Nigeria’s Food Crisis: FCCPC Asks Government to Allow Food Importation

The Federal Competition and Consumer Protection Commission (FCCPC) has made a compelling appeal to the Federal Government to reopen the country’s borders, enabling the legitimate importation of food items to address the growing hunger crisis in Nigeria.

This call was made during an advocacy meeting with traditional rulers and other stakeholders at the Emir’s palace in Bauchi.

Acting Executive Chairman of the FCCPC, Adamu Abdullahi, highlighted the Commission’s ongoing efforts in advocacy and public awareness regarding price gouging and other unfair trade practices in Nigerian markets. He noted that reopening the borders would facilitate the importation of food, potentially stabilizing market prices and easing the burden on Nigerian consumers.

The FCCPC’s visit aimed to sensitize stakeholders on their rights and help them identify counterfeit products and proper channels for lodging complaints.

Abdullahi explained, “As mediators, we ensure that substandard products are repaired, replaced, or refunded to the consumer if they are unsatisfied with their purchase.”

He also expressed concern about the escalating commodity prices due to the recent appreciation of the naira against the dollar, calling the situation unacceptable.

“The FCCPC remains dedicated to promoting fair competition, protecting consumers, and fostering a regulated marketplace. We encourage citizens to be vigilant and actively report any violations,” Abdullahi added.

Traditional Rulers’ Concerns

The Emir of Bauchi, Dr. Rilwanu Adamu, echoed these concerns, noting the rising prices in markets, particularly for food items, which are causing hardship for citizens. Represented by the District Head of Lame, Alhaji Yakubu Aliyu Lame, the Emir urged the Federal Government to take urgent action to reduce food prices, stressing the suffering of ordinary Nigerians.

He assured that the traditional institution in the state is ready to help raise public awareness about the Commission’s activities to ensure the message reaches the targeted audience.

Economists’ Perspectives

Economists agree with the FCCPC’s call, emphasizing the urgent need for food importation to fill the widening gap. Financial expert Kalu Aja highlighted that food inflation has reached 40%, questioning why the government imports fuel but not food.

“How can food inflation be 40% and the federal government has no concrete and clear plan to reduce it? Or will they share billions to State Governments to buy rice from local markets which will increase local inflation?” he asked.

Aja outlined a multi-step approach to tackle the challenge of food insecurity head-on:

• Eliminate insecurity in food-growing areas to boost supply.
• Import food to cover the fall in supply as the fight against bandits continues.
• Implement agricultural policies to boost yields, including better storage and seeds.
• Invest in targeted infrastructure to improve food delivery from farms to factories and cities.

“Imports are a short-term solution to address the fall in food supply as the military tackles bandits and terrorists,” Aja emphasized.

The Impact of 40% Food Inflation

The 40% food inflation is having profound implications for the Nigerian economy, significantly affecting the spending power of its citizens. As food prices escalate, the average Nigerian household is being forced to allocate a larger portion of their income to basic sustenance, leaving less for other essential needs such as healthcare, education, and transportation. This shift, economists note, exacerbates poverty and reduces the overall quality of life.

Also, high food inflation increases operational costs for businesses reliant on local produce. Consequently, prices for goods and services across various sectors rise, further straining consumers’ already stretched finances. Experts note that this ripple effect stalls economic growth, as reduced consumer spending power leads to lower demand for non-food items, impacting businesses and potentially causing job losses.

Against this backdrop, criticism has continued to trail the government’s decision to restrict food importation as a way of boosting local food production, with many calling it counterproductive.

President Bola Tinubu had in February, reiterated his decision not to approve food importation, stating that his “administration is dedicated to evolving home-grown solutions to tackle our nation’s food security challenges head-on.”

Aja compared the situation to Nigeria’s inability to establish functioning refineries despite being an oil-producing nation, noting that it has not led to a ban on oil importation.

“Nigeria’s food output was not keeping pace with population growth, and this was even before ‘bandits’ made farming a risky activity. We can’t say ‘No imports’ and then do nothing,” Aja said.

A recently leaked document suggested that the federal government might lift some restrictions on food importation. However, its current attempts to quell the food crisis have centered on cash and food distribution. Financial experts argue that this approach will only compound the nation’s food insecurity.

“Releasing cash to buy local food worsens the problem as it increases prices. What is needed is more external supply. Internal supply can’t meet the demand,” Aja said.