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Food Inflation Up By 108% Since 2015, Despite Billions On Agriculture - Agriculture - Nairaland

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Food Inflation Up By 108% Since 2015, Despite Billions On Agriculture by Blue3k(m): 2:56am On Sep 17
Nigeria’s food inflation has more than doubled since August 2015, exactly 5 years after the Buhari Administration took charge of the Nigerian economy.

This was determined by comparing the composite index for food inflation rate in August 2020 versus same period in 2015. The difference is a whopping 108% increase in inflation rate, in just 5 years. Within this period, Nigeria’s exchange rate has been devalued by 49%.

Whilst the Nigerian economy has been ravaged by a very low oil price environment, since it fell from over $100 per barrel in 2014, most of the reasons for the increase in cost of living are partly attributed to some of the policies of the government.

Since 2015, the government has focused on a ‘grow-what-you-can-eat’ policy, pouring billions of naira into the agricultural sector. Since its inception in 2015, the Anchor Borrowers Programme (ABP), has received about N190billion disbursement from the CBN.

Another N622billion was lent through banks under the Commercial Agriculture Credit Scheme. Add the various grants, tax incentives, and concessions, that’s almost N2 trillion spent in the last 5 years on helping Nigeria to achieve food self-sufficiency.


Whilst modest successes have been recorded, the cost of staple food items remain high – galloping in each passing month. Since the border closure was announced in August 2019, the food inflation rate has risen every month, from 13.17% in August of 2019 to 16% last month. It is projected to hit 20% by the first quarter of 2021, when the effects of the increase in petrol and electricity prices are accounted for.

Nigerians have never had it this bad. Despite the good intentions of the government, things have not particularly turned out well. A common challenge in trying to solve a problem is not being able to manage what is outside of your control. In agriculture, a lot seem to be outside of the control of this government.

Yield per hectare for most farming is well below global standards, driving up the cost of whatever is left to be sold to Nigerians. Farmers also face insecurity, flooding, and sometimes famine affecting their ability to plant and harvest. Even after harvesting, supply chain challenges still persist, leaving farmers to contend with middlemen, transportation, and storage. The result is far less farm produce reaching the final consumer.

For items under its control, it still cannot determine the outcomes, and the causes and effects. Just last week, it announced the banning of maize, only to flip-flop after learning that poultry farmers lacked maize feeds to grow their chickens. It quickly granted licenses to four companies to import maize.

Thus, while the government attempts to manage what it can control such as banning of imports, denying access to forex, and of course border closure, it cannot solve all these problems with CBN funding and banning. They are structural, and require a better approach that is private sector driven, yet pragmatic. The government also needs to tell itself the truth; Nigeria cannot be self-sufficient by banning.

So long as we continue to avoid relying on data and objective reasoning, to balance the need for local agro-processing and imports to meet demand, food inflation will remain high and galloping. Who knows, by the time this administration’s tenure is up, we could be looking at a state of emergency driven by a full blown food crisis.

Source: https://nairametrics.com/2020/09/16/despite-billions-on-agriculture-food-inflation-up-by-108-since-2015/

6 Likes

Re: Food Inflation Up By 108% Since 2015, Despite Billions On Agriculture by LawLab247: 3:03am On Sep 17
Nawa o. Cost of living on the rise while standard of living is on continued plunge. God airpus o. Anyways, for CAC company/business or NGO registration, TIN, SCUML, Copyright, Trademark, NAFDAC etc, reach us at www. eNigeria. org.

4 Likes

Re: Food Inflation Up By 108% Since 2015, Despite Billions On Agriculture by MejiLoyon: 3:06am On Sep 17
Wey the food Wey dey inflate
Re: Food Inflation Up By 108% Since 2015, Despite Billions On Agriculture by prince2pac(m): 3:09am On Sep 17
It is only getting worst day by day...
^^108% inflation rate... nah this government no mean well

28 Likes

Re: Food Inflation Up By 108% Since 2015, Despite Billions On Agriculture by Blue3k(m): 3:10am On Sep 17
They are structural, and require a better approach that is private sector driven, yet pragmatic. The government also needs to tell itself the truth; Nigeria cannot be self-sufficient by banning.

Some solutions to issue.

repeal the land use act
• focus on increasing mechanized farming
• commodity exchange

19 Likes 2 Shares

Re: Food Inflation Up By 108% Since 2015, Despite Billions On Agriculture by DMerciful(m): 3:25am On Sep 17
Tells you the so-called agricultural revolution is on paper! Bubu is a monumental failure

56 Likes 1 Share

Re: Food Inflation Up By 108% Since 2015, Despite Billions On Agriculture by urchcoded(m): 4:02am On Sep 17
If left to buhari everybody should plant what he or she would eat. Anyway to drift a bit, this is 2020 every country is moving forward we are still bothered about eating to survive. In as much as food is the most important thing to life, there is no way we can upgrade from an impoverished nation to an underdeveloped nation if all we are trying to solve is the problem of starvation.

13 Likes 1 Share

Re: Food Inflation Up By 108% Since 2015, Despite Billions On Agriculture by Blue3k(m): 4:33am On Sep 17
food inflation rate has risen every month, from 13.17% in August of 2019 to 16% last month. It is projected to hit 20% by the first quarter of 2021,

All I know is the price of bread is going to be jumping like Jordon. Nigeria imports alot wheat. The current wheat policy has been a fail as well.

Who knows, by the time this administration’s tenure is up, we could be looking at a state of emergency driven by a full blown food crisis.

They might end up abondoning their failed policies when it becomes untenable. That's the only reason they stopped the subsidies.

