{"id":117057,"date":"2025-04-03T15:49:48","date_gmt":"2025-04-03T14:49:48","guid":{"rendered":"https:\/\/pointblanknews.com\/pbn\/?p=117057"},"modified":"2025-04-03T15:50:41","modified_gmt":"2025-04-03T14:50:41","slug":"hunger-food-inflation-persist-despite-nigerias-3-3bn-agric-loan","status":"publish","type":"post","link":"https:\/\/pointblanknews.com\/pbn\/news\/hunger-food-inflation-persist-despite-nigerias-3-3bn-agric-loan\/","title":{"rendered":"Hunger, Food Inflation Persist Despite Nigeria\u2019s $3.3bn Agric Loan"},"content":{"rendered":"<div style=\"text-align: justify;\">By Daniel Adaji<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">Despite securing loans and investments worth billions of dollars to boost Nigeria\u2019s agricultural sector, food prices continue to soar, fueling hunger for millions of citizens.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">A report from the National Bureau of Statistics reveals that the country\u2019s food inflation has skyrocketed by over 60.88 per cent, leaving citizens struggling to afford basic food staples. This comes amid promises of agricultural reforms and financial interventions by the government.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">Recall that in May 2023, President Bola Tinubu&#8217;s administration promised to prioritize food security and pledged to cultivate 500,000 hectares of farmland across Nigeria to combat the worsening hunger crisis.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">The government also secured a $3.334bn (N5.178tn) loan from the World Bank and African Development Bank to enhance agricultural productivity and support rural farmers. These efforts were aimed at reducing food prices and ensuring food availability.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">\u201cI am well aware that for some time now, the conversations and debates have centred on the rising cost of living, high inflation, which is now above 28 per cent, and the unacceptable high under-employment rate. To ensure constant food supply, security, and affordability, we will step up our plan to cultivate 500,000 hectares of farmlands across the country to grow maize, rice, wheat, millet, and other staple crops,\u201d President Tinubu said during his new year address.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">However, despite these efforts, food prices have continued to rise, largely due to multiple factors, including the removal of fuel subsidies, the devaluation of the naira, and insecurity.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">In November 2024, food inflation hit 40 per cent and slightly lowered to 37.03 per cent in December, then 36.09 and 34.74 per cent in January and February of 2025, respectively, nearly double the level recorded in May 2023, when it was 24.82 per cent. The surge has affected millions, as Nigerians are forced to spend more to buy essential food items.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">The challenges are compounded by rising fuel costs, which have caused an increase in transportation fees, further driving up the cost of food.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">Experts point out that while loans from international financial institutions have been secured, these funds have yet to produce the intended effects on the ground.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">Data from the United Nations Food and Agriculture Organization reveals the extent of Nigeria&#8217;s hunger crisis. Over 33 million Nigerians are expected to face food insecurity in 2025, about 7 million increase from 2024.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">Despite the billions invested in agriculture, Nigeria&#8217;s food security remains precarious.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">Agricultural analysts express scepticism about the effectiveness of the loans and government interventions.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">Associate Professor Unekwuojo Onuche from the University of Africa, Bayelsa State,\u00a0 noted that while increasing food production is key to lowering prices, structural challenges persist.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">\u201cYou increase supply so that supply increases and demand remains fairly stable. Prices will be forced to come down,\u201d Onuche said.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">However, he also acknowledged the time lag between investment and results in the agricultural sector, which could take several months to manifest.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">Onuche further warned that rising fuel prices could offset any benefits from increased agricultural production.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">\u201cIf you are giving farmers money to expand their businesses and you are increasing the cost of production, increasing the prices of oil, and that price is touching on every other thing, I don\u2019t think you can succeed in keeping the prices of farm outputs down by simply increasing it,\u201d he said.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">The situation is worsened by issues in the supply chain. Tobi Awolope, an agricultural economist at the University of Agriculture, Abeokuta, pointed out that targeted smallholder farmers often miss out on the benefits of government interventions due to poor implementation.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">\u201cVarious interventions have failed because the targeted small-holder farmers are not reached. Moreover, issues around supply chain and logistics resulting from the hike in fuel price is another main reason why interventions have zero or marginal effect on food prices,\u201d Awolope said.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">She also stressed the need for greater transparency in the allocation of interventions, suggesting that the government should focus on reducing fuel prices to ease the mobility of food.<\/div>\n<div style=\"text-align: justify;\"><\/div>\n<div style=\"text-align: justify;\">\u201cThere should be full transparency in allocating and selecting beneficiaries for interventions, ensuring that farmers who are the main players in the agri-food system are reached and not just anybody,\u201d Awolope stressed.<\/div>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content --><!-- AddThis Related Posts generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>By Daniel Adaji Despite securing loans and investments worth billions of dollars to boost Nigeria\u2019s agricultural sector, food prices continue to soar, fueling hunger for millions of citizens. A report&hellip;<!-- AddThis Advanced Settings generic via filter on wp_trim_excerpt --><!-- AddThis Share Buttons generic via filter on wp_trim_excerpt --><!-- AddThis Related Posts generic via filter on wp_trim_excerpt --><\/p>\n","protected":false},"author":1,"featured_media":117058,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[5],"tags":[],"class_list":["post-117057","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Hunger, Food Inflation Persist Despite Nigeria\u2019s $3.3bn Agric Loan - Pointblank News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/pointblanknews.com\/pbn\/news\/hunger-food-inflation-persist-despite-nigerias-3-3bn-agric-loan\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Hunger, Food Inflation Persist Despite Nigeria\u2019s $3.3bn Agric Loan - Pointblank News\" \/>\n<meta property=\"og:description\" content=\"By Daniel Adaji Despite securing loans and investments worth billions of dollars to boost Nigeria\u2019s agricultural sector, food prices continue to soar, fueling hunger for millions of citizens. 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