Food inflation: NSA, 36 states launch joint action

The 36 state governors have agreed to work closely with the Federal Government to harmonise levies, eliminate illegal checkpoints, and enhance the free flow of goods across states as part of efforts to address food security issues across the country.

This comes as the Chairman of the All Progressives Congress Governors Forum and Governor of Imo State, Hope Uzodimma, stated that both the Progressive Governors Forum and the Nigeria Governors’ Forum agreed on the urgent need to adopt the long-standing proposal for a state-level security system to support federal initiatives.

Food inflation continues to strain household incomes across Nigeria, despite a technical drop in the year-on-year national average, which stood at 21.14% in May.

This sharp drop from 40.66% in May 2024 is largely due to a change in the base year, which affects year-on-year comparisons.

However, the month-on-month rate rose slightly to 2.19%, compared to 2.06% in April, reflecting ongoing price pressures in specific food items.

At the sub-national level, several states are witnessing sharp increases in food prices. What is even more striking is that many of the states experiencing the highest food inflation are also major producers of food crops, highlighting a disconnect between local production and affordability.

While national food inflation appears to be moderating due to statistical base effects, real-time price pressures are intensifying in several states. Supply disruptions, insecurity, and high transportation costs remain key drivers of food inflation across Nigeria.

According to the National Bureau of Statistics, prices of staple items like yam, pepper, cassava, and maize remain high, with varying pressures across regions.

Speaking under the Nigeria Governors Forum, led by Kwara State Governor, AbdulRahman AbdulRazaq, the governors disclosed after a meeting with the National Security Adviser Nuhu Ribadu and other key stakeholders on Thursday that widespread checkpoints, unlawful levies, and inadequate infrastructure were major factors driving food price inflation and disrupting the food supply chain.

In a communiqué delivered by Lagos State Governor Babajide Sanwo-Olu, the NGF voiced concerns over the World Bank’s failure to fulfill its funding commitments under the Nigeria Community Action Recovery and Economic Stimulus programme.

He stated, “The Forum received a briefing from the National Security Adviser, Nuhu Ribadu, accompanied by the Honourable Ministers of Defence, Agriculture, Livestock Development, and Transportation, on the rising cost of food and livestock transportation across the country.

“The presentation revealed that the proliferation of checkpoints, illegal taxation, and poor infrastructure are key contributors to price inflation and inefficiencies in the food supply

chain.

“The NSA noted that a high-level inter-ministerial committee has been established to address these concerns and has submitted its recommendations for the endorsement of the Forum.