AFEX seeks coordinated action to address food production, price hike crisis

AFEX has called for increased coordinated action between private industry stakeholders and the government to address Nigeria’s pressing food production, prices and security challenges in Nigeria.

The Group Chief Executive Officer of AFEX, Ayodeji Balogun, said this is to stabilise prices, boost local production, and position the country as a leading agricultural exporter in West and Central Africa.

This call was made at the AFEX Chief Executive Officer (CEO) Breakfast, Domestic Markets Edition, titled: “The Convergence of Commodities and Capital Markets: Creating Infrastructure and Finance Solutions for Food Supply,” held in Lagos yesterday.

Balogun emphasised the critical need to address the growing concerns over food insecurity and escalating prices in the country.

Assessing both global and local market trends and their implications for Nigeria’s agricultural sector, Balogun provided an in-depth overview of the current market landscape, highlighting the volatility driven by global events such as the Russia-Ukraine war and domestic factors, including Nigeria’s economic policies.

He explained that these variables have significantly impacted food prices and the availability of key agricultural inputs like fertilizer.

“We must examine the pressing needs in agricultural production and forecast commodity trends for the coming months. This conversation is about aligning efforts to ensure that Nigeria is not just food-secure but also has enough supply for both domestic consumption and industrial raw materials,” Balogun stated.

In his presentation, Balogun acknowledged the success of government initiatives in curbing inflation but noted that food prices remain high.

Balogun further explained that the current gap in food production, driven by both domestic underproduction and regional demand, is a key factor behind the rising prices.

“Inflation is slowing down, but prices are still elevated. We need to continue stemming inflation and then focus on bringing food prices to a more reasonable level. The ultimate goal is to ensure that every Nigerian can afford three square meals a day,” he stated.

According to him, Nigeria’s food production is only growing at one per cent, while the population grows at three percent, stressing the need to significantly increase agricultural output, drawing parallels with Brazil’s agricultural dominance in Europe.

He stated that Nigeria has the potential to become the agricultural powerhouse of West Africa, feeding 400 to 500 million people.

The AFEX CEO said for this to happen, the country needed to drastically increase its production from the current 40 million metric tonnes to 100 million metric tonnes yearly.