Rising Food Prices: A Simple Solution
By: Zayyad I. Muhammad
The rising prices of foodstuffs and the general high cost of living are global things. Nigeria is not immune to that; however, the Nigerian case seems different because of our poor basic infrastructure in roads, education, healthcare, security, and communication. Moreover, traditional solutions from established sources appear ineffective, prompting consideration of alternative off-the-shelf solutions.
The masses are looking at the governments at the federal, state, and local levels. In particular, many Nigerians are directing criticism towards the federal government due to the removal of petroleum subsidies and the decision to float the naira.
As earlier said, Nigeria is not immune to the current high cost of living in the world, but Nigeria can devise a local solution.
Some short-term measures to tackle the current hardships are: the government should engage in healthy discussions with farms, produce marketers, and large-scale farmers.
These two groups have significant stocks of foodstuffs in their warehouses in many locations, especially in the north. The government should engage them in purchasing their farm produce in a mutually beneficial manner (without imposing prices on them). The Presidential Order to the National Security Adviser (NSA) Nuhu Ribadu, the Inspector General of Police (IGP) Kayode Egbetokun, and the Director General of the Department of State Service (DSS) Yusuf Bichi to work with governors and go after those hoarding foodstuffs is a right step, but it is not a silver bullet; in fact, it’s an intricate issue—how do you differentiate between foodstuff hoarders and large-scale farmers and legitimate farm-produce marketers who have large warehouses where they keep their commodities before distributing them to other parts of the country?
A healthy engagement with legitimate farm-produce marketers and large-scale farmers is a simple and feasible solution to the soaring food prices.
After purchasing the foodstuffs in large quantities, the government can package the foodstuffs into 2, 3, and 5 kg bags and resell them to the masses at affordable rates throughout all the local government areas (LGAs).
Bulk purchases by individuals or groups should be discouraged. Ward levels, markets, and schools can serve at the reselling centres. In addition, politicians should be off the resell team, and no one should purchase more than 10 kg since the target is the common man looking for daily meals. This is workable if the government truly wants to reach the poor.
We should put it in our minds that, generally, the prices of foodstuffs shouldn’t have gone through the roof in the north, but what is currently happening in the north is that our farm produce—rice, corn, millet, beans, etc.—is being exported to neighbouring African countries due to the weak value of the Naira. It’s cheaper for buyers in nearby countries, while farm-produce marketers and large-scale farmers in Nigeria are making substantial profits. And, the high cost of logistics, illegal taxation, and checkpoint corruption are also major factors in contributing to the high prices of foodstuffs.
The above solution is a short-term measure; however, to sustain it, the real practicing dry-season farmers should be directly supported, since this is dry-season farming time. They can be supported with solar-powered pumps, fertilisers, seeds, extension services, pesticides, etc. This will further increase food production. And also increase the popularity of the government, including reducing tensions in the country.
On the other hand, we must tell ourselves the truth: no programme or project can help the government sustain social order without factoring the youth into the equation. The Bola Tinubu government should devise a means to create some quick, productive jobs for the massive youth in the country.
The federal government can launch job creation and empowerment programmes targeting young people and women in the following areas: agriculture, technology, entertainment, trading, and SMEs support and vocational training and support on welding, fashion, carpentry, home decoration, make-up, the lucrative northern traditional cap making , etc.
Agriculture: This should be divided into two segments: big and small. A group of graduates should be formed into “agribusiness entrepreneurs,” and then the government should provide them with land, offer all the necessary extension services, and also provide collateral or security for financial institutions to make the necessary funds available. This will promote the true generation of wealth through agriculture by young people. Secondly, women and young people rearing poultry and fish at home can be supported through the provision of highly subsidised feeds and more training on new techniques,.
In the area of technology, many young Nigerians are into coding, cryptocurrency, data processing, phone and computer sales, repairs, etc. The government can commission private sector firms to, on behalf of the government, train, equip, and provide capital to young people in this area.
Another way to create productive jobs to young people is in the creative industries. For some talented young people, all they need is publicity through the correct medium. The government can employ advertising and marketing firms to promote selected talented individuals across the country. Many young people are now involved in trading both online and offline. They can be trained, provided with additional capital, and promoted.
The government should avoid the usual government bureaucracy. A firm should be contracted to design the job creation programme, and then the firm should also employ other responsible and resourceful firms to carry out the implementation of the programme across the country. Thus, the government will only deal with one firm, which will ensure professional services are offered in the implementation of the programme.
To secure quick funding for implementing this programme during these challenging times, the government can explore various avenues. Firstly, the Federal Government and its Ministries, Departments, and Agencies (MDAs) can leverage their underutilised assets, such as scrap assets, derelict buildings, abandoned structures, and damaged movable assets nationwide. Identifying, valuing, and disposing of these assets could generate substantial revenue for the programme implementation.
Additionally, the government could consider issuing special bonds and tapping into pension funds under the management of Pension Fund Administrators (PFA) and Pension Fund Custodians (PFC). Exploring partnerships with international donors and foundations, particularly in the Middle East and Asia, could also provide valuable funding opportunities, especially with expert guidance.
Zayyad, a public affairs analyst writes from Abuja
