Saturday, May 25, 2024

How bad roads, multiple taxes, extortion, others contribute to Nigeria’s food inflation – Report


In November, Nigeria’s inflation rate hit 14.89 per cent, with food inflation rising at 18.30 per cent.

Poor road networks, multiple taxes, poor storage facilities and harassment by security operatives are among the many challenges facing farmers in Nigeria, a new report has shown.

The new report, published Tuesday, was put together by SBM Intel, an Africa focused geopolitical research and strategic communications consulting firm focused on addressing the critical need for political, social, economic and market data, and big data analytics.

The report relied on data gathered from farmers and food transporters in seven states of the federation, including Lagos, Ogun, Oyo, Nasarawa, Osun, Katsina, and Benue.

The report said that agricultural products are easily perishable while production remains seasonal, and demand for farm produce is present throughout the year.

“Bridging this gap is adequate storage for farm produce, however, farmers of these outputs may be unable to acquire their own storage facilities,” it said.

“The absence of storage facilities forces farmers to sell their produce at low prices to middlemen who have their own warehouses. In our survey, almost half (47%) of the farmers interviewed had no access to any kind of storage facilities. Read more…

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