Downward Shift; Causes of Soaring Food Prices in Nigeria
Downward Shift; Causes of Soaring Food Prices in Nigeria
The recent data released by NBS further confirmed the skepticism from Nigerians, questioning the pronouncement of the Minister of Finance and her proponents that the economy is out of recession few weeks back.
To the man on the street, the phrase "Out of Recession" means affordable food items among other basic human's need. It is disturbing projecting a downward trends of inflation rate as against unbearable high food prices in a nation where citizenry lives below a dollar per day.
Xraying the indices for 15.98% dropped for eight varied consecutive time since January 2017 without a slight effect positively on food items but rather puncturing the consumer purchasing power to acquiring a "must have" daily commodity that inherently tentacles into every fabric of our humanity call for attention.
No society can survive without food, beside being a surviving component, and routine medicine for all and sundry, it is a basic fundamental human right that should be adequate, safe, nutritious, accessible and affordable.
Come to think of it, inflation refers to rise in prices relatively to flow of goods offered for sales. Whenever demand exceeds supply, inflation sets in. By the same token, lack of flow of food commodities to the market for sale relatively exacerbate rise in food prices hence pushing demand for food items over supply to the market. Would it be appropriate saying this is the reason why Nigeria is the second most expensive place to purchase food products?
Technically, economics call it downward shift in supply, one of the two causes of inflation.
The solution to the challenges is not a rocket science, but lies within revamping the system while putting first thing first. It begins by asking the right question; how do we get here, where do we miss it, why, what and when do we really experience such mishap?
Common sense shows that reversing the shift in supply is paramount to halting escalating food prices. This entails processes, structure and overhauling the system. The starting point is identifying the factors for this shift which are primarily;
Inaccessibility of food products to mouth of those that needed it most or the market
Lack of robust centralized marketing board stepping from the Community Development Area, CDA, up to the Local Government Areas to the State, Region and Federal level
Imbalance between food exportation and domestication
Prioritizing export of food items at the expense of food domestication
Prioritizing corporate farming over rural farming
Zero reward system, compensation plan and punitive measures for agriculture extension workers
Lack of centralized laboratory channels from the grassroot to the federal level in assessing quality and safety of food commodity
Lack of making agriculture a sexier adventure among other things
As it stands today, the government is the biggest financier for agriculture. Though this is encouraging but indicates something is not right as required investors and talents into the sector is not encouraging.
It is obvious that in spite of government investments in this sector, a typical Nigeria is inherently compel to go into this industry due to unemployment and not for passion, which peradventure drives innovation.
All things being equal, how many Nigerian graduates would settle for farming even among the agriculture graduates? Why, the answer is not far fetch, make the sector sexier.
Notable parameters that is a surebet in openning up any sector of the economy globally or sexier if you like is acquisition of talents and finance hugely from private stakeholders which had been underpinned for economy viability. Think of Nigerian entertainment industry in the 70s and Now. Likewise remember the fall of the Nigerian Railway Corporation which was once pride of the citizens and nation but went under as its continuously loose talents and finance, thereby becoming obsolete.
Agriculture is still upholding its own even with the advent of black gold, oil, in the 60's because food is part of human's survival instinct, hence enabling rural farming to benefit immensely from functional centralized marketing board as evidenced in our groundnut pyramid in the North, cocoa in the the south etc.
History revealed that the number of family farmers and practice far outweigh their corporate counterparts, enjoyed the luxury of organized marketing channels, mass transportation to market was also superfluous.
The handler of agriculture should face reality in heightening food domestication as family farming as being unanimously indicated even by United Nation to supplying over 60% of food consumed in a nation.
Rural farming primarily focus on food availability within localities, self reliance, food security, sustainability unlike commercial farmers who specialize in export and industrial complexes such as food processing (alcohol, syrup, concentrates etc)
Emphatically there are more than enough food for all Nigerians within Nigeria. However, one of the major bottlenecks which is a nightmare to rural farmer is inability to access the market timely, besides silo undertaking and preservative techniques.
The re-emergence of the marketing board would be wholesome in beaming their light on local consumption while riding on the wings of rural farming via 774LGs by harnessing their CDAs to making food items surplus
The partnership between Kebbi and Lagos State indirectly influence prices of rice locally, depicting the multiplier effect of market penetration.
The agricultural exploration five decades back resulting in enviable external reserves came from engagement and participation of rural farmers.
It behoves on the government to borrow a leave from the past coupled with laboratory channels within reach.
Extension workers should be deployed as key component to achieving this feat as reward and punitive measure would spur employees to work.
