The current global food crisis has grave implications for a nation like Nigeria that is heavily import-dependent and ranks low in strategic planning. Precedent to the global food price hike, the World Bank had warned in its report tagged, “Rising Food Prices: Policy options and World Bank Response”, that food crop prices would remain high in 2008 and 2009. The report also says that prices of food crops will decline after 2009 but will remain higher than the 2004 margins up to 2015.

The world body has also stated that global wheat prices reached 181 per cent in the last 36 months and overall food prices increased by 83 per cent. According to the Foreign Agricultural Service of the United States, the world’s rice reserve estimated at 80.6m in 2005 and 2006, is now at their lowest levels since 1983-1984, representing just two months of consumption. Half of the rice stocks are being held by China alone.

Naturally, the world’s two biggest producers of rice, Thailand and India, have increased the prices of their overseas shipments and restricted exports to enable them to feed their nationals and curb inflation.

Following these horrendous global developments, the prices of rice – the staple of millions of Nigerians – have hit the roofs. Prices of various grades of imported rice have risen by at least 50 per cent since December. Also, there have been increases in the prices of wheat, flour and sugar, which have made bakers alert of a 25 per cent increase in the prices of loaves of bread in April.

The food crisis ravaging the world has resulted in riots in Senegal, Mali, Ivory Coast and Guinea. Although it may not degenerate into that level in Nigeria given our uncanny capacity to absorb pain, it will definitely aggravate the intolerable rate of armed robbery and general insecurity.

The massive conversion of food crops into biofuels is at the heart of the current global food crisis. The search for cleaner fuels is leading many countries to transform soy beans, corn, wheat and sugar cane into ethanol and biodiesel.

Ordinarily, as an agrarian nation that is blessed with fertile land and favourable climate, Nigeria should not have any business with hunger. Agriculture was the mainstay of the nation’s economy up until the 70s. But with the discovery of oil in commercial quantity, successive governments abandoned farming for petrodollar. Today, Nigeria is shamefully the world’s second largest importer of rice after the Philippines. In 2006 alone, Nigeria spent $267m on the importation of the product. Importation of rice may gulp over $1b in 2008.

As part of its immediate response to the food crisis, the Federal Government has started to release food into the market from the National Strategic Food Reserve. The Minister of Agriculture and Water Resources, Dr. Sayyadi Abba Ruma, has also unfolded a comprehensive plan to modernise agriculture. River Basin and Rural Development Authorities are to be revitalised to encourage irrigation and all-season farming.

The private sector-driven plan will support commercial farmers who are to engage small holders in contract farming. These small-scale farmers are expected to put about six to 10 million hectares under cultivation every year for four consecutive years. Farmers’ cooperative societies are to be strengthened to provide micro-finance, supply farm inputs and facilitate processing and marketing of farm produce. The government is to partner with the private sector to provide storage facilities and other essential agro services.

This is an impressive plan indeed. But the nation has never lacked such comprehensive revival plans for agriculture. Operation Feed the Nation and Green Revolution were equally impressive when they were launched many years ago. But there was no commitment because there was a ready source of revenue in oil exports.

The challenge before the Yar’Adua administration therefore is how to convert the new agric rivival plan into actual production of food. The nation must be cushioned against the raging global food crisis. There is no national security without food security.

http://www.punchng.com/Articl.aspx?theartic=Art200804220483075

At first, The Global Food Crisis sounded like another alarmist prediction from agricultural and bio-engineering scientists whose research funding stood to grow in proportion to the amount of uncertainty and fear that could be fed to the media about planet earth's future ability to feed its populations. But now with the sky-rocketing world-wide price of basic food staples like rice in the past 3 months alone, those dire predictions about world-wide food shortages are becoming more credible by the day.

At the same time environmentalist groups who initially celebrated the invention of efficient and "clean" bio-diesel fuels, many of which are derived from industrial-scale oil-palm harvests, have gone from cheering to jeering as wide swaths of Brazilian rain forest are reduced to ash to make way for MORE oil palm plantations that will yield a "clean-burning" final product, bio-diesel, by one of the dirtiest, most environmentally destructive means devised by man - deforestation.

