By Lawal Mamman
Nigeria is an agrarian country with over 70 million hectares of agricultural land area and 44% of it under cultivation. The Nigerian agricultural sector absorbs over 70% of the country’s population, contributing to food security and economic growth of the nation.
Despite its arability of land, Nigeria still struggles to feed its teeming population as millions of Nigerians suffer food crisis and recently, this struggle is multiplied by increasing food prices making it beyond the reach of common Nigerians.
Cost of Input, Transportation and Hoarding Gombe
In Gombe community members, farmers and marketers acknowledged the role of middlemen in imposing unnecessary prices on agricultural goods but the in last couple of months, hoarding of products, government policies have played a more significant role in increasing inputs, and cost of transportation.
Aliyu Abubakar Bature, a distributor, who purchases produce like rice, maize, and other grains at farm point and sells at Tudun Hatsin Gombe said, “High cost of food prices in Gombe are attributed to a lot of factors. First, high cost of input, especially fertilizer which must be translated into price in order for them to produce more subsequently tops the list. It goes for about N40,000, a product we got for less N10,000 before now.
“There is also an issue with the price of petrol and transportation of goods and services during production and cultural practices, and final movement to market; this makes transportation an integral part of farming. Looking at these key components, it makes selling outputs cheap impossible because farmers will record nothing but loses,”
The situation is exacerbated by other factors, notably hoarding, which makes life a grinding struggle for residents in the state. This is largely perpetuated by unscrupulous businesses seeking to make substantial gain at the expense of the vulnerable poor, who are merely trying to survive one day at a time.
Compounding this issue is the obstinacy of farmers who continue to insist on cash payments for their produce, despite Nigeria’s efforts to transition to a cashless economy with reduced money circulation.
“The rich businessmen are also serious problem, they buy and hide agricultural products from farmers in rural communities who still control a large portion of our farming, store them and only make available when there is scarcity, and it is common knowledge that with scarcity comes higher prices.
“The issue of cashless policy is still causing trouble and is a strong factor when you talk about why prices of food are on the high side. When going to purchase produce from farmers, many of them will never agree to accept any electronic transfer. They only understand the language of cash or money at hand, so this also limits availability of products, making prices higher.” Haruna Mu’azu states.
Aliyu admitted uncertainty of middlemen in this situation especially looking at the economy. He said, “I cannot specifically say anything in regards to middlemen, they use to be a serious problem because they add unnecessary amounts, as much as 5,000 naira, to whatever produce they buy at farm point or in our rural communities. Whoever they were buying for will not know therefore make their calculations based upon whatever these middlemen say. Middlemen can easily be blamed but removal of fuel and other new policies by government have changed everything.
“Prices of some crops like rice ranges from N130,000 to N140,000 as at last week but now it is hovering between N150,000 in some places is N170,000; New maize some weeks ago sell for N50,000 but the current price is N60,000 and millet rose for N40,000 to N60,000 just within two weeks. This tells you there is uncertainty everywhere,” he said.
Others stakeholder within the agricultural value chain have attributed the continuous increase in food prices to government policies because hoarding and illegal activities of middlemen have been there for years but Nigerians never really felt the impact.
Yahya Salisu Musa a fertilizer dealer when interviewed by this reporter had this to say, “Of course the government is at fault because if they want food item prices to crash, they know policies to implement in achieving that. Food prices are too high as a result of fertilizer and petrol prices. Let take a look at fertiliser prices and see: Indorama: costs between N36,000 to N37,000; Notore: N42,000 and N43,000 NPK: N45,000 and N46,000; we sell Freedom which is the cheapest for N26,000.
An anonymous farmer mentioned that from land preparation to harvest on a land of 2.5 hectares, labour, transportation and miscellaneous will cost at least N1.8 million. These costs do not favour selling at lower prices citing fuel price and dollar rate as culprits.
This farmer also re-echoed that, “Cashless policy of 2022 which spilled into early months of 2023 is also a factor. There is a system ongoing with not enough money at hand and farmers do not accept transfer, this also results in unwarranted scarcity, limited supply and high prices on those items in the market. The food crisis can be solved with proper control of petrol price which affects every other thing in the nation.”
