Nigeria and the global food
crisis
By KENNY ASHAKA, Kaduna
Monday, May 5, 2008
The UN Food and Agricultural Organisation (FAO), reported
that worldwide food costs rose almost 40 per cent in 2007
while grains spiked 42 per cent and dairy prices nearly 80
per cent. The World Bank said food prices are up by 83 per
cent since 2005. As at December, it caused 37 countries to
face food crisis and 20 to impose price control in response.
It also affected aid agencies like the UN's World Food Programme
(WFP). Because of soaring food and energy costs, it sent an
urgent appeal to donors on March 20 to help fill a $500 million
resource gap for its work.
Since then, food prices increased another 20 per cent and
show no signs of scaling down. For the world's poor, like
the people of Haiti, things are worse, people can't afford
food, they scratch by any way they can, but many don't make
it and they are starving.
Though there is no protest on Nigeria’s streets today,
the country is in the group that cannot feed itself and, therefore,
relies on import of staple food, particularly rice to feed
her citizens. The price of rice has increased by 80 per cent.
The projected national demand for rice in the country is put
at 4.64 million metric tons annually, while current rate of
consumption is put at 2.3 metric tons.
Current local production of the commodity is a meager 525,000
metric tons per annum. It follows that the country will have
to import the shortfall which is projected to cost $267 million.
However, the question is which country will sell to Nigeria
and at what price?
Nigerian government’s response to the food crisis was
ad hoc in nature, showing that there is no concrete agricultural
policy in place in the country.
According to the Minister of Agriculture and Water Resources,
Sayyadi Abba Ruma, the "government will facilitate provision
of lands for large scale farming and co-operatives, while
it also intends to adjust import levies to reflect current
challenges in development of local production, the rice value
chain, especially by establishing agricultural processing
centres and agricultural parks."
This is like preparing for a war that has already started
and it is a demonstration of the nation’s lack of seriousness
on issues pertaining to agriculture. Easy flow of money from
the oil wells in the Niger Delta is said to have contributed
to the lack of seriousness about agricultural matters.
Though agriculture and food security is one of the seven promises
of the Yar’Adua administration, after almost one year
in office, nothing concrete is seen yet in that direction.
Former President Obasanjo with all his farming credentials
ruled the country for eight years and left office with agriculture
taking the back seat. Nothing much has been gained from the
highly publicised World Bank assisted FADAMA project as a
result of lack of commitment to agricultural matters.
This is May, and the planting season has indeed started. But
all that is coming from the agriculture ministry are stories
of fertilizer contract scandals and not the product being
distributed to farmers. The colonial administration built
rails to evacuate agricultural products from the hinterlands
to the coast for exports. They also built roads for the same
purpose. Today, the rails are in bad shape and road development
almost abandoned. As a result, most agricultural produce cannot
easily be evacuated to markets where they are needed leading
to huge waste during period of good harvest.
The Federal Government is to spend about N80 billion for the
importation of 500,000 metric tonnes of rice from Thailand
and other parts of the world within the next five months.
Government has also set aside 1.68 percent of the natural
resources fund for agricultural research and the development
of the agricultural sector over the next four years.
Available data shows that the importation of rice has dropped
significantly in recent months for several reasons which include
the decision of rice exporting countries to slow down sales
in favour of local consumption and storage and fears by local
importers that Nigerians may not be able to afford the imported
products at the present prices.
In the last one month, only two ships brought rice to the
Lagos ports, which serve as the key entry point for the consignment.
Also, the shipping position released by the Nigerian Ports
Authority (NPA) revealed that out of 76 ships billed to discharge
at Lagos ports, none will be bringing in rice in the next
three weeks.
The quantity of rice coming into the country has reduced drastically
since the beginning of the year, resulting in the scarcity
of the product in the markets. Already, the price has gone
up to N12,200 a bag from the N5,500 it was sold in the market
last December. The decreasing quantity of rice at the ports
has been compounded by the high tariff placed by the Federal
Government. Due to the 100 percent duty on the commodity,
most importers no longer bring in the consignment through
the seaports. They prefer to smuggle it through various unapproved
routes.
Amidst the growing difficulty in sourcing rice in the international
market, government did not give details of how it can source
the massive consignment it hopes to import.
The decision to import rice in large quantity was taken at
a special session between President Umaru Yar’Adua,
state governors, Michael Aondoakaa, Attorney General and Minister
of Justice, Sayyadi Abba Ruma, Minister of Agriculture and
Water Resources, and Shamsudeen Usman, Minister of Finance,
who was represented by Remi Babalola, Minister of State for
Finance.
Briefing state house correspondents after the meeting at the
Presidential Villa, Abuja, Olusegun Agagu, governor of Ondo
State, accompanied by Ibrahim Shekarau, governor of Kano State
and Godswill Akpabio, governor of Akwa Ibom, and Ruma, said
the move by the government was to address the increasing price
of rice and also to guarantee enough supply of the commodity
in the country.
