Nigeria is currently grappling with the worsening increase in the prices of food items and basic services. The increasing cost of food items has greatly affected the living standards of the people. Worst hit are low income
earners and rural dwellers, many of whom manage to eat once a day. As a result, more people are thrown into the poverty circle almost on daily basis.
Recent Data from the National Bureau of Statistics (NBS) shows that prices of food items that have gone up in recent time include those of bread, cereals, potatoes, rice, cassava, egg, meat, fish, fruits, oils, (palm oil, groundnut oil, soya bean oil ) fats and vegetables. An average Nigerian consume these items daily. For instance, yam and cassava are used for the production of pounded yam, fufu and garri respectively which are
consumed by a large segment of the society.
NBS December 2022 inflation figure released last week showed that inflation dropped to 21.34% from 21.47% recorded in November, 2022.
The “All items less farm produce” index or core inflation stood at 18.49% a 24.8 basis points higher than the 18.24%recorded the previous month. In the same vein, on a month-to-month basis, the percentage change in the
All items index in December 2022 was 1.71%, which was 0.32% higher than the 1.39% recorded in November 2022.
The food inflation rate for the month under discussion was 23.75% on a year-on-year basis which was 6.38% higher than the 17.37% recorded in December 2021.
Late last year, the NBS data showed that over 133 million Nigerians are poor representing about 63% of the estimated 200 million population. Earlier in 2021, the World Bank had said rising food inflation would push additional 1million Nigerians into poverty line by the end of 2022, but government did nothing.
On several occasions in the past, I had advocated finding alternatives to oil money following the volatility in the global oil market. I had further argued that our problem in Nigeria was not money but what to do with it. Do we
share it immediately or reserve some for future use?
This issue was the bone of contention among political leaders when the Sovereign Wealth Fund was introduced. What other oil producing nations did better than us was they took some resources from oil and invested in
other critical sectors to yield revenues not subject to the same risks as our dominant source of revenue.
Markowitz the renowned economist explained in Portfolio Theory that to obtain a balanced portfolio, that is one with the minimum amount of risk for a given desired level of return or revenues, one needs to invest in not
less than 20 stocks. Diversification beyond this point makes little difference to the riskiness of the portfolio.
In real life, diversification involves the diversion of presently scarce resources from parties in control to sources that may benefit others rather than themselves. Resistance is thus guaranteed, and only the interplay of
politics and Political Will can determine the outcome.
Nigeria faces two major problems: One is the chronic lack of investment expertise among our politicians resulting in the saying that “our problem is not money but how to spend it”. The other is a direct lesson from Machiavelli, the Italian Prince, when he said that “there is nothing more difficult to implement than reform”. This is because, reform attacks privilege, of which we have many patrons in Nigeria, and seeks to give voice and opportunity to future generations, either still unborn or too weak to participate at the moment. Or how else would one explain the continuous payment of fuel subsidy as against resuscitating the moribund refineries, at a time when the nation can hardly fund its annual budgets?
While the Federal Government is clamouring for reform, critics are attacking the reform on the basis that implementation would be a problem. However, the first approach to reform should be to open our minds and diversify our ideas and our thinking. There are many wrong ideas in high places (both in public and private sectors). I am not sure we are subjecting our ideas and thinking to as much examination and scrutiny
as they deserve for purposes of policy formulation.
A few examples will do. First: Tourism as a possible foreign exchange earner. We need both local and foreign tourists. Before the foreigners come with their dollars and in preparation for their coming, we can do something about creating and sustaining domestic tourism. Tourism is not necessarily something that occurs in remote locations where there are waterfalls, monkeys, exotic scorpions and wild animals but no natives.
Tourists also like to interact with ordinary non-419 Nigerians of which there are still many.
Second: Appropriate pricing for Garri. Seriously speaking, when we consider the effort involved in growing cassava, manufacturing Garri, and making the fine ‘egusi’ ‘ewedu’ ‘mea and kuka’ or other soup to go with
Garri, it should be clear that if the efforts were correctly priced, Garri should be food fit only for kings. It could certainly not be for the poor.
Otherwise known as ‘Cassava flakes’, Garri is one of the main sources of carbohydrates and a popular staple food in Nigeria. This local delicacy is eaten in every part of Nigeria and in other countries. Studies have shown
that although Garri is a starchy food, it is low in calories with high fibre contents that will help one stay full for a longer period of time. Garri also eases digestion by helping to absorb toxins that go into the intestines. This
essential food item equally aides the cure of diarrhea when mixed with water.
That is not all, scientist say the Vitamin ‘A’ in Garri can help to improve the health of the eyes, prevent blindness, reduce body temperature as well as serve as energy booster.
Therefore, considering the huge benefits of this staple food, its appropriate pricing should put more money in the hands of the farmers and processors while producing more cassava for the export markets, to earn scarce
foreign exchange.
Third: Renewable energy and locally abundant resources. Rather than kill ourselves over oil money, we can think of renewable sources of energy, such as solar power and wind energy for power distribution. Not long ago,
India embarked on wind power development. Today, she is an important participant in the field. In the area of solar energy we live in a belt of nearly 98% solar radiation day and night. There is good potential for the use of
solar power for security lightings etc. this will decrease the load on power plants and free some capacity for industrial consumers.
In a related development, our Malaysian brothers now use rubber wood for timber and make export grade furniture there from. Come to think of it, these were the same set of people that came to Nigeria some years ago
and collected palm fruits for planting in their country. Malaysia is also researching on how to make plastic and diesel from the palm oils.
And for houses, no one can beat the Chinese in the use of locally available earth, sands and abundant limestone to build. Can you image the quantum of opportunities that can be opened up in Nigeria if we are to diversify our
economy as these other nations did by using abundant natural resources?.