Showing posts with label Food. Show all posts
Showing posts with label Food. Show all posts

Sunday, 11 September 2016

By December, Bag of Rice May Sell for N40,000 – Minister


The Minister of State for Agriculture and Rural Development, Senator Heineken Lokpobiri, has said that Nigeria spends about $22bn a year on importation of food.
Lokpobiri made this known on Saturday at a town hall meeting in Yenagoa, Bayelsa State.
He said the development had led to the astronomical rise in price of rice and other commodities, stressing that if Nigerians failed to produce some of the items being imported, before December the price of rice would skyrocket to N40,000 a bag.
He said there was a projection that by 2050, Nigeria’s population would be 450 million, wondering what would happen then if the people could not feed themselves now.
Lokpobiri said, “For your information, we spend about $22bn a year importing food into Nigeria. We know how many more dollars … and that is why you see the price of rice going up.
“Price of rice was N12,000 some months ago, but it is now about N26,000 and if we don’t start producing, by December it could be N40,000.
“Rice matures in three months. So, this is a wake up call for Bayelsa people to take the four farms we have seriously. The federal government has four farms in the state in our records. The average land you see in Bayelsa can grow rice, so the colonial masters were not wrong in their assessment when they said Niger Delta could feed not only Nigeria but the entire West Africa sub-region.
“Unfortunately, agriculture till today, is not a priority of the Niger Delta as far as the state governments are concerned because of oil.”
He said the states in the Niger Delta had yet to give priority to agriculture the way the North-West states such as Kebbi, Jigawa, Kano as well as other states like Lagos, Ebonyi, Anambra, have prioritised it.
He said Anambra State for instance, was not owing salaries despite the fact that it does not have oil but raking in money by exporting vegetables.

Wednesday, 24 August 2016

The hike in food prices

By Lekan Sote:

