Boosting domestic food production key to curbing inflation-Expert

The CEO of AFEX, Ayodeji Balogun, has raised alarms regarding the escalating food prices across Nigeria and the broader African continent. He emphasized the importance of strategic actions that economic leaders can take to mitigate food inflation in the nation.

During a recent breakfast meeting focused on domestic markets, Balogun stated that if Nigeria could enhance its food production capabilities and manage production costs effectively, it would lead to more affordable food prices, enabling every Nigerian to enjoy three nutritious meals a day.

Food inflation in Nigeria has reached alarming heights, soaring to 40.9% in June 2024, up from 25.3% the previous year. This inflation surge is attributed to various factors, including increased transportation expenses, currency depreciation, and disruptions in food supply chains due to insecurity and climate issues.

Balogun remarked, “While some economists argue that inflation is decreasing, food prices remain stubbornly high. The first priority should be to address overall inflation, which the government has been making strides in. Following that, we must ensure food is priced reasonably.”

He highlighted that Nigeria’s agricultural sector faces a significant challenge in meeting the growing food demand, noting that the population is expanding faster than food production. “Currently, our food production is lagging behind our population growth rate. With a 3% population increase and only about 1% growth in food production, there will be a widening gap over the next decade.”

He pointed out that Nigerian food is among the most affordable in the Sahel region, leading to increased demand from neighboring countries, which exacerbates local price hikes. “We must boost our food output. With the right initiatives, Nigeria can emerge as a leading agricultural force in West Africa, similar to Brazil’s role in supplying Europe. Achieving President Bola Tinubu’s vision of a N1 trillion economy starts with increasing our food production from the current 40 million tonnes to 100 million tonnes.”

The breakfast meeting aimed to gather industry stakeholders and government representatives to discuss the future of food security in Nigeria. “We are here to assess current production trends, forecast commodity availability for the coming months, and explore collaborative strategies that can assist the government in ensuring food accessibility for both the industry and the public,” he concluded.