Addressing Nigeria’s rising food insecurity

Nigeria is currently facing a pressing issue of rising food insecurity, with approximately 8% of Nigerians being food insecure, according to the International Monetary Fund. In response to this crisis, the government has announced plans to distribute 42,000 metric tons of grains across all 36 states. To delve deeper into the options available to address this food crisis, Akinkunmi Akintunde, CEO of Afex Nigeria, shared insights during an interview with CNBC Africa. The discussion centered around key factors such as subsidizing fertilizer, tackling post-harvest losses, improving pricing mechanisms, and attracting private capital into the agricultural sector. Akintunde emphasized the importance of addressing post-harvest losses, particularly during the wet season, as a crucial aspect of enhancing food security in the country. He highlighted the need for more structured pricing mechanisms to attract financing and drive agricultural productivity. While acknowledging the role of subsidies in supporting farmers, Akintunde stressed the importance of efficient execution and the necessity of private investment to bridge the existing financing gap in the sector. He underscored the commercial viability of agriculture in Nigeria and the need to streamline the flow of capital to promote productivity and infrastructure development. Akintunde also emphasized the significance of adequate storage facilities, processing, and value addition to reduce post-harvest losses and enhance food security. Moreover, he discussed the global context of food pricing, noting that while international commodity prices may be falling, local prices in Nigeria are influenced by macroeconomic factors such as inflation and foreign exchange movements. This disparity in pricing dynamics underscores the country's integration into the international food system and the need for structural adjustments to achieve pricing parity over time. The interview concluded with a focus on Nigeria's potential in the cocoa market, as supply constraints in Ghana and Cote d'Ivoire have led to record-high cocoa prices globally. Despite ambitious targets for cocoa production in Nigeria, the feasibility of reaching these goals remains a subject for future discussions. Overall, the conversation shed light on the multifaceted strategies required to tackle Nigeria's food insecurity, ranging from addressing post-harvest losses and pricing mechanisms to leveraging global market opportunities in key agricultural sectors.