurried end of the subsidy without mapping the multiple scenario implications and making adequate provisions to cushion the impact threw our economy into a whirlwind of desperation, and the repercussions have been devastating, as indicated in the above economic statistics. Developing multiple scenarios based on different interpretations of the crisis helps prepare for various potential outcomes. Effective sensemaking includes proactive risk management and contingency planning. Lack of effective policy management is creating more public angst than the actual policy itself.

    The third is the unintended devastating impact of harmonisation of the exchange rate during a period of dollar crunch and scarcity without remedial provisions for the inflationary implications of a devalued Naira in an import-dependent economy. The Naira has collapsed by over 200% in the past year, forcing the prices of all imported goods to follow suit. The combo of exchange rate-induced inflation and subsidy removal inflation has resulted in the worst inflationary rate in a generation in Nigeria.

    Crisis leaders are problem solvers. They can adjust plans, policies, and responses as new information is gathered or situations change. This means listening to stakeholders, voices of reason, and experts. The reoccurring question throughout this economic crisis is: Where are our crisis leaders? Political leaders are poor crisis leaders because they fail to recognise the warning indications of impending challenges and rarely put the lessons they have learnt from past crises into practice.

    Decision-making in a position of leadership is challenging. It is more significant when a decision impacts the lives of numerous individuals. Our leaders at various strata have yet to appreciate this. Decisions are often made without the rigour of clear thinking or fall back to the narrow framing of A or B. Lack of strategic foresight and thinking abilities manifest in most of our decisions.

    Therefore, Nigerian leaders must deeply analyse the crisis’s economic, social, political, and cultural dimensions. This involves understanding both macroeconomic trends and grassroots realities. They should engage with various stakeholders to enrich the sensemaking process. Collaboration with experts, community leaders, and international partners provides diverse insights and fosters collective action. Sensemaking is not a one-time activity but a continuous process. Leaders must remain open to new information, willing to reassess situations, and ready to adapt strategies as the crisis evolves. Transparent and consistent communication will help them in managing public perceptions and reactions.