Dr. Akinwunmi Adesina, President of the African Development Bank (AfDB), has expressed deep concerns about Nigeria’s move to import duty-free food, labeling it as “depressing” and warning against its potential long-term consequences.
Nigeria is grappling with a severe food crisis compounded by inflation rates soaring to 41%. This dire situation has sparked intense debate over the federal government’s policy to import food to stabilize prices.
Speaking at the Council of Anglican Provinces of Africa retreat in Abuja, Dr. Adesina noted that relying on food imports is not a sustainable solution for Nigeria’s food security issues.
Tekedia Mini-MBA edition 15 (Sept 9 – Dec 7, 2024) has started registrations; register today for early bird discounts.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
“Nigeria cannot rely on the importation of food to stabilize prices. Nigeria should be producing more food to stabilize food prices while creating jobs and reducing foreign exchange spending, which will further help stabilize the Naira,” Adesina stated.
He further stressed, “Nigeria cannot import its way out of food insecurity. Nigeria must not be turned into a food import-dependent nation.”
Dr. Adesina highlighted the vast potential of Africa’s food system, pointing out that Africa holds 65% of the world’s remaining uncultivated arable land. This land is crucial for feeding an estimated 9.5 billion people by 2050.
“It is clear therefore that unless we transform agriculture, Africa cannot eliminate poverty,” Adesina insisted.
He noted that the food and agriculture market in Africa is projected to reach $1 trillion by 2030, underlining the importance of leveraging agricultural resources to transform rural areas and diversify economies.
Last week, Nigeria’s Ministry of Agriculture announced plans to allow duty-free importation of food items such as maize, rice paddy, and wheat for 150 days. This measure aims to stabilize food prices in the market but contradicts President Tinubu’s earlier stance that Nigeria should produce its own food rather than rely on imports.
However, this policy shift has drawn criticism, particularly from local farmers’ associations.
The President of the All Farmers Association of Nigeria (AFAN) warned that food importation would erode the gains made in rice, maize, and wheat production. Similarly, the Rice Farmers Association of Nigeria (RIFAN) urged the federal government to support local rice farmers instead of resorting to imports.
The Escalating Food Crisis
The Nigerian food crisis has defied all efforts by the federal government, resulting in an unaffordable cost of food. Food prices in Nigeria have skyrocketed over the past year, with food inflation just over 40%, pushing millions into poverty and hunger.
An estimated 32 million people are expected to face severe hunger and malnutrition this year. The price of a 50kg bag of rice has surged significantly, reaching over N90,000. Year-on-year, the price of 1kg of loose rice has increased by almost 170%, according to the National Bureau of Statistics (NBS) Food Price Watch.
The government’s efforts, such as the closure of borders by the past administration helped increase local production, but it has not been enough to meet the demand.
The Deputy Chairman of AFAN, Lagos chapter, Mr. Shakin Agbayewa, highlighted that local production can only meet 57% of the 6.5 million metric tons of rice consumed annually in Nigeria.
“In Nigeria today, we consume close to 6.5 to seven million metric tons of rice on a yearly basis. Unfortunately, our local production is about 57 per cent, thanks to the closure of the border by the past administration. We still have a shortfall of about 43 percent,” he said.
As part of its food import plan, the government will move imported rice paddy to idle rice mills across the nation to increase supply and reduce prices. However, this move has sparked further debate about the best approach to achieving food security.
Over the years, the government’s initiative to restrict food import has failed to boost local food production due to multifaceted challenges ranging from insecurity to lack of sustainable farming techniques.
While Dr. Adesina focuses on long-term agricultural development, some economists who weighed in on the issue, warned that given the current hunger crisis emanating from insufficient local food produce, the government must allow food importation in the short term.
“He is making a policy statement but he called the food crisis ‘temporary’. The food crisis is beyond temporary, I dare say it’s now a national security issue. I don’t want imports, same way I don’t want to take an injection in my bum, but it is what it is,” economist Kalu Aja stated.