In Nigeria, large-scale food manufacturers are urging for their inclusion in the distribution of palliatives aimed at the country’s agricultural sector to alleviate the soaring food prices.
Ayodele Musibau Abioye, Managing Director of BUA Food Plc, made this appeal during an interview on Arise TV, expressing concerns about the rising cost of food and its impact on the poor.
According to the National Bureau of Statistics, food inflation stood at 25.25 per cent in June.
In response to the crisis, President Bola Tinubu has pledged N200 billion to support small-scale farmers and drive down food prices.
His plan includes releasing 200,000 Metric Tons of grains, 225,000 tonnes of fertilizers, and seedlings to farmers across the 36 states and the Federal Capital Territory.
Additionally, his administration intends to invest N50 billion each to cultivate 150,000 hectares of rice and maize, as well as 100,000 hectares of wheat and cassava.
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However, Abioye argues that a comprehensive approach is required to tackle the food crisis effectively.
He emphasizes the need to address the entire food system, encompassing production, processing, distribution, and consumption.
While acknowledging the efforts to support agriculture, Abioye stresses the importance of extending palliatives to the manufacturing sector. Such support would help manufacturers offset their production costs, resulting in affordable and competitive prices for consumers.
The cost of production for manufacturers is a significant challenge, with BUA Food Plc reporting N188 billion in production expenses out of N320.9 billion in revenue during the first half of 2023.
Abioye identifies the high cost of power, particularly gas, as a key issue affecting manufacturers.
He suggests that reducing gas energy prices and providing additional manufacturing palliatives would positively impact the entire value chain, benefiting end consumers.
To ensure food affordability for the masses, Abioye calls for a comprehensive approach that considers all stakeholders in the food system. By implementing palliatives that extend across the entire value chain, the government can help stabilize food prices and alleviate the burden on the most vulnerable segments of society.