Nigerians are complaining about scarcity of food. A cousin called recently to say: “Please, tell (President Muhammadu) Buhari in your column that Nigerians are hungry; the cost of food items is too high. Before his agricultural programme yields fruits (no pun intended), let him open the borders for food to come in. He should also import “eran Muri,” (beef imported by the regime of the late Head of State, Gen Murtala Muhammed).
It was not too difficult to notice the pathos, if not agony, in her voice. A visit to the markets will confirm that the prices of food items like tomatoes, peppers, fish, beef, poultry, palm oil, vegetable oil, garri, beans, rice, milk, butter, jam, corn flakes, have gone up north. Another cousin puts the price increases to somewhere between 150 per cent and 250 per cent. Mothers now only ask if their children have eaten, and not if they had enough.
The Nigeria Customs Service confirms that the policy that restricts rice importers access to the Central Bank of Nigeria’s foreign exchange window has drastically reduced the importation of rice. But without a credible plan by government to increase local production of rice, the NCS boast is a negative achievement.
The evident scarcity of all food items confirms that Nigerians are paying for their collective folly of abandoning agriculture. Analysts say that Africa accounts for a mere 5.6 per cent of global meat production, Asia, 42.3; the Americas, 31.4; Europe, 18.7; and other parts, two per cent. An obviously worried President Buhari observes: “In the past few years… we have spent in excess of $11 billion annually importing wheat, rice, sugar, and fish. We… cannot continue on this trajectory.”
You won’t be the only one that is tired of frustrating reminiscences about the groundnut pyramids, and hides and skins in Northern Nigeria, and cocoa, timber, and rubber plantations of the Western and Mid-Western Nigeria. And you will be justified to take umbrage that Malaysia that learnt how to propagate palm trees from Nigerian Institute for Oil Palm Research now exports bleached palm oil, as vegetable oil, to Nigeria.
President Buhari correctly identifies “agriculture (as) key to our economic growth and social investment policies.” He adds that the major strategy of his government “is to ensure that Nigeria becomes self-sufficient in the foods that we consume the most.” He argues that “maize, rice, corn, millets, fruits, poultry products, and their derivatives can all be produced at home if we put our hearts to it.” He concludes Nigerians should “produce what we eat! It is not only logical, it is necessary.”
You should agree with him when you consider that in 2016, about 1.5 million jute bags needed to pack cashew nuts and cocoa beans for export were not available. The exporters of these commodities threatened to use polypropylene bags instead: This is an indictment of government’s failure to encourage farmers to grow sisal hemp, and empower the agro-allied industries to convert the commodity into jute bag.
Keith Richards, a former Managing Director of Guinness Nigeria Plc, says: “Almost all locally processed food has imported raw materials and packaging as part of their bill of material. Multinationals have been desperately seeking to replace imports with locally sourced produce for several years, with limited success. The reliability of supply, consistent quality, in sufficient and guaranteed quantity are just not there.”
Though Richards is an aspiring Nigeria-phile, with a traditional chieftaincy title, one cannot be too sure of the commitment of foreign multinationals, or nationals, to the progress of Nigeria’s agricultural sector. By importing their raw materials and supplies, foreign companies can easily “pad” (that word again), or “load” their invoices – to creatively increase their profits and transfer funds to their home countries.
President Buhari says that “Nearly all our crop-based farming activities are dependent on rain-fed agriculture, and this makes our agricultural productivity entirely vulnerable to the effects of climate change.” That is correct, but it’s not a problem that can’t be overcome; success in agriculture is dependent on man’s ability to work with geography and science.
Nigeria’s labour movement wants the country to take advantage of the United Nations Ecosystem Based Adaptation for Food Security Assembly whose aim is to check the effect of global food crisis. This platform helps governments to develop and implement policies to enhance the performance of agriculture, its value chain, industrialisation, and job creation.
Lagos State Governor Akinwunmi Ambode notes that “Prior to the oil boom era, agriculture was the mainstay of Nigeria’s economy: It contributed about 65 per cent of (Nigeria’s) Gross Domestic Product, 70 per cent of exports,” and, you may add, more than 70 per cent of employment.
The American society commenced in the 17th century with agriculture, which employed 19 out of every 20 workers, as economic mainstay. By 1979, only one out of every 20 workers, or five per cent, remained in agriculture, yet America became, and remains, the largest producer of food in the world. Nigeria can replicate this feat with the right policies.
Ambode reveals that there will be collaborative efforts between Lagos State and Kebbi State to develop an agricultural commodity value-chain that can produce close to 70 per cent of Nigeria’s rice need, feed its agro-allied industry, and provide jobs for the youths. He plans to enhance Lagos capacity to increase fish production.
Government must however note that Operation Feed the Nation, Green Revolution and Directorate of Foods Roads and Rural Infrastructure programmes of the respective governments of Gen Olusegun Obasanjo, President Shehu Shagari, and Gen Ibrahim Babangida, failed woefully because they were driven from top down.
Therefore, government must find a way to transform individual economic freedom, another word for private gain, into country-wide economic cooperation. That is how the agricultural sector can grow the crops in quantum, and the industrial sector will efficiently process the same to increase both profitability and the GDP.
Ambode’s advocacy for functional rail and water transport will likely get a fillip with Vice President Yemi Osinbajo’s announcement that work will soon start on the Lagos-Kano and Lagos-Calabar rail lines and 31 major roads across Nigeria. The increase and improvement in rail and road networks should link the farm gate and industry to consumers.
Somebody must strengthen the Nigerian Commodities Exchange, which the All Progressives Congress National Leader, Asiwaju Bola Tinubu, thinks is one sham that the previous government probably did not thoroughly think through. This Exchange should be integral to Nigeria’s agricultural value chain, and guarantee appropriate prices for agricultural produce.
Apart from the mention in President Buhari’s inaugural speech, imprecise allusions by Minister of Agriculture, Audu Ogbeh, and uncoordinated snippets  by sundry other government functionaries, no one has quite unfolded a Big Picture plan for local food production.
Prof Ibrahim Gambari, a former Nigerian Permanent Representative to the United Nations, says “it would be incorrect to say that (the Buhari) government does not have an economic policy.” But he wants the government to clearly “list out their priorities.”
If the local food production deity cannot produce enough food for Nigerians, it should let the food import regime be. If this sounds like economic suicide, government must urgently deploy a local food plan. The hike in prices of foodstuff has arrived all neighbourhoods.

Twitter @lekansote1
(PUNCH).