Nigerians are questioning why food prices remain high despite the recent strengthening of the Naira, which has appreciated to N1,300 to the dollar, giving hope for economic recovery. This concern is shared by various groups, including farmers and Civil Society Organizations (CSOs), who are puzzled by the disconnect between the positive economic indicators and the persistent high prices of food.
Farmers and CSOs Voice Concerns:
Farmers and CSOs point out that the cost of farm inputs remains prohibitively high, while interest rates are beyond what most farmers can afford. They highlight several factors contributing to this situation. However, they also offer suggestions on how the government can sustain the appreciation of the Naira, which could eventually lead to increased food production and more affordable prices for Nigerians.
The Naira has shown significant improvement, strengthening from nearly N2,000 to N1,300 per dollar over the past four weeks, a gain of more than 700 Naira.
Ibrahim Kabir, the National President of the All Farmers Association of Nigeria, believes that a stronger Naira will increase purchasing power, allowing people to buy more food. He emphasizes that this will make food more affordable, a crucial factor for ensuring food security. Kabir expresses hope that the costs of production will decrease, leading to lower food prices.
Factors Contributing to High Food Prices:
However, Chief Daniel Okafor, the National President of the Potato Farmers Association of Nigeria (POFAN), argues that despite the Naira’s appreciation, food prices remain high. He explains that this is because current food supplies were produced when input costs were high. Okafor suggests that the impact of the Naira’s appreciation on food prices will only be seen in the future, particularly if input costs decrease.
Engr Daniel Ijeh, an agribusiness expert and CEO of EA Daniels Farm, believes that sustained Naira appreciation could lead to increased food production if supported by government policies that enhance farmers’ productivity. He explains that if the appreciation continues, the supply of food will increase, leading to lower prices. He also suggests improving agricultural expertise and access to farm finance to boost food security.
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Andrew Mamedu, the Country Director of ActionAid Nigeria, acknowledges the Naira’s appreciation but calls for further measures to reduce lending rates and boost food production. He emphasizes that while the Naira’s appreciation has immediate economic impacts, it will take time to see changes in food prices due to factors like insecurity and inflation. Mamedu suggests that the government and citizens alike should work together to strengthen the economy and reduce importation.
Jamilu Muhammad, Chairman of AFAN Sokoto State Chapter, points out that while Naira appreciation affects imported items, the high cost of local factors like fuel remains a significant challenge for food production. He suggests that a reduction in fuel prices could help lower food prices in the long run.
Overall, while the Naira’s appreciation offers hope for economic improvement, its impact on food production and prices will require sustained efforts and supportive policies from both the government and the private sector.
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Written By Malik Kamaldeen M.