President Bola Ahmed Tinubu’s committee on food security, as observed by the Centre for the Promotion of Private Enterprise (CPPE), has shown no significant influence on the escalating food prices in Nigeria. Muda Yusuf, Director of CPPE, commented on the latest headline and food inflation rates in Nigeria for May 2024, which recorded figures of 33.95 percent and 40.66 percent, respectively.
CPPE expressed concerns over the diminishing purchasing power of Nigerians amidst the persistent inflationary pressures. The economic think-tank cited various factors driving inflation in Nigeria, such as devaluation of the exchange rate, rising transportation expenses, logistical and supply chain impediments, fluctuations in the forex market, escalating energy costs, effects of climate change, insecurity in agricultural regions, seasonal variations in agricultural output, and structural impediments to production.
Highlighting the ongoing challenges, CPPE emphasized the pressing need for urgent action to address the alarming food security crisis. Despite the declaration of an emergency on food security by Tinubu in July of the previous year, the country continues to grapple with exacerbated food inflation, evident in the recent surge to 40.66 percent, as reported by the National Bureau of Statistics.
CPPE stressed the critical importance of implementing the government’s Inflation Reduction and Price Stability Plan to alleviate the inflationary pressures. The organization urged swift implementation of the proposed strategies, emphasizing the potential impact of these measures in moderating inflation.
Proposing specific recommendations, CPPE suggested revising tariff policies to offer concessional import duties on intermediate goods for industrialists and logistics sector investors. These proposals, already outlined in the draft Accelerated Economic and Sustainability Plan presented by the Coordinating Minister of the Economy, aim to provide relief and stimulate economic growth.