President Muhammadu Buhari has unveiled that his administration is worried over the sudden increase of food prices in Nigeria.
In a statement by his Senior Special Assistant on Media and Publicity, Garba Shehu, on Wednesday, the president regretted that the increase in prices of food came at a time when the economy was already being negatively affected by the global coronavirus pandemic.
Buhari gave Nigerians the assurance that the situation would pass as his administration had already begun seeking and putting in place measures to ameliorate the situation.
The statement reads;
“While Providence has been kind to us with the rains and as such an expectation that a bumper harvest would lead to crashing of food prices and ease the burdens on the population, government’s concern is that the exploitative market behaviour by actors has significantly increased among traders in the past few years and may make any such relief a short-lived one.
“This year has indeed tested us in ways that globalization has never been tested since the turn of the century. These challenges have disrupted lives and supply chains all over the world, and Nigeria has not been spared.
“The effect has been deeply felt in the delays encountered in the procurement of raw materials for local production of fertilizer (damaging standing crops before harvest) and the speculative activities by a number of rice processors who are ready to pay for paddy at any price to keep their mills running non-stop.
“But of all these problems, the most worrisome are the activities of “corrupt” middlemen (with many of them discovered to be foreigners) and other food traders who serve as the link between farmers and consumers found to be systematically creating an artificial scarcity so that they can sell at higher prices.
“In dealing with these problems, the administration has, in line with its ease of doing business mantra, avoided imposing stockholding restrictions, in order not to discourage investments in modern warehousing and cold storage.
“The President has just approved the release of food items from the strategic reserves, including 30,000 tons of maize to animal feeds producers to ease the high cost of poultry production.
“President Buhari’s administration has raised some of these issues with the various food producer associations involved, particularly those of rice and other grains. “With their cooperation, the high food prices should soon be a thing of the past.
“In addition, investments in the agro-allied sector by the private sector will significantly increase domestic production of farming inputs especially fertilizer, further crash prices, create employment and ease the pressure on our foreign reserves.”