"To save the situation and further ameliorate our condition,
government will import 500,000 metric tonnes of rice immediately
in addition to what is available at home and in addition to
what we are producing because we all know that there are several
states in the country that produce rice. We will encourage
our people who produce rice to grow more. The rains are here
and rice takes about two to three months to mature, our people
will be encouraged to grow more," he said.
He added that, "because we already envisage some shortfall
in supply, we therefore, took a decision to import 500,000
metric tonnes of rice to be sold to our people at subsidized
rates. These two measures are for the immediate measure to
cushion against the escalating price in the markets and make
food available to the people."
Besides the importation of the 500,000 metric tonnes of rice,
the governor said government is also expected to release additional
11,000 metric tonnes of grain from the nation’s strategic
reserve to create more availability foodstuff to the consumers.
For the medium term, the governor said "a drastic decision
was taken that the Federal Government through the Ministry
of Agriculture and Water Resources with the states and research
institutes are to ensure that in the medium to long term,
Nigeria will not produce only enough food for her people but
should be in a position to export to other countries."
The respective states, he disclosed, "have been challenged
to increase their budgetary allocation for agriculture substantially
over the next four years. The contribution from the Federal
Government in addition to the contributions from the states
should definitely have very positive impact on our food production
capabilities and food security will be addressed permanently."
But Owei Lakemfa, Head of Information of Nigeria Labour Congress
(NLC), said Nigeria has no business relying on food importation
to feed its population. "Our country is blessed with
good arable lands, excellent weather and resilient farming
population. What has been lacking is good support from the
government."
He said that the new measure must go beyond the usual approach
of simply throwing money at problems by providing emergency
food relief when crisis hit. He said farmers in Nigeria today
are planting less due to escalating cost of input such as
fertilizer and insecticides. "I think higher percentage
of money set aside by the government should go to support
farmers now that we are in the planting season, so that in
the coming year we avert food shortages."
He said Nigeria must take advantage of the United Nations’
plan to set aside $1.7 billion to provide seeds for farmers
in the world's poorest countries, particularly Africa to encourage
farmers to plant more. The United Nations’ Secretary-General,
Ban Ki-Moon has said that efforts were needed to focus on
Africa, which could double food production over a few years.
He said it will "cost a relatively modest $8 to $10 billion
annually.
Ban said the food crisis has a number of causes, including
climate change, long spells of drought, changing consumption
patterns in major developing countries and the planting of
crops for biofuel.
He said he hoped world leaders would convene at a June meeting
in Rome to find ways to stem the food crisis. He said the
international community had previously not listened to warnings
from the U.N.'s Food and Agriculture Organisation and others.
While lamenting the crippling food crisis in the country,
Chukwudi Ebeleuwa, a dealer in foodstuffs said, "we are
now importing at twice the price at which we were importing
about four months ago. That is why the price increased by
over 200 percent. You know that we sell according to the price
we bought because we are in business to make profit. If we
buy at a cheap rate, we also sell at a cheap rate but if we
buy at an astronomical rate we cannot help but sell that way."
However, Ebeluwa noted that rather than being on the receiving
side of crunch, Nigeria should be in the league of Thailand,
China and other countries that have sufficient rice and other
foodstuff to meet their internal demand. "I feel that
the problem we have is because government abandoned the rice
farms in the country. Nigeria has all it takes to be producing
and exporting rice. Rice grows in Abakaliki in Ebonyi State
and Bende in Abia State. If government had taken interest
and developed these farms into large scale plantation,we will
have enough to eat and even export."
According to him, what government should do is to go back
to the time of farm settlements and begin to develop farm
settlements so that Nigeria could once again achieve self-sufficiency
in food production.
He said Nigeria could not claim to be the giant of Africa
while it cannot feed her citizens.
"Whenever I hear that Nigeria is the giant of Africa,
I always have a good laugh. A giant that cannot feed itself?
To me, that Nigeria is the giant of Africa is nothing but
delusion of the highest order. A giant should first of all
be able to feed itself and relatively be independent of other
countries and not whenever other countries cough, it catches
cold’’, he said.
To Bolade Olajide, member, National Union of Food Beverages
and Tobacco Employers (NUFBTE), the food crisis which Nigeria
is currently experiencing is an embarrassment to the governments
at all levels. He said that the crisis was a glaring evidence
that successive governments in the country have strayed from
the goal of governance, which is taking care of the welfare
of the people as well as providing security for their lives
and property.
He said that before the discovery of oil in the country, the
nation’s economy was sustained by agriculture, adding
that even then, the economy was robust.
His words: " The food crisis that we are currently experiencing
is a shame to the successive governments in the country, except
the First Republic.
Before the discovery of oil, agricultural products such as
the groundnut pyramids of Kano, the cocoa plantations in the
West and palm oil in the East sustained our economy. With
these agricultural products, Obafemi Awolowo, Michael Okpara
and Ahmadu Bello were able to make landmark achievements.