Despite all this gloom and doom, the ability of the human race to adapt and evolve with a changing planet should never be under-estimated

There is need for govt to address the situation , otherwise the common man will eat amongst chickens.

Imagine a bag of rice now selling for N10,000. What about the sky rocketing price of common man food(bread)What hope for the common man? The govt should not forget that a HUNGRY man is an[b] ANGRY AND DESPERATE [/b]man.

What can Naija Government do about the rising cost of rice? It is not like we have any reserves to call on. It is not the government fixing the price but increase in demand, shortall in supply and speculators speculating on the price. Is it not since last summer that we have been hearing that the price of soft goods is going up? Everybody went and bought shares in companies that produce soft goods and now the price is increasing, they are chopping their money.

So does Nigeria even have anything resembling an active agric sector? A lot of money goes into the agric sector but what does the country have to show for it? What does the minister of that sector have planned? All the empty land, is Ota the only functioning farm in the country?

bluehorizo:

Imagine a bag of rice now selling for N10,000. What about the sky rocketing price of common man food(bread)What hope for the common man? The govt should not forget that a HUNGRY man is an[b] ANGRY AND DESPERATE [/b]man.

actually angry hungry and desperate men in the streets may be what nigeria needs. such a mood turned romania around

Ordinarily, as an agrarian nation that is blessed with fertile land and favourable climate, Nigeria should not have any business with hunger. Agriculture was the mainstay of the nation’s economy up until the 70s. But with the discovery of oil in commercial quantity, successive governments abandoned farming for petrodollar. Today, Nigeria is shamefully the world’s second largest importer of rice after the Philippines. In 2006 alone, Nigeria spent $267m on the importation of the product. Importation of rice may gulp over $1b in 2008.

Considering this problem has been about a year or two in the making, is there any indication that the government has already made plans to pump more money into agriculture??

Kobojunkie:

Considering this problem has been about a year or two in the making, is there any indication that the government has already made plans to pump more money into agriculture??

The problem is not about "more money". The problem is making sure that the "little" money allocated to the agric sector is actually used for the agric sector. Chances are that it ends up in the bank account of one politician.

A question please:
Is the Federal Govt still subsidizing the price of fertilizers for farmers?

@Kobojunkie, pump more money into the agricultural sector? Don't you mean pump more money into the pockets of politicians via the agric sector? LOL. The problem with Nigeria has not been money but actually spending the money on what it has been allocated for. Hasn't money already been pumped into the agric sector every year already? What has that sector got to show? Honestly what?

Wait a sec,  I am trying to be "OPTIMISTIC" here and that means believing that rule of law is now in place and if the government pumps money into this sector, it will definitely go to improving the sector. Are you saying that after all the "rule of law" and the president taking his time to work on issues, we still can not put money into a project and successfully carry it out, well at least 50% of the way

I don't know if anyone sees it but this to me is Nigeria's opportunistic to not only become basket of africa but actually become of the major food exporters in the world. We have 1000's of vacant hectares of land that has for years remained unplowed. Some farmers complain of american farmers getting subsidies, we have a surplus right now and this is about one of the best times to break into the market in a big way.

We are yet to see the yields of the "smaller money" that was allocated to the agric sector. Obj came out with his due process and of course we were optimistic. How wrong were we?

I would not be excited if the govt increases funds to the agric sector by 80 percent . That does not mean it is going to the agric sector.

Uche2nna:

We are yet to see the yields of the "smaller money" that was allocated to the agric sector. Obj came out with his due process and of course we were optimistic. How wrong were we?

I would not be excited if the govt increases funds to the agric sector by 80 percent . That does not mean it is going to the agric sector.

Chai!!! Due process. Rule of law, I wonder what is next , LMAO!!

Have you people forgotten "Master plan"?? Even politician's backyard now have master plan.

Kobojunkie:

Chai!!! Due process. Rule of law, I wonder what is next , LMAO!!

