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Despite food crisis, Nigerian govt rejects imports, backs clampdown on hoarders

Published

9 months ago

February 16, 2024

Nigerian government has rejected the option of the importation of food as part of strategies to address the high cost of foodstuffs and the economic hardship troubling the country.

This was one of the decisions made during President Bola Tinubu, Vice President Kashim Shettima, and state governors’ emergency meeting on Thursday at the Aso Rock Villa in Abuja.

The government also formed a committee made up of the Inspector General of Police, the Director-General of the Department of State Services, and the National Security Adviser as part of an effort to crack down on traders hoarding grains.

Meanwhile, the All Farmers Association of Nigeria and organised private sector have backed the decision to forgo importing food as a means of addressing the severe food crisis the country is currently experiencing.

After the discussion, Mohammed Idris, the Minister of Information and National Orientation, told State House Correspondents that bringing in food would just make the already fragile economy worse.

Idris announced earlier on February 8 that the administration would import necessary supplies to supplement shortages following the release of 102,000 metric tonnes of food items nationally, after a meeting of the Special Presidential Committee on Emergency Food Intervention at the Presidential Villa.

“Now, the third item is that the government is also looking at the possibility, if it becomes necessary, as an interim measure in the short run also to import some of these commodities,” he had said.

Nigeria is currently battling a cost of living crisis due to the country’s currency (Naira) falling to record lows and the skyrocketing of food prices. Its inflation rate surged further in January to hit 29.90% annually, with food inflation rising to 35.41 percent during that time from 33.93 percent in December 2023.

Related Topics:Featured Food crises inflation Nigeria

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VenturesNow

Food prices drive second straight monthly hike in Nigeria’s inflation

Published

2 days ago

November 17, 2024

Ifeoluwa Dada

According to official statistics released on Friday, Nigeria’s inflation rate increased for the second consecutive month in October, rising to 33.88% in annual terms from 32.70% in September, mostly as a result of increasing food costs.

In an attempt to boost economic development and strengthen public finances, President Bola Tinubu devalued the naira and reduced subsidies, which caused inflation to spike in the second half of last year.

As the effects of the naira devaluation started to lessen in July of this year, a slew of hikes in the price of petroleum and devastating floods that destroyed crops once again exacerbated pricing pressures, making the greatest cost-of-living crisis in decades worse in Africa’s most populous country.

According to the National Bureau of Statistics, price increases for basics such as rice, maize, bread, potatoes, and cooking oil prompted food inflation to surge from 37.77% in October to 39.16% year over year.

This year, more than 1.5 million hectares of agriculture have been damaged by torrential rain and floods in 29 of Nigeria’s 36 states, leaving millions hungry and displacing large numbers of people.

In an effort to curb inflation, the central bank has raised interest rates five times this year. On November 26, it is expected to make its final rate decision of the year.

VenturesNow

MTN financial report reveals drop in group service revenue

Published

2 days ago

November 17, 2024

Ifeoluwa Dada

Due to operational difficulties in Sudan and the depreciation of the Nigerian naira, MTN Group, Africa’s largest telecom provider, announced on Thursday an 18.5% decline in service revenue for the third quarter that concluded on September 30.

With 288 million users in 17 African regions, MTN said that its group service revenue dropped from 156.3 billion rand ($6.99 billion) in the same quarter of the previous year to 127.4 billion rand.

Despite stating that “the naira was less volatile on a sequential basis in Q3 than in preceding quarters,” the business reported a 48.7% decline in MTN Nigeria’s income due to the currency’s depreciation.

Due to a stronger Ugandan shilling than the previous year, Uganda’s largest contributor, MTN South Africa (MTN SA), expanded by a meagre 3.3%.

Due to “subscriber registration regulations in Nigeria and a decline in users in Sudan, where the conflict has displaced millions of people,” the business reported that its subscriber base increased by 1.6% to 288 million.

Given the higher demand in Nigeria despite the legal obstacles, MTN plans to increase its capital expenditures, which it expects would total between 28 and 33 billion rand for the entire year.