Chief Awolowo was able to introduce and sustain free education
with the revenue that came from cocoa. Dr Okpara was able
to build industries in every nook and cranny of the former
Eastern Nigeria with revenue from palm oil, but since the
discovery of oil, the groundnut pyramid, the cocoa and the
palm oil plantations have all disappeared and what we have
now is a mono-economy. We now depend solely on petroleum.
This is dangerous for a country as blessed as Nigeria."
For Chikezie Onyeabor, a business man, Nigeria has not been
able to feed itself in spite of its potentials as result of
the neglect of agriculture by the government.
Onyeabor said that in 2007, a whoping sum of N50 billion was
budgeted for agriculture while most of the farmers in the
country did not receive a kobo.
He said that the high price of food items could be one of
the ways that God wants to use to expose those who have been
using farmers to milk the country dry.
"Personally, I can say that the sudden increase in the
price of foodstuffs in the country could be an act of God.
What I mean by an art of God is that for a long time now,
top government functionaries have been using agriculture to
milk the country dry.
For instance, last year we heard that N50 billion was budgeted
for agriculture but investigations revealed that the figure
only existed on the pages of the newspapers as no farmer received
a kobo from the budget. I feel that the food crisis might
get to a stage that people would begin to ask questions about
what have been happening to all the billions that we heard
had been budgeted for agriculture."
According to him, if government has been using the money budgeted
for agriculture in the sector, there is no way Nigeria would
be in food crisis.
Rice is not the only commodity causing global headache. The
prices of bread and other confectionaries are gradually hitting
the rooftop as well. Wheat, for instance, has hit an all-time
high above $12 a bushel with little relief ahead in spite
of a temporary pullback in price.
The US Department of Agriculture forecasts that global wheat
stocks this year will fall to a 30 year low of 109.7 million
metric tons; USDA also projected US wheat stocks by year end
2008 at 272 million bushels, the lowest level since 1948.
What does this portend for a country like Nigeria, as millions
rely on baked bread for breakfast? It definitely means that
bread may soon disappear on the breakfast menu of most Nigerians.
Corn and Soybeans are also at record levels; soybeans are
at over $15 a bushel; corn prices shot above $6 a bushel as
demand for this and other crops soar in spite of US farmers
planting as much of them as possible to cash in on high prices.
Forty-three per cent of corn production is for livestock feed,
but about one-fifth is for biofuels according to the National
Corn Growers Association (NCGA). Other estimates are as high
as 25 – 30 per cent compared to 14 per cent two years
ago, and NCGA estimates one-third of the crop in 2009 will
be for ethanol, not food. It's fueling US and world food inflation
with five year forecasts of it rising even faster.
But for how long would the rise in food prices last? The UN
Special Rapporteur on the right to food, Jean Ziegler provided
an answer in his comments to the French Daily Liberation.
"We are heading for a very long period of rioting, conflicts
(and) waves of uncontrollable regional instability marked
by the despair of the most vulnerable populations." He
noted that even under normal circumstances, hunger plagues
the world and claims the life of a child under age 10 every
five seconds. Because of the present crisis, we now face an
imminent massacre."
One fact is obvious from this crisis and that is that the
era of cheap food is over. All over the world, surging food
prices have caught mankind napping threatening to wipe out
food, the most crucial of man’s basic of needs off the
table.
For most, staples such as rice, beans, corn, wheat, and other
farm produce are indispensible in the daily menu of almost
all families. For them to get out of the reach of the common
man is something that is difficult to imagine.
Where does this current food crisis leave the United Nation’s
Millennium Development Goals (MDGs) which seek to reduce poverty
significantly by 2015? The MDGs as we know them seek to, among
other things, enhance economic empowerment of the poor, provide
adequate healthcare for mankind and by so doing reduce the
factors that threaten the survival of common man.
But with the current global food crisis, the MDGs have come
under threat of failure. It is feared that rising food costs
may cancel the aims already in motion toward the goal of cutting
world poverty by 2015. If anything, there are indications
that more people could be forced deeper into poverty. From
the look of things, eonomic successes which India and China
have enjoyed of late presupposes that demand for food grains
is likely to double, putting the world under more serious
global food scare.
The MDGs which every country including Nigeria is trying to
achieve by 2015 is likely to be endangered. Poverty already
grinding populations in Asia and Africa is most likely to
exacerbate.
The present food crisis has ultimately provided a reminder
to our government and policy makers that for the country to
at least partly actualize its millennium development goals,
agriculture must attract more than cursory attention.
It also brings to the fore the notion that a nation that willingly
or unwillingly leaves the feeding of its populace in the hands
of foreign producers is doomed. Nigeria must rise up and plan
towards food sufficiency in future. There can be no better
option than massive farming of the large arable land extensive
mechanised agriculture. The present food crisis calls for
affirmative action in the area of food production. It cannot
be postponed.
|