Are Nigeria's food security efforts bearing fruit?

The United Nations World Food Programme has projected a possible rise of 4 per cent in the number of hungry people in West and Central Africa from 2023 levels, estimating that about 49.5 million people could face food insecurity between June and August 2024. This alarming statistic has prompted a closer look at Nigeria's current food security situation, especially with the country's food inflation rate standing at 31.5 per cent. To shed light on the progress of efforts to combat these challenges, Kola Masha, the CEO of Babban Gona, recently joined CNBC Africa for an insightful discussion. Masha highlighted the pressing issue of rising food prices impacting the most vulnerable populations in Nigeria. He emphasized that the poorest Nigerians are spending a significant portion of their income on food, making the high food inflation particularly burdensome. The core challenge, as Masha pointed out, lies in the low levels of farm productivity in the country. Compared to similar developing nations in Latin America and Asia, Nigeria's farm yields are only between 20 and 25 per cent, indicating a dire need for enhanced agricultural productivity. One of the critical solutions proposed by Masha is the urgent need to unlock finance for farmers. He noted that farmers require access to capital to invest in high-quality inputs such as seeds and fertilizers to achieve optimal yields. However, the lack of financial support has been a major hindrance, with commercial debt to agriculture hovering between three to five per cent of all commercial loans. This stark disparity underscores the necessity of addressing the financing challenges within the agricultural sector. Furthermore, Masha drew attention to the broader economic issue of limited access to finance across various sectors in Nigeria. The country's low bank asset-to-GDP ratio of 15 per cent reflects a systemic problem affecting the entire economy. By contrast, countries like China and Thailand boast much higher ratios, indicating a more robust financial ecosystem conducive to economic growth. Addressing the finance gap not only in agriculture but across all sectors is vital to driving Nigeria's overall economic development. In discussing the other factors impacting agricultural productivity, Masha acknowledged the significant challenges posed by insecurity and climate change. He highlighted the recurring issue of flooding, which has long plagued the sector and hindered farming activities. Despite these challenges, Masha remained optimistic that with the right strategies, such as investing in high-quality inputs and mitigating climate risks, farmers can improve their yields and resilience. As the conversation touched on the potential for agricultural exports and the need to address the cost of living crisis, Masha emphasized the importance of making nutritious food accessible to all Nigerians. While time constraints limited the depth of the discussion, the dialogue underscored the multifaceted nature of Nigeria's food security challenges and the critical role that access to finance plays in driving sustainable solutions. Overall, unlocking finance emerges as a key theme in addressing Nigeria's food security crisis, with potential implications for the country's economic growth and stability.