Rising Food Prices: Buhari Blames ‘Exploitative Behaviour’ Of Traders, Middlemen

President Muhamamdu Buhari has expressed worry over the rise in food prices which he blamed on the activities of “exploitative” traders and middlemen.

Buhari said it was disturbing that the prices of food were skyrocketing at a time when the economy was “already mired in a slowdown occasioned by the global coronavirus situation.”

The president, however, said his administration was already strategizing on ways to address the problem.

Buhari’s anxiety was expressed in a statement issued by his senior media assistant, Garba Shehu, on Wednesday.

“This year has indeed tested us in ways that globalisation has never been tested since the turn of the century. These challenges have disrupted lives and supply chains all over the world, and Nigeria has not been spared.

“The effect has been deeply felt in the delays encountered in procurement of raw materials for local production of fertilizer (damaging standing crops before harvest) and the speculative activities by a number of rice processors who are ready to pay for paddy at any price to keep their mills running non-stop.

“But of all these problems, the most worrisome are the activities of “corrupt” middlemen (with many of them discovered to be foreigners) and other food traders who serve as the link between farmers and consumers found to be systematically creating an artificial scarcity so that they can sell at higher prices,” said the statement.

Shehu noted that President Buhari’s government had, “avoided imposing stockholding restrictions, in order not to discourage investments in modern warehousing and cold storage.”

He said, “The president has just approved the release of food items from the strategic reserves, including 30,000 tons of maize to animal feeds producers to ease the high cost of poultry production,” adding that the government had, “raised some of these issues with the various food producer associations involved, particularly those of rice and other grains.”

The president expressed confidence that food prices would soon crash with the cooperation of the food producers.

“In addition, investments in the agro-allied sector by the private sector will significantly increase domestic production of farming inputs especially fertilizer, further crash prices, create employment and ease the pressure on our foreign reserves.

“One of these major investments is the Dangote Fertilizer plant which is projected to come on stream by the 4th quarter of 2020.

“Additionally, key government agencies and policymakers with the responsibility and visibility on market activities remain focused on removing structural impediments to the production and free movement of agricultural products.

“President Buhari once again assures Nigerians of his dedication to bringing this issue to a swift end.

“Nigerians have already suffered grave economic losses owing to the coronavirus pandemic, and the Buhari administration will do all in its power to ensure that our people do not continue to suffer additionally from high food prices,” said Shehu.

THE WHISTLER recalls that President Buhari had in August, 2019, ordered the closure of Nigeria’s land borders so as to boost domestic production of rice.

The high cost of rice had been attributed to the challenge by farmers to meet demand as many were still harvesting by hand.