It is actually sad. Very sad. A country that is filled with plenty potentials but taken down the drain by the gargantaun greed of our so - called leader. Nigeria is a gold mine. The resources are there, the personnel abundant. All the Government need do is just put in the enabling environment. Thats not asking for too much. Put in a reliable source of power (which the citizerns would pay for  meaning more revenue), constant power supply (more revenue for the govt), link cities with roads . Then sit down and watch Nigeria grow into an industrialist nation.

Uche2nna:

It is actually sad. Very sad. A country that is filled with plenty potentials but taken down the drain by the gargantaun greed of our so - called leader. Nigeria is a gold mine. The resources are there, the personnel abundant. All the Government need do is just put in the enabling environment. Thats not asking for too much. Put in a reliable source of power (which the citizerns would pay for  meaning more revenue), constant power supply (more revenue for the govt), link cities with roads . Then sit down and watch Nigeria grow into an industrialist nation.

You are a "pessimist" cause you do not see all the good that yar adua has done in that country to date. Might I add that you are also pro-white for the statements above!! LMAO!!!

I really do believe Nigeria should be striving to reach the point whereby we can feed the nation and even feed other parts of Africa via exports. This overdependence on imports is too much. It makes us even more vulnurable to things like the price fluctuations. Also we should have at leats 3 working refineries in the country so that we can stop importing fuel, can you imagine? The largest exporter of oil in Africa and we need to import crude oil? When we are at the point of exporting higher grade materials from refineries, we have more variation in petroleum products and would get much higher income from the petroleum sector. All these things are so basic.

Sky Blue:

I really do believe Nigeria should be striving to reach the point whereby we can feed the nation and even feed other parts of Africa via exports. This overdependence on imports is too much. It makes us even more vulnurable to things like the price fluctuations. Also we should have at leats 3 working refineries in the country so that we can stop importing fuel, can you imagine? The largest exporter of oil in Africa and we need to import crude oil? When we are at the point of exporting higher grade materials from refineries, we have more variation in petroleum products and would get much higher income from the petroleum sector. All these things are so basic.

We import about everything. It does not make sense to me.

Kobojunkie:

You are a "pessimist" cause you do not see all the good that yar adua has done in that country to date. Might I add that you are also pro-white for the statements above!! LMAO!!!

This is not an indictment on the Yar Adua's administration. This is more to the past admin especially the Obj-led one. That guy had the opportunity to at least set Nigeria onto the road of some economic stability.
As for the Yar Adua led- admin, I just siddon dey look. Time would tell if he is actually what we need. But I wont be surprise if it is all bark, bark and no bite. A bad government is usually the norm rather than the exception in Nigeria.

Dangote is the 2nd Richest black in the world. Great achievement. I wonder why he has failed to produce rice in this country with all those billions and depends on importation of rice when he can afford to. Hmmm

bluehorizo:

Dangote is the 2nd Richest black in the world. Great achievement. I wonder why he has failed to produce rice in this country with all those billions and depends on importation of rice when he can afford to. Hmmm

Well, the man can not take on what he is not really equipped to. I mean from the much I hear of him it is not that he is really a farmer or something. His being a billionaire doesn't mean he should make himself Nigeria's "saviour". The situation in that country requires a government that is active and fast to respond to situations.

Very soon Nigerians will turn to cannibals and start eating their dead relatives out of poverty!

$50billion in external reserves with people suffering with chapped lips and malnutrition all over the place!

This why Africa is a mess.  We fail to plan therefore we plan to fail.
Nigeria cannot deny that there has always been a food problem.  People right at the bottom of the ladder can't afford to eat three square meals. Now we have a rice crisis.  
What now? where do they want to throw money?

What crops can we grow now that will counteract the negative affect of the growing food prices?

not that u guys don't have legitimate gripes, i believe agricultural projects take a long time and lots of investments to yield results. wasn't there plans of rice cultivation in Lagos with white farmers in kwara and coconut/pineapple farming etc. those usually take like a decade to make a big impact. and yes i do know 1 year is the equivalent of 3years in african time

Now we know ,
We need to go back to Agric (build back d groundnut pyramids in the north, cocoa in the west, rubber , palm in the east ) and other crops that can thrive on our soil,
I think our lot will be better

The price of soft commodities will either increase or stay stable for the medium to long term so if you are waiting for the prices to go down, hungry go catch you.

