Despite Rising Inflation, Buhari Says Food Prices Dropping

Despite the high food inflation of 18.3 per cent which is the highest in over 30 months, President Muhammadu Buhari on Friday said that the reforms being implemented by his administration have led to reduction in food prices.

The President said this in his New Year Broadcast to Nigerians aired on the Nigerian Television Authority.

Nigeria’s food inflation index according to the National Bureau of Statistics had risen to 18.30 per cent in November from the 17.38 per cent recorded in October last year.

Nigeria’s food inflation has risen by over 110.5 per cent in 5 years, between September 2015 and November 2020.

A comparison of the Composite Food Index within the period under review indicated that food inflation rose from 181.8 index points to 382.7 index points.

This means that the price of food items has not only increased, but more than doubled in the last five years of the Buhari’s administration

The country’s inflation index has been largely influenced by the closure of land borders since 2019.

The NBS said the rise was accelerated by increases in prices of bread and cereals, potatoes, yam and other tubers. Also rise in the prices of meat, fish, fruits, vegetables and oils and fats drove the food index.

But Buhari said that the diversification programme being implemented by his goverment particularly in the agricultural sector is bringing down inflationary pressures.

He said, “Our focus is on revamping the economy through the national economic diversification agenda that supports the primary goal of national food self-sufficiency.

“This has helped reduce the growing food related inflationary figures and have in considerable measure positively impacted our food security status during the long months of the pandemic lock down.

“We are also currently rebuilding our national infrastructure base and, in the process, introducing transformation through the rehabilitation, modernization, and expansion of the railway system, national roads and bridges both in rural and urban centres, alongside the airports and seaports.”

He said the reforms being put in place in the power sector would guarantee increased efficiency in the government’s drive to significantly expand the generation and distribution of electricity for use in homes and factories.

In the area of job creation, the President said his administration is currently undertaking a series of special interventions designed to boost job creation and support the entrepreneurial drive of our youths.

He added, “With the recent opening of our borders, we expect that the pent-up demand of legitimate cross-border and international trade will boost the fortunes of the many small businesses and agricultural enterprises that depend on Nigeria’s trade and commerce.

“The message to our West African neighbours is that Nigeria is once again fully open for those willing to conduct business in a fair and equitable way.”