In his nationwide broadcast to mark Nigeria’s 61st Independence Day, President Muhammadu Buhari blamed some individuals and middlemen for the hike in food prices in the country.

“Unfortunately, as our food production capacity has increased, food prices have been going up due to artificial shortages created by middlemen who have been buying and hoarding these essential commodities for profiteering,” the president said.

THE CLAIM: That food prices are going up because some middlemen are hoarding essential commodities.

VERIFICATION

To verify the president’s claim, FIJ checked some factors that have contributed to food shortages in Nigeria based on available data.

BORDER CLOSURE

Although Buhari’s statement on increase in food production is true, his claim that middlemen are responsible for the hike in food prices cannot be substantiated.

In 2017 and 2018, Nigeria’s rice production rose from 3.7million metric tons to 4.0million. At the time, Nigeria needed to produce 6.7million metric tons of rice to meet up its citizens’ demands. According to the Food and Agriculture Organization (FAO), the deficit of about 3million metric tons of rice is either imported or smuggled into the country.

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However, in August 2019, the president ordered the closure of all land borders which affected all essential commodities, including rice, leading to food shortages.

THE INFLATION IN FOOD PRICES

Between June and August 2019, before the border closure, Nigerian’s food price inflation plummeted from 11.4% to 11.02%. But in September 2019, after the border closure, the inflation rose to 11.24%. This means that the border closure contributed to the inflation in food prices.

In December 2020, the Nigerian government ordered the reopening of the borders when the inflation rate was already at 19.56% — even though the government still placed a ban on the importation of rice, Nigerians’ most consumed food.

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According to Trading Economics, the continuous ban on the importation of rice rose the food prices inflation to 22.95% in March.

INSECURITY AND COVID-19 CRISIS
Nigeria is the 8th least peaceful country in the world, according to Global Peace Index.The lingering insecurity in the country has affected the production of food.

In Nigeria’s northwest states, farmers are attacked by bandits and insurgents. Bloomberg reported how insecurity was preventing farmers from producing food. Oyo farmers recently lamented how the incessant attacks by herdsmen were affecting their productivity. This has also led to an increase in food prices in the country.

A Datapyte survey recently revealed that the outbreak of Coronavirus and the subsequent lockdowns in Nigeria caused an average of 66.8% increase in the prices of food items. The measures taken to curtail the spread of the virus had effects on the country’s economy. The constraints also had a ripple effect on food production and transportation, leading to a hike in food prices and limiting the population’s access to nutritious food. 

CONCLUSION

Although there are isolated cases of certain individuals hoarding food items, there are no available statistics to prove this created food shortages in Nigeria. The government’s closure of land borders in 2019, insecurity, COVID-19, among other factors, contributed more to the artificial shortages that led to the hike in food prices.

VERDICT: The president’s claim that food prices have been going up due to shortages created by “middlemen hoarding food commodities” is misleading and unverifiable.