In a bid to combat the persistent rise in food prices and ensure food security, Nigeria’s Federal Government has unveiled plans to establish a National Commodity Board.
Vice President Kashim Shettima announced this initiative during the opening of a two-day high-level strategic meeting on climate change, food systems, and resource mobilization in Abuja.
The National Commodity Board will be tasked with assessing and regulating food prices while maintaining strategic reserves of essential grains and other food items to stabilize prices. Shettima emphasized the urgency of addressing food insecurity, citing it as one of the priorities of President Bola Tinubu’s administration.
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“Our solution to the potential food crisis has become immediate, medium, and long-term strategies,” Vice President Shettima stated. He outlined short-term measures such as distributing fertilizers and grains to farmers, enhancing irrigation for year-round food production, and establishing the National Commodity Board to address price volatility.
“Our solution to the potential food crisis has become immediate, medium, and long-term strategies. The short-term strategy entails revitalizing food supply through specific interventions like the distribution of fertilizers and grains to farmers and households to counteract the effects of subsidy removal; fostering collaboration between the Ministry of Agriculture and the Ministry of Water Resources for efficient farmland irrigation, ensuring year-round food production, and addressing price volatility by establishing a National Commodity Board.
“This board will continually assess and regulate food prices, maintaining a strategic food reserve for stabilizing prices of crucial grains and other food items,” he said.
The Vice President assured that while the Tinubu administration is fully invested in the restoration of degraded land, there are ongoing plans “to restore four million hectares, or nearly 10 million acres, of degraded lands within” the nation’s borders as its contribution to the AFR100 Initiative.
The initiative aims not only to stabilize prices but also to address security challenges that have hindered farming activities. Shettima assured that efforts would be made to protect farmers and activate land banks to increase arable land for farming, ultimately boosting food output.
Furthermore, the administration is collaborating with mechanization companies to clear forests for farming and ensuring financial support through the Central Bank of Nigeria to fund the agricultural value chain. Shettima highlighted the administration’s commitment to improving Nigeria’s Human Capital Index by ensuring food availability and affordability.
Acknowledging the role of agriculture in job creation, Vice President Shettima reiterated the government’s focus on making agriculture attractive to the youth. The aim is to create millions of jobs within the agriculture value chain, aligning with global development agendas such as the UN-Agenda 2030 on Sustainable Development Goals and the African Union Agenda 2063.
The announcement of the National Commodity Board received commendations from stakeholders present at the event. Mrs. Gloria Akobundu, the National Coordinator of NEPAD, praised President Tinubu’s efforts towards national development and emphasized the importance of supporting smallholder farmers to address food shortages.
Dr. Ibrahim Maiyaki, the AU Chairman of Food System, emphasized the need for Africa to leverage its demographic dividend by enhancing productivity and economic growth through effective governance and regional integration in food transformation.
Weighing the implications
The establishment of a National Commodity Board marks a significant step by the Nigerian government to address food inflation and ensure food security. By regulating food prices and maintaining strategic reserves, the board aims to stabilize prices and mitigate the impact of market fluctuations on consumers and farmers.
However, the success of this initiative hinges on effective implementation and coordination among various stakeholders. The government must ensure transparency, accountability, and efficiency in the operations of the National Commodity Board to instill confidence in the market and avoid potential pitfalls such as corruption and mismanagement.
Moreover, while price regulation may provide short-term relief for consumers, it could have unintended consequences on market dynamics and investment incentives in the long run. Excessive regulation may discourage private sector participation and innovation in the agricultural sector, limiting productivity gains and hindering overall economic growth.
Additionally, the government’s efforts to address security challenges affecting farming activities are crucial for unlocking the full potential of the agricultural sector. Ensuring a safe and conducive environment for farmers is essential for increasing food production and promoting rural livelihoods.
Furthermore, the focus on youth engagement and job creation in agriculture aligns with broader development objectives but requires sustained investment in education, skills training, and infrastructure to harness the demographic dividend effectively.
Overall, while the establishment of a National Commodity Board represents a proactive measure to address food inflation, its success will depend on a holistic approach that integrates regulatory measures with broader policies aimed at enhancing productivity, resilience, and inclusivity in the agricultural sector.