Tackling food inflation in Nigeria

As rising food prices continue to plague the economy of Nigeria, CEO and Board Chair of IDH, Dean Wensing, reveals that the impact is not only felt by consumers but has a deeper effect on farmers. In a recent interview with CNBC Africa, Wensing highlighted the importance of creating an ecosystem that supports smallholder farmers to better absorb the shocks of inflation. He stressed the significance of investing in raw material production and value addition to combat the challenges faced by farmers and consumers alike. With food inflation currently hitting around 40% to 50%, the strain on disposable income is evident, especially for those with limited resources. This situation underscores the urgency for Nigeria to adopt strategies that promote food security and self-sufficiency by reducing food imports and ramping up local production. Collaborating with both private sector partners and the government, IDH is working towards enhancing the productivity and resilience of smallholder farmers by focusing on sustainable practices and creating a supportive ecosystem that addresses critical needs such as access to finance and market opportunities. One key strategy employed by IDH is the concept of block farming, where smallholder farmers are grouped together to form larger, more feasible operations that mitigate risks for financial institutions. Additionally, the organization is pioneering the establishment of a seed capital facility in Nigeria, aimed at de-risking investments in smallholder agriculture to attract more funding from banks. By bridging the gap between farmers and financial institutions, IDH is facilitating collaborations that drive growth and sustainability within the agricultural sector. An exemplary initiative in the cassava sector showcased how a coalition of industry players, led by IDH, successfully transformed the industrial cassava market by aligning supply with demand and ensuring product quality and sustainability standards were met. This model is now set to expand to other agricultural commodities in Nigeria, propelling the country towards a more robust and self-reliant food system. Wensing's vision extends beyond individual sectors, as he spearheads the National Food System Transformation Alliance, a unified effort to replicate successful models across various food sectors in Nigeria. The Alliance aims to revolutionize the entire food industry by harnessing market demand, mobilizing investments, and fostering sustainable practices. Through strategic collaborations and innovative solutions, IDH is paving the way for a more resilient and prosperous agricultural landscape in Nigeria.