Nigerians seek Fed Govt’s intervention over rising food, cooking gas prices

Published 18 Oct,2021 via The Nation - Nigerians have sought Federal Government’s intervention in the increasing cost of food items and cooking gas.

They said government should stem the rising cost of the items through proper economic recovery plan and implementation.

The respondents noted that Nigerians need to assist government in minimising the excesses of middlemen and market associations in hiking the prices of commodities.

Residents of the Southsouth, in particular, identified the major factors contributing to cooking gas price hike to include lack of functional refineries and off-takers for gas distribution.

On prices of food items, they identified market forces, insecurity, farmer/headers clashes, insurgency, banditry, poor storage facilities and COVID-19 outbreak as causes of food price hike in the country.

Although the analysts expressed appreciation for the current government’s efforts at solving the problem, they advised that the intervention should be urgent as food is one of the basic necessities of life.

A civil servant in Asaba, the Delta State capital, Mr. Vincent Adeoye, said: “Our challenge has become double in the sense that the cost of food items is high, likewise that of cooking gas.”

Also, Mrs. Deborah Diai, a civil servant, said she had resorted to using charcoal for cooking since “the price of domestic gas is now within the reach of the rich”.

The Chairman of Ika Liquified Petroleum Gas Dealers Association, Mr. Onyeka Eze, said a kilogramme of gas sold for between N300 and N320 had gone up to N650.

In Rivers State, Mr. Livingston Wechie, a civil rights crusader, urged the government to tackle the situation.

President of Etche Farmers’ Cooperative Union, Mr. Godwin Akandu, urged government to reinvigorate the economy by ensuring direct funding of farmers and strengthening security.

Also, a Liquified Petroleum Gas (LPG) mini-tank farm operator, Mr. Sunil Umar, attributed the current hike in prices of cooking gas to lack of functional refineries.

Operations Controller of the Department Petroleum Resources (DPR) in Uyo, the Akwa Ibom State capital, Mr. Victor Ohwodiasa, attributed the increase to deregulation of the sector and market forces.

A housewife in Uyo, Mrs. Glory Inyang, said the high cost of cooking gas had affected the feeding allowance given to her by her husband.

Another housewife, Mrs. Margaret Joseph, regretted that both the cooking gas and food items had become exorbitant at the same time, causing lot a lot of hardship to Nigerians.

The Edo State Chairman of the Grassroots Farmers Association of Niger Delta, Chief Emmanuel Odigie, identified insecurity, activities of market associations and bad roads as reasons for high cost of foodstuffs.

Agricultural Extension Officer at the Nigerian Stored Products Research Institute (NSPRI) in Sapele, Delta State, Dr. Samuel Agoda, attributed the hike in prices of food to post harvest losses experienced by farmers.

Also, some residents in the Northeast have decried the soaring prices of food items and LPG in the region.

The News Agency of Nigeria (NAN) reports that prices of food items and LPG otherwise called cooking gas have shot up by 30 per cent in the past few weeks in markets across the region.

A NAN survey in Adamawa, Bauchi, Borno, Dutse and Gombe states showed that prices of grain, such as rice, maize and beans, indicated galloping increase, a trend which exposed residents to hardship while most families resorted to firewood and charcoal due to exorbitant gas prices.

A check at Yola (Adamawa) and Wunti Market in Bauchi, showed that a 100 kilogramme bag of local variety rice was sold at N47,500; maize N22,000, beans N41,500 wheat N35,500, as against its old prices of N32,500; N18,000, N35,500 and 26,500, respectively.

A five litre gallon of vegetable oil was selling at N6,000 as against its old price of N4,500, while the same quantity of palm oil sold for N5,000 as against N3,000.

Beef also indicated similar increase in prices as one kilogramme sold for N2,500 as against its old price of N1,500.

Similarly, checks at various LPG sale outlets showed the product was selling at different prices ranging between N600 and N650 per kg while 12 kg cylinder of the product costs N7,200 as against its previous prices of N350 and N4,200, respectively.

Some of the residents told NAN in separate interviews that the hikes were caused by the activities of middlemen and advocated price controls to regulate prices to protect consumers from exploitation.

Alhaji Musa Arab, a rice farmer in Gombe, blamed the hike in prices of food items to the activities of middlemen, dry spell and poor harvest occasioned by the climate change.

Arab identified activities of the middlemen as the major obstacle in the agricultural value chain, adding that a lot of panic buying was ongoing in farming communities in the region

“The middlemen wait for the farmers to cultivate their crops, they buy it and hoard. They are now buying grains massively.

“Middlemen are the richest persons in the agriculture value chain, government should re-introduce marketing board else they would continue to inflict pains on Nigerians.’’

Abubakar Sadiq, a resident of Gombe, decried the high cost of food items, adding that the trend was making it difficult to most husbands to meet their household responsibilities.

Sadiq, a smallholder farmer, said that the cost of farming also resulted to the hike in grain prices, adding that fertilisers and chemicals were expensive.

More so, Alhaji Audu Sabo, Chairman, Maize Growers, Processors and Marketers Association of Nigeria (MGPMAN), Bauchi State chapter, attributed the hike in prices of grain to security challenges and effects of COVID-19 pandemic.

“The security challenge is affecting food production with negative consequence on prices, and also the negative impact of the COVID-19 pandemic on the global economy compounded the problem.

“Another problem is the structural imbalance in ensuring proper implementation of the agricultural interventions to mitigate the impact of the pandemic in the sector.

“This affected prices of food commodities in a bad way,” Sabo said.

Dr. Salihu Jahun, Agricultural Economist, College of Agriculture, Bauchi, who corroborated earlier opinion urged government at all levels to adopt proactive measures to ensure steady supply of food items to the markets.

“The hike in prices raised a major concern that calls for urgent regulatory measures to enhance food security.

“Government at all levels should create more enabling environment to encourage food production to meet the demand of the growing population,” he said.

Mr. Iliya Abarshi, Coordinator, Federal Ministry of Agriculture and Rural Development, (FMARD) in Bauchi State, said that the ministry had implemented various interventions to encourage food production.

Abarshi said that the ministry distributed inputs to smallholder farmers during the 2021 cropping season under its farmer support service scheme.

“The ministry is working to avoid losses at harvest so as to have a backup storage to avert food scarcity.” he said.

According to him, the Federal Government is providing loans and agricultural subsidy to assist farmers and encourage productivity.

On cooking gas, Alhaji Ibrahim Jada and Ishaq Adamu, some of the LPG dealers in Adamawa and Bauchi, attributed the hike in prices of the product to high Foreign Exchange, increased in the Value Added Tax (VAT) and 7.5 import charges.

They said LPG prices are pegged on depot prices, adding that about 90 per cent of the product were being imported into the country.

“Between 80 and 90 per cent of LNG products are imported into the country and the price is determine by FOREX.

“The situation drastically reduced patronage and the number of LPG consumers,” Jada said.

Adamu said that he spent about N12 million on procurement of LPG, adding that a one kilogramme of the product costs between n450 and N500.

However, Adamu Shitu, the Proprietor, Amana Gas Plant in Dutse, Jigawa, attributed the hike in gas prices to high cost of transportation.

Also, Iliyasu Abdullahi, the Operation Controller, Department of Petroleum Resources (DPR), Bauchi, attributed the high cost of the product to the removal of subsidy on petroleum products and the new VAT policy.

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