2 Likes 1 Share

Re: Food Inflation Up By 108% Since 2015, Despite Billions On Agriculture by helinues: 5:06am On Sep 17
Food inflation yet no scarcity... undecided

3 Likes 1 Share

Re: Food Inflation Up By 108% Since 2015, Despite Billions On Agriculture by bjtinz: 5:16am On Sep 17
I'm not holding brief for the govt, but I believe most of these measures are long overdue and should have been taken decades ago.

3 Likes

Re: Food Inflation Up By 108% Since 2015, Despite Billions On Agriculture by CodeTemplar: 5:40am On Sep 17
Same old problem of Nigeria. what is released at the top never trickles down to the masses. the bvn is the way to go. let govt start crediting individuals directly.
Re: Food Inflation Up By 108% Since 2015, Despite Billions On Agriculture by Abouwaza(m): 6:09am On Sep 17
Billions in individual's pockets not agriculture please

7 Likes

Re: Food Inflation Up By 108% Since 2015, Despite Billions On Agriculture by Aflix(m): 6:57am On Sep 17
Buhari supporters will still blame this on PDP.

2 Likes

Re: Food Inflation Up By 108% Since 2015, Despite Billions On Agriculture by History555: 7:29am On Sep 17
How much of these billions really got to farmers. Don't you still see people farming with hoe and cutlass. Farming is difficult work especially now with heartless herdsmen

14 Likes

Re: Food Inflation Up By 108% Since 2015, Despite Billions On Agriculture by ehinmowo: 9:45am On Sep 17
Having Buhari as a president of any country should be included in one of 1000 ways to die!

I have come to realize that northeners (especially northern Moslims) puts religion ahead of reality. Even if they are dying, they wouldn't kick against their own. I could remember how thousands of Bayelsans came out en mass to protest against fuel hike during GEJ time.

If Buhari was a southerner, he wouldn't have entered the second time. because he was a monumental failure the first time. But once some politicians dangle religious card in the face of northerners, forget. They all follow sheepishly.

36 Likes 5 Shares

Re: Food Inflation Up By 108% Since 2015, Despite Billions On Agriculture by megareal: 9:45am On Sep 17
Come, were you expecting good news before? There is nothing new under Buhari's government. undecided

3 Likes

Re: Food Inflation Up By 108% Since 2015, Despite Billions On Agriculture by Eriggs: 9:45am On Sep 17
compiled by foolish sets of wailers. una oga jonathan and the other thief don move on with their election losses, but hungry children are still in pains posting fake news daily, dey know u will push it out for dem dey on standby. foolish wailers.
pple mumu sha, dey just read headlines and statt crying.

1 Like 3 Shares

Re: Food Inflation Up By 108% Since 2015, Despite Billions On Agriculture by Kingpele(m): 9:45am On Sep 17
Chai, our government is just doing trial and error, why not repel the land use act first, then invest in modern agricultural equipment for farming... As a matter of urgency stop herders from damaging farm products... This government officials are just clueless

5 Likes

Re: Food Inflation Up By 108% Since 2015, Despite Billions On Agriculture by DennisEche(m): 9:45am On Sep 17
IPOB MISCRANTS PEDDLING LIES AGAINST THE GOVT OF PMB, THE GOVT OF PMB HAS INVESTED SO MUCH ON AGRICULTURE BUT BECAUSE OF THE LARGE VOLUME OF INVESTMENT NIGERIANS CAN'T SEE IT. UNDER THIS GOVT THE PRICE OF AGRICULTURAL PRODUCE IS AT IT LOWEST, RICE, BEANS AND OTHER FOOD STUFFS.
A PLATE OF FOOD IN KANO WITH FIVE BIG MEAT IS SOLD FOR 30 NAIRA ONLY. LIA MOHAMMED

5 Likes 1 Share

Re: Food Inflation Up By 108% Since 2015, Despite Billions On Agriculture by HIGHESTPOPORI(m): 9:45am On Sep 17
Incompetence.Goverment of we will do and not will have done.
Re: Food Inflation Up By 108% Since 2015, Despite Billions On Agriculture by Macsjebs(m): 9:46am On Sep 17
Macsjebs:
way too high, may God almighty heal our economy and help businesses like ours stay afloat

Kindly see my signature, thanks
Re: Food Inflation Up By 108% Since 2015, Despite Billions On Agriculture by crossfm: 9:46am On Sep 17
One word,change.
Re: Food Inflation Up By 108% Since 2015, Despite Billions On Agriculture by BlackfireX: 9:46am On Sep 17
Why is PDP and ipob painting this serious govt bad with stuuupid data..



We the youth are behind our Darling president

2 Likes 1 Share

Re: Food Inflation Up By 108% Since 2015, Despite Billions On Agriculture by Mekudi: 9:46am On Sep 17
Responsible family men understand the inflation better shocked grin.
This is the worst time to get married, imagine all income going into feeding, it's not funny

9 Likes 1 Share

Re: Food Inflation Up By 108% Since 2015, Despite Billions On Agriculture by MASTAkiLLAh(m): 9:46am On Sep 17
This is what you get when a dunce runs the affairs of a country cool

4 Likes

Re: Food Inflation Up By 108% Since 2015, Despite Billions On Agriculture by whatmoreng: 9:47am On Sep 17
The change they voted for.
Re: Food Inflation Up By 108% Since 2015, Despite Billions On Agriculture by sotall(m): 9:47am On Sep 17
K
Re: Food Inflation Up By 108% Since 2015, Despite Billions On Agriculture by Horlayhemy(m): 9:47am On Sep 17
The people piloting the national affairs are a monumental scam. They are Hushpuppy's senior colleagues

1 Like

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