Commerce Chamber Raises Concern Over Incessant Increase In Foodstuffs Prices

The Abuja Chamber of Commerce and Industry (ACCI) expresses deep concern over the persistent rise in commodity prices, which is adversely affecting small-scale business owners and escalating poverty levels in the country.

The surge in prices of essential food items such as rice, beans, cassava flour, tomatoes, pepper, onions, and others has aggravated the plight of the average citizen, rendering basic meals increasingly unaffordable for many households.

Official records from the National Bureau of Statistics (NBS) indicate a staggering 35.41 per cent food inflation rate in May 2024. However, on-ground observations suggest that the true food inflation rate exceeds 50 percent, highlighting the severity of the situation and its dire impact on livelihoods.

Experts attribute this economic hardship to the drastic depreciation of the national currency, the naira, which has significantly eroded citizens’ purchasing power. The resulting exchange rate volatility has disrupted businesses, increased production costs, and thwarted projections for economic growth.

The chief executive officer of Araba Technology, Ambassador Segun Olugbile urged the ACCI to initiate business actions against food crisis and hunger in the FCT adding that the food crisis is becoming a serious issue due to multifaceted challenges affecting farmers, herders and climate change, and the current high inflation.

He said the ACCI stands at a critical juncture as the Federal Capital Territory faces an escalating food crisis and hunger emergency due to challenges impacting food production and supply chains. With an estimated 24.7 million individuals affected by food and nutrition insecurity across 26 states, including the FCT, urgent action is imperative.

Ambassador Olugbile emphasised the pivotal role that ACCI can play in collaboration with government and stakeholders to avert a worsening crisis and bolster food security in the region.
The President of ACCI, Chief Obegolu, SAN, PhD in his reaction stated that the ACCI provides support services in the area of training and advocacy to help local businesses navigate challenges and seize opportunities in the food sector to impact its members.

This distressing situation has made necessities such as food, housing, and healthcare increasingly unattainable, pushing numerous households to the brink of poverty and extreme deprivation.

According to the Nigeria Bureau of Statistics (NBS) 2023 report, the country already had 133 million people living in multidimensional poverty before the recent economic challenges. There are growing concerns that this number has swelled over the past eight months, exacerbating the socio-economic landscape.

In the past, staple foods like cassava flour (garri) and beans served as affordable options for the common man. However, the current scenario paints a starkly different picture, with prices skyrocketing beyond the reach of the average citizen. For instance, a measure of beans in the Federal Capital Territory and its environs now costs between N2000 to N2500, while garri is priced between N1200 to N2000. The affordability of rice, a widely consumed staple, has also been severely compromised.

Chief Emeka Obegolu, the leader of the Organised Private Sector in the FCT and environs emphasised the urgent need for government intervention to address the escalating food crisis warning that failure to act promptly could lead to a state of malnutrition and further aggravate the nation’s socio-economic challenges.

“Food is a fundamental necessity of life, and its affordability directly impacts the well-being of citizens. The escalating food inflation crisis poses severe threats to food security and exacerbates poverty levels. The government must take decisive action to mitigate this crisis and alleviate the suffering of the populace,” stated Chief Obegolu

He further highlighted the adverse effects on the business community, particularly farmers and agricultural product sellers, who are grappling with disrupted operations due to the prevailing economic conditions.

ACCI calls for urgent measures to stabilise food prices, enhance food security, and alleviate the economic burden on Nigerians, thereby fostering sustainable socio-economic development within the country.