The Federal Executive Council on Wednesday approved the suspension of all levies and duties on rice imports for a period of six months, ending on October 31, 2008.

The suspension of duties and levies on rice importation, which is expected to cost the Federal Government about N40bn, followed FEC’s approval of intervention measures developed at the recent meeting between President Umaru Yar’Adua and the 36 state governors to cushion the impact of the global food crisis on Nigerians.

The Minister of Agriculture and Water Resources, Dr. Sayyadi Abba Ruma, who briefed newsmen after the meeting, said that the Federal Government had already secured the commitment of Thailand, India and Malaysia to guarantee the availability of rice to Nigerian commercial importers.

The minister said that the 50 per cent levy and 50 per cent duty on rice importation in the country were contributing to the high market price of the staple.

Ruma said that the suspension of duties and levies on rice importation was among four major measures adopted by the FEC in a bid to check the soaring cost of the commodity, and also avert a looming food crisis in the country.

Other measures include the establishment of a N10bn credit facility from the Rice Levy Account to support local rice processing, and a plan to double the capacity of the National Strategic Food Reserves from the current 300,000 metric tonnes to 600,000 metric tonnes.

Announcing the measures adopted by the FEC, Ruma said, “The Federal Executive Council today (Wednesday) approved the following:

“The suspension of all levies and duties on rice imports for a period of six months, ending on October 31, 2008.

“The utilisation of funds accruing to the Development of Natural Resources Account between now and 2011 to boost domestic production of food crops and development of agro-allied industries. The current balance in the account is N80.28bn.

“The provision of N10bn from the Rice Levy Account for a credit scheme in support of local rice processing. Credit granted under this scheme will attract a four per cent rate of interest and a repayment period of 15 years, including a five-year moratorium.

“The completion of all outstanding food storage projects before the end of this year to significantly increase the capacity of the National Strategic Food Reserves from 300,000 metric tonnes to 600,000 metric tonnes.”

Ruma added that, “while other measures aimed at averting a domestic food crisis are under active consideration, the Federal Government remained fully confident that its immediate, medium and long-term strategies for national food security will achieve the desired results and alleviate the impact of the global food crisis on Nigerians.”

Finance Minister, Dr. Shamsuddeen Usman explained that details of the N10bn rice support credit facility would be worked out in the next few days.

Information and Communication Minister, Mr. John Odey, who coordinated the media briefing, informed newsmen that henceforth the Federal Executive Council would meet weekly, instead of fortnightly as adopted by Yar’Adua at the inception of his administration.

It would be recalled that the FEC met weekly during the immediate past federal administration under President Olusegun Obasanjo.

However, it was also gathered that Yar’Adua decided to revert to weekly FEC meetings in order to accelerate the pace of his administration.

http://www.punchng.com/Articl.aspx?theartic=Art200805081221281

A question please:
Is the Federal Govt still subsidizing the price of fertilizers for farmers?

Yes, we don't have a single manufacturer of the product in the country at the moment
and with the raising price of crude oil the price of fertilizer is increasing every year
if they don't subsidize it, Ota and other private farms will probably be the only ones that can
afford it, even at the current price state governments subsidize it when it is delivered to their state

babakura:

Now we know ,
We need to go back to Agric (build back d groundnut pyramids in the north, cocoa in the west, rubber , palm in the east ) and other crops that can thrive on our soil,
I think our lot will be better

Actually I don't think they can, back then industries processing groundnut were not available
and population was low and other related industries see little value the product

What about the Ofada rice and one other rice in Ekiti? Why can't the Govt invest in the production of rice? I sorry for those people living in the "rock".

people are waiting for the government to invest in this and that
government is waiting for the people to invest in this and that

I think another problem is that people are not actually buying made in nigeria rice
I think that is one of the reason why the govt increase the duties on imported rice-
so people can patronise the cheaper local one but no we wan chop tolly boy

Nobody buying made in Nigeria rice? with over 75 million Nigerians living before the poverty line, you believe that is the case