Analysing strategies to address Nigeria’s food inflation

Nigeria's food inflation rate dipped to 21.79 percent year-on-year in March, offering a glimmer of relief. However, the month-on-month figures rose by 0.5 percent to reach 2.18 percent, fueled by surging prices of essentials like garri, ofada rice, potatoes, and plantain flour. The inflationary pressure is a cause for concern, prompting experts to examine strategies to combat the issue. Chike Nwagwu, Director at Novus Agro, shared valuable insights on curbing food inflation, deciphering the 2025 flood warnings, and the potential ramifications on food production and pricing metrics. The staggering month-on-month spike in food inflation signals a challenging landscape. Factors such as a 4% surge in energy costs and a 9% depreciation of the Naira have contributed to the escalating food prices. With items like ginger and pepper witnessing a dramatic price surge due to supply constraints and external demand pressures, the inflationary trend transcends mere seasonal fluctuations. Addressing the efficacy of the national strategy in combating inflation, Nwagwu emphasized the critical need for policy continuity. Emphasizing the inadequacy of reactive measures, he underscored the necessity for a holistic, long-term approach to tackling Nigeria's food security conundrum. Highlighting initiatives like multi-seasonal planting and irrigation, Nwagwu called for sustained governmental focus and concerted efforts to mitigate the impact of changing climate patterns. The conversation delved into the importance of data monitoring and the introduction of specialized indices to enhance governmental decision-making. While acknowledging the government's short-term imperatives in averting immediate food crises, Nwagwu stressed the indispensable nature of integrated, forward-looking strategies encompassing irrigation infrastructure enhancements and flood water management. As Nigeria braces for the 2025 floods that threaten key agricultural regions like Kirby, Borno, and Eboe State, the imperative is to adopt a proactive stance. Nwagwu proposed transforming flooding challenges into opportunities by constructing reservoirs for irrigation purposes. By weighing the costs of perennial field losses against investments in flood mitigation measures, he advocated for strategic, cost-effective solutions to bolster Nigeria's agricultural resilience. In light of the prevailing tariff disputes and global economic dynamics impacting staple commodities like rice and maize, Nwagwu deliberated on the fiscal repercussions and trade diversification imperatives. Proposing an 'Africa first' trade policy, he called for streamlined intra-African trade regulations to unlock new markets and fortify the continent's economic resilience. Amidst the intricate web of economic challenges and climatic uncertainties, Nigeria stands at a critical juncture in redefining its agricultural landscape. The narrative of food inflation, flood risks, and trade complexities underscores the need for proactive, sustainable strategies to safeguard food security, ensure market stability, and propel economic growth amidst turbulent times.