By: News Peddlers
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| Nigeria President Bola Ahmed Tinubu |
President Bola Tinubu declared a state of emergency on food security on Thursday, as the Federal Government increased efforts to combat food inflation following the removal of fuel subsidies.
Tinubu also agreed to include in the National Security Council's purview all issues concerning food and water availability, as well as affordability, as essential livelihood items.
This will be followed by the immediate distribution of fertiliser and grains to farmers and households in order to mitigate the effects of the subsidy removal.
Dele Alake, Special Adviser to the President on Special Duties, Communications, and Strategy, told State House correspondents on Thursday that this was the result of consultations with key stakeholders in the agricultural sector value chain at the Presidential Villa in Abuja.
Alake was accompanied to the briefing by the Special Adviser to the President on Revenue, Zacheaus Adedeji; the Special Adviser on Industry, Trade, and Investment, John Uwajumogu; the Acting Comptroller General of the Nigeria Customs Service, Wale Adeniyi; and Dr Dorris Anite, a member of the Presidential Advisory Council.
Explaining the development, the Presidential aide said, “Mr. President is not unmindful of the rising cost of food and how it affects the citizens. While availability is not a problem, affordability has been a major issue for many Nigerians in all parts of the country.
“This has led to a significant drop in demand, thereby undermining the viability of the entire agriculture and food value chain.
“Accordingly, in line with this administration’s position on ensuring that the most vulnerable are supported, Mr. President has declared, with immediate effect, the following actions: That a state of emergency on food security be announced immediately, and that all matters pertaining to food and water availability and affordability, as essential livelihood items, be included within the purview of the National Security Council.”
Clarifying the administration's short, medium, and long-term interventions, Alake stated that the administration intends to redirect some savings from the removal of fuel subsidies into the agricultural sector, with a focus on revamping the agricultural sector.
According to existing data, agriculture already accounts for approximately 35.21 percent of employment in Nigeria (as of 2021).
"The long-term goal is to double this percentage to around 70%," he added.
To mitigate the effects of the subsidy removal, parts of the interventions include the immediate distribution of fertilisers and grains to farmers and households.
Earlier on Thursday, the President told agriculture stakeholders that the country could no longer afford seasonal farming.
"We can no longer afford to have farming downtimes," says one farmer. Alake
"We will establish and support a National Commodity Board to review and continuously assess food prices, as well as maintain a strategic food reserve to serve as a price stabilisation mechanism for critical grains and other food items." "Through this board, the government will moderate food price spikes and dips," he explained.
The National Commodity Exchange, seed companies, the National Seed Council and research institutes, microfinance banks, food processing/agric processing associations, private sector holders and prime anchors, smallholder farmers, crop associations and fertiliser producers, blenders and suppliers' associations, and others are all on board.
He revealed that the administration would use its security architecture to protect farms and farmers, allowing them to return to their farms without fear of being attacked.
Concerning livestock farming, particularly cattle herding, Alake stated that the FG would work with states to establish ranches in areas where governments are willing to provide land. He also stated that grazing reserves will be established on the ranches.
"The government will transform our livestock business from an archaic to a modern, globally acceptable method."
"We will establish ranches in collaboration with state governments, with the federal government paying for the land," he said.
According to Alake, the Federal Government will activate land banks across the country, which currently have 500,000 hectares mapped, "to increase the availability of arable land for farming, which will immediately impact food output."
In response to journalists' questions, Anite clarified that the distribution of grains to farmers and households would be free of charge.
"Part of the savings from the removal of fuel subsidies is what we are using for this intervention," she explained. "The distribution will be free of charge to both households and farmers."
Meanwhile, the Central Bank of Nigeria has advised middlemen who are holding grains to release them because prices are expected to fall once the FG begins to distribute grains.
"Grains will be released immediately," said Folashodun Shonubi, a director of the apex bank representing the CBN Acting Governor. So the message is that for the middlemen and those who are storing these grains in order to create arbitrage and profit, now is the time to release them quickly, because once we release those that the central bank has, your prices will fall. So that middlemen who have it can quickly release it to the market so that people can take it before we release ours."
The news came just one week after the President signed four Executive Orders, one of which suspended the 5% excise tax on telecommunications services and the escalation of excise duties on locally manufactured goods.
Rolling out the President’s plans, Alake said , “Activation of land banks. There is currently 500,000 hectares of already mapped land that will be used to increase availability of arable land for farming which will immediately impact food output.
“Mechanization and land clearing- The government will also collaborate with mechanization companies to clear more forests & make them available for farming. River basins- there are currently 11 rivers basins that will ensure planting of crops during the dry season with irrigation schemes that will guarantee continuous farming production all year round, to stem the seasonal glut and scarcity that we usually experience. We will deploy concessionary capital/funding to the sector especially towards fertilizer, processing, mechanization, seeds, chemicals, equipment, feed, labour.
“The concessionary funds will ensure food is always available and affordable thereby having a direct impact on Nigeria’s Human Capital Index (HCI). This administration is focused on ensuring the HCI numbers, which currently ranks as the 3rd lowest in the world, are improved for increased productivity.”
According to him, the government has made plans for farm product transportation and storage.
He said, “The cost of transporting agricultural products has been a major challenge (due to permits, toll gates, and other associated costs). When the costs of moving farm produce is significantly impacted- it will immediately be passed to the consumers, which will affect the price of food- the government will explore other means of transportation including rail and water transport, to reduce freight costs and in turn impact the food prices.
As for storage, existing warehouses and tanks will be revamped to cut waste and ensure efficient preservation of food items. We will Increase revenue from food and agricultural exports. As we ensure there is sufficient, affordable food for the populace, we will concurrently work on stimulating the export capacity of the Agric sector.”
He added, “Transportation, storage and export will be improved by working with the Nigerian Customs, who have assured us that the bottlenecks experienced in exporting and importing food items as well as intra-city transportation through tolling will be removed. These are some of the immediate interventions this government will put in place to tackle this crisis. Principally, one of the major positive outcomes of these interventions will be a massive boost in employment and job creation.”
According to Alake, Tinubu’s mandate to create jobs for the teeming youth population will be achieved with between five to 10 million more jobs created within the value chain.
“In closing, this administration understands that food and water are the bedrock of survival and therefore is calling on all Nigerians to partner us in ensuring the success of this strategic intervention. This administration is working assiduously to ensure that Nigerians do not struggle with their essential needs,” he added.
Tinubu's mandate to create jobs for the teeming youth population, according to Alake, will be met with the creation of five to ten million more jobs along the value chain.
"In conclusion, this administration recognises that food and water are the foundations of survival and thus calls on all Nigerians to join us in ensuring the success of this strategic intervention." "This administration is working tirelessly to ensure that Nigerians do not go without basic necessities," he added.