Prioritizing food domestication, organic marketing boards and comparative advantage, would go a long way to enhancing food security, traceability, income distribution, halt rural urban migration, attract talents and capital, advance tax returns and shift supply of food items upward thereby invariably forcing prices downward
The recent data released by NBS further confirmed the skepticism from Nigerians, questioning the pronouncement of the Minister of Finance and her proponents that the economy is out of recession few weeks back.
To the man on the street, the phrase "Out of Recession" means affordable food items among other basic human's need. It is disturbing projecting a downward trends of inflation rate as against unbearable high food prices in a nation where citizenry lives below a dollar per day.
Xraying the indices for 15.98% dropped for eight varied consecutive time since January 2017 without a slight effect positively on food items but rather puncturing the consumer purchasing power to acquiring a "must have" daily commodity that inherently tentacles into every fabric of our humanity call for attention.
No society can survive without food, beside being a surviving component, and routine medicine for all and sundry, it is a basic fundamental human right that should be adequate, safe, nutritious, accessible and affordable.
Come to think of it, inflation refers to rise in prices relatively to flow of goods offered for sales. Whenever demand exceeds supply, inflation sets in. By the same token, lack of flow of food commodities to the market for sale relatively exacerbate rise in food prices hence pushing demand for food items over supply to the market. Would it be appropriate saying this is the reason why Nigeria is the second most expensive place to purchase food products?
Technically, economics call it downward shift in supply, one of the two causes of inflation.
The solution to the challenges is not a rocket science, but lies within revamping the system while putting first thing first. It begins by asking the right question; how do we get here, where do we miss it, why, what and when do we really experience such mishap?
Common sense shows that reversing the shift in supply is paramount to halting escalating food prices. This entails processes, structure and overhauling the system. The starting point is identifying the factors for this shift which are primarily;
Inaccessibility of food products to mouth of those that needed it most or the market
Lack of robust centralized marketing board stepping from the Community Development Area, CDA, up to the Local Government Areas to the State, Region and Federal level
Imbalance between food exportation and domestication
Prioritizing export of food items at the expense of food domestication
Prioritizing corporate farming over rural farming
Zero reward system, compensation plan and punitive measures for agriculture extension workers
Lack of centralized laboratory channels from the grassroot to the federal level in assessing quality and safety of food commodity
Lack of making agriculture a sexier adventure among other things
As it stands today, the government is the biggest financier for agriculture. Though this is encouraging but indicates something is not right as required investors and talents into the sector is not encouraging.
It is obvious that in spite of government investments in this sector, a typical Nigeria is inherently compel to go into this industry due to unemployment and not for passion, which peradventure drives innovation.
All things being equal, how many Nigerian graduates would settle for farming even among the agriculture graduates? Why, the answer is not far fetch, make the sector sexier.
Notable parameters that is a surebet in openning up any sector of the economy globally or sexier if you like is acquisition of talents and finance hugely from private stakeholders which had been underpinned for economy viability. Think of Nigerian entertainment industry in the 70s and Now. Likewise remember the fall of the Nigerian Railway Corporation which was once pride of the citizens and nation but went under as its continuously loose talents and finance, thereby becoming obsolete.
Agriculture is still upholding its own even with the advent of black gold, oil, in the 60's because food is part of human's survival instinct, hence enabling rural farming to benefit immensely from functional centralized marketing board as evidenced in our groundnut pyramid in the North, cocoa in the the south etc.
History revealed that the number of family farmers and practice far outweigh their corporate counterparts, enjoyed the luxury of organized marketing channels, mass transportation to market was also superfluous.
The handler of agriculture should face reality in heightening food domestication as family farming as being unanimously indicated even by United Nation to supplying over 60% of food consumed in a nation.
Rural farming primarily focus on food availability within localities, self reliance, food security, sustainability unlike commercial farmers who specialize in export and industrial complexes such as food processing (alcohol, syrup, concentrates etc)
Emphatically there are more than enough food for all Nigerians within Nigeria. However, one of the major bottlenecks which is a nightmare to rural farmer is inability to access the market timely, besides silo undertaking and preservative techniques.
The re-emergence of the marketing board would be wholesome in beaming their light on local consumption while riding on the wings of rural farming via 774LGs by harnessing their CDAs to making food items surplus
The partnership between Kebbi and Lagos State indirectly influence prices of rice locally, depicting the multiplier effect of market penetration.
The agricultural exploration five decades back resulting in enviable external reserves came from engagement and participation of rural farmers.
It behoves on the government to borrow a leave from the past coupled with laboratory channels within reach.
Extension workers should be deployed as key component to achieving this feat as reward and punitive measure would spur employees to work.
Prioritizing food domestication, organic marketing boards and comparative advantage, would go a long way to enhancing food security, traceability, income distribution, halt rural urban migration, attract talents and capital, advance tax returns and shift supply of food items upward thereby invariably forcing prices downward
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