Food price hike worries operators amid N1.25tn agric budget

Farmers and stakeholders criticize Nigeria’s federal agriculture budget, over N1.25tn in three years, for failing to curb rising food prices despite availability. The All Farmers Association of Nigeria links high costs to naira devaluation, stressing affordability issues. The Abuja Chamber of Commerce highlights worsening poverty due to food inflation, which rose to 40.66% in May 2024. They urge urgent government intervention to stabilize food prices, enhance food security, and alleviate economic burdens on citizens and small businesses. Source: Punch

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The persistent high prices of food items in Nigeria, despite substantial budget allocations, highlight critical inefficiencies in the country’s agricultural value chain. The All Farmers Association of Nigeria and the Abuja Chamber of Commerce and Industry pinpoint the devaluation of the naira as a significant factor, exacerbating food unaffordability. Despite over N1.25 trillion allocated to the Federal Ministry of Agriculture and Food Security from 2022 to 2024, food prices remain elevated due to inflation, currency depreciation, and systemic issues.
For informed decisions and growth, it is crucial to address currency stabilization and enhance budget performance. Increased transparency and efficient budget utilization are imperative. Strengthening rural infrastructure, modernizing farming practices, and investing in storage and distribution can mitigate post-harvest losses and ensure better market supply. Collaborative efforts between federal, state, and local governments, alongside private sector partnerships, will be vital in creating a more resilient agri-food sector.
To combat poverty and food insecurity, policies must ensure both availability and affordability of food. Immediate actions should include targeted subsidies, support for small-scale farmers, and robust monitoring of budget implementation.