According to the Abuja Chamber of Commerce and Industry, the ongoing increase in food prices is exacerbating poverty levels nationwide. Emeka Obegolu (SAN), the President of ACCI, highlighted the impact on small-scale businesses, noting that essential meals are becoming unaffordable for many.
ACCI expressed deep concern over the continuous surge in commodity prices, adversely affecting small business owners and escalating poverty levels. The rise in prices of staple food items is making basic meals unaffordable for numerous households, as stated by Obegolu in a press release issued in Abuja.
Official records from the National Bureau of Statistics indicate a food inflation rate of 35.41% in May 2024. However, observations on the ground suggest the actual rate exceeds 50%, underscoring the severity of the situation and its grim impact on livelihoods.
The drastic depreciation of the national currency, the naira, has been cited as the primary cause of this economic hardship, significantly reducing citizens’ purchasing power. This exchange rate volatility has disrupted businesses, increased production costs, and derailed economic growth projections, added Obegolu.
The chamber reported that Segun Olugbile, the CEO of Araba Technology, urged ACCI to take business-oriented steps against the food crisis and hunger in the Federal Capital Territory. Olugbile highlighted the multifaceted challenges including issues affecting farmers, herders, climate change, and high inflation contributing to the food crisis.
With around 24.7 million individuals facing food and nutrition insecurity across 26 states, urgent action is imperative. Olugbile emphasized the collaborative role ACCI could play with government and stakeholders to avert a deepening crisis and enhance food security in the region.
In response, Obegolu emphasized ACCI’s support services in training and advocacy to assist local businesses in navigating challenges and capitalizing on food sector opportunities for the benefit of its members.
A previous report by the NBS in 2023 highlighted that Nigeria had 133 million people in multidimensional poverty before the recent economic challenges. Concerns are growing that this number has surged over the past months.
Staple foods like cassava flour (garri) and beans were once affordable for the common man, but current prices are beyond reach for many. Obegolu stressed the urgent need for government intervention to address the escalating food crisis, warning of potential malnutrition and exacerbation of socio-economic challenges if prompt action is not taken.
He emphasized the critical importance of government intervention to tackle the rising food crisis, pointing out that the affordability of food directly impacts citizens’ well-being. The worsening food inflation crisis poses a severe threat to food security and worsens poverty levels, necessitating swift and effective government action to alleviate the populace’s suffering.