In Gombe, there is a cabal which include capitalist and government officials who prefer procuring large portion of food produced in the state and export to neighbouring states for profiteering. The anonymous source said, “Food cost in Gombe state is particularly resulting from the fact that almost 80% of foods produced are exported out to neighbouring states, Gombe is only left with 20% leaving indigenes with a few that are sold exorbitantly. Also the rich including our sitting governor is a part of the export cable.
“With little food items in the state, and their wealth, they possess the ability to import from other parts of the world and as you know it, such business is very lucrative. As I speak to you, we know their storage stores or facilities. This practice encourages high prices of food in the state.”
Kano Encounters Greed of Middlemen and Insatiable Businessmen
The story in Kano mirrors that of Gombe, where middlemen and company agents swoop into rural communities, snapping up products to sell at their own convenience not necessarily minding plight of common men.
Sani Usman who used to be an agent for a company that purchases rice from farmers shared his experience. He narrates, “I was an agent before deciding to abandon that line of business. Tycoons and companies like the one I worked will give some amount of money and it is up to you bring in products (rice) for them. Though I was paid, in the field, I still add about N500 to each bag of rice in a trailer that loads about 300 bags, leaving me with a profit of over 150,000 naira. When you finally take this to your bosses, they also add theirs factoring in the cost of transport and other miscellaneous.
“I can boldly tell you that even without the middlemen factor, companies hike price unjustly. Example, currently, rice goes for N59,000 or N60,000 depending accessibility and proximity to the market but what may surprise you is that is gotten for N55,000 indicating a profit of N3,000 or N4,000 per bag after removing transport and other cost incurred before getting to final consumers. The 3,000 naira may sound little but when you look at the amount of produce let’s say 100 metric tonnes, you arrive at hundreds of millions of naira,” he concludes.
Exploitation of poor farmers another reason why the masses in Kano State purchase food items at high prices even when they are produced locally.
Muhammad Ja’afar from Dambatta Local Government Area had this to say, “Majority of the people involved in agriculture are poor so, those who are well to exploits this opportunity. When it is almost growing season, they approach these farmers and throw money or inputs like fertilizer they do not have the ability to purchase.
“The agreement will be that 80% or more, depending on circumstance of the farmer, of whatever is produced belongs to them. After during harvest they monitor the process closely and come with trucks to move the crops out of the village. With this, they are able to control the price.”
MINNA
In the ‘Power State’ – Niger the tale of skyrocketing food prices does not differ much from those in Gombe and Kano as cost of production, transportation of not only finished products but also input, lack of proper implementation of well though policies and greed are identified as factors responsible.
“Cost of production is on a different level these days. Tractors that are used in farming operations like tillage, harrowing and ridging run on diesel, this petroleum product cost over N1,200. Transportation of labour and seeds from market to farm especially when they are not sourced locally is another thing to contend with, I do not need to tell you how much petrol is sold.
“Now this is when you talk about local production. In terms of import the narration does not differ. People who import essential food items like maize, rice, and cowpea previously spend at least 21 million naira to clear goods from ports but presently, it is around 42 million naira or more depending on what you are importing and where you are importing from, my friend who is into that says he is not bothered because he will easily transfer the additional cost to final consumers,” are the words of Ahmed Abdullahi a farmer from Bida Local Government Area.
He wished Nigeria’s brilliant agricultural policies will be religiously implemented in other to harness full potential to achieve the much desired food security.
“When you hear Nigerians are smart, it very correct, we just need the right set of people to take us to the promise land. Look at our policies in the agric sector since the military rule when we had Operation Feed the Nation in 1976. That singular act resulted in the integration of Nigeria into the world economy.
“The economy was driven by the production of cash crops such as palm oil, cocoa and groundnut but what happened to it? It never achieved what it was designed to. Take a look at other policies and you will understand what I mean, we need to start implementing our policies in other to feed ourselves and solve the problem of hunger and malnutrition,” Muhammad Idris a graduate of crop science from Usmanu Danfodiyo University who grows rice and yam in Minna opined.
In Niger state, those are not the only factor. The sorry state of the nation’s security also took a chunk of the blame. Abdullahi Umar said “Hike in petroleum products, increased prices of farming materials like fertilizers, herbicides, and pesticides, and the high cost of hiring manpower all responsible for the high soaring cost of food items. Most important is insecurity in parts of the state which affects farmers who rely on farming as their primary occupation.”
