Food inflation has risen by 60.88 percent under President Bola Tinubu’s leadership despite getting international loans worth $3.334 billion (N5.178 trillion) and garnering over $4.3 billion in investments to improve food production.
When Tinubu took office in May 2023, food inflation was 24.82 percent. It increased to almost 40% in November 2024.
This is based on figures from the National Bureau of Statistics.
This is happening as Nigerians are increasingly unable to buy essential food supplies, with many households struggling to make ends meet due to dramatic price increases.
This sharp increase in food prices contradicts the government’s ambitious efforts to address food security and agricultural development, raising concerns about the effectiveness of current economic policies, the impact of inflation, and the difficulties in turning financial assistance into tangible relief for Nigerians.
When Tinubu took office in May last year, he promised to promote food availability and security, stating that the government will produce approximately 500,000 hectares of farmland to battle hunger in the country.
“I am well aware that for some time now, the conversations and debates have centred on the rising cost of living, high inflation, which is now above 28 percent, and the unacceptably high underemployment rate.
“To ensure constant food supply, security, and affordability, we will step up our plan to cultivate 500,000 hectares of farmlands across the country to grow maize, rice, wheat, millet, and other staple crops,” Tinubu stated in his New Year address amidst other commitments.
However, the spiral increase in transportation costs caused by the withdrawal of fuel subsidies, significant devaluation of the naira, and widespread insecurity has resulted in a rapid increase in the price of all food commodities over the last 19 months.
Data from the National Bureau of Statistics’ Consumer Price Index report from May 2023, when Tinubu took office, to November 2024 showed that for 14 straight months, Nigerians spent more money each time they went to the market to buy food.
According to the breakdown, food inflation rose from 24.82 percent in May 2023 to 25.25 percent in June, 26.98 percent in July, 29.34 percent in August, 30.64 percent in September, 31.52 percent in October, 32.84 percent in November, and 33.93 percent in December 2023.
By January 2024, food prices had risen to 35.41 percent, then to 37.92 percent in February, 40.01 percent in March, 40.53 percent in April, 40.66 percent in May, and 40.87 percent in June, before falling to 39.53 percent in July and 37.52 percent in August due to the harvest season.
Food prices rose by 37.77 percent in September, 39.16 percent in October, and 39.93 percent in November, for a total increase of nearly 40%.
Despite the difficult situation, our correspondent discovered that the government obtained loans totalling $3.334 billion, or N5.178 trillion, from the World Bank and the African Development Bank during Tinubu’s administration to improve agricultural production, implement innovative farming techniques, and increase food sufficiency for Nigerians.
According to analysis, the World Bank granted $500 million for the Livestock Productivity and Resilience Support Project, which aims to increase livestock productivity and food security nationwide.
The World Bank Group’s Board granted a $500 million loan to Nigeria last Friday (December 13, 2024) to improve rural access and agricultural markets in the country.
According to information obtained from the Washington-based institution, the loan is intended for the Rural Access and Agricultural Marketing Project—Scale Up.
It is intended to bridge the gap between rural settlements and the larger economy, allowing for more efficient access to agricultural markets, schools, and hospitals while also boosting social cohesiveness among rural residents.
Similarly, the AfDB, led by President Akinwumi Adesina, has approved a $2.2 billion loan facility to fund its transformative Special Agro-Industrial Processing Zones in Nigeria.
He stated that phase two will transform Nigeria’s agricultural sector by establishing agro-industrial hubs that increase production, improve food security, boost living standards, and create jobs.
The scheme will be implemented in Cross River, Imo, Ogun, Oyo, Kaduna, Kwara, and Kano, and the Federal Capital Territory, with plans to expand to an additional 24 Nigerian states over the next three years.
In an interview with PUNCH, Adeshina stated that its agricultural projects would produce approximately five million metric tonnes of wheat, rice, and cassava for the country this year.
In addition, a $134 million loan was granted for seed and grain production in the country in November of this year.
According to the agriculture ministry, the fund will help farmers across the country enhance output of essential staple crops, improving national food security.
“The Federal Government has secured a loan facility of $134m from the African Development Bank to help farmers boost seeds and grain production in the country,” the statement read.
The government, through the Ministry of Agriculture and Food Security, also secured a $4.3 billion private-sector investment commitment to support private-sector development in fertiliser production, hybrid seed technologies, and agricultural finance.
The cooperation with Brazil’s Fundação Getulio Vargas will provide technical and financial support to one agribusiness in each of Nigeria’s 774 Local Government Areas for the next five years.
