Price hike making food unaffordable, Abuja chamber of commerce laments

The persistent hike in food prices is currently worsening poverty levels across the country, the Abuja Chamber of Commerce and Industry declared on Saturday.

ACCI’s President, Emeka Obegolu, SAN, said the situation is also affecting small-scale businesses adversely, adding that basic meals are becoming unaffordable to most citizens nationwide.

“The Abuja Chamber of Commerce and Industry 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,” he said in a statement issued in Abuja.

The chamber’s president said official records from the National Bureau of Statistics indicate a staggering 35.41 per cent food inflation rate in May 2023.

“However, on-ground observations suggest that the true food inflation rate exceeds 50 per cent, 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,” Obegolu stated.

The chamber stated that the Chief Executive Officer, Araba Technology, Segun Olugbile, had urged the ACCI to initiate business actions against the food crisis and hunger in the Federal Capital Territory.

Olugbile, according to ACCI, said 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, the expert explained.

Olugbile emphasised the pivotal role that ACCI could play in collaboration with government and stakeholders to avert a worsening crisis and bolster food security in the region.

Reacting to this, Obegolu said 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.

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

The NBS in one of its reports in 2023, stated that Nigeria already had 133 million people living in multidimensional poverty before the recent economic challenges. However, there are growing concerns that this number has swelled over the past eight months.

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.

A measure of beans in the Federal Capital Territory and its environs, for instance, now costs between N2,000 to N2,500, while garri is priced between N1,200 to N2,000. The affordability of rice, a widely consumed staple, has also been severely hit by inflation.

Obegolu 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 threat to food security and exacerbates poverty levels. The government must take decisive action to mitigate this crisis and alleviate the suffering of the populace,” he said.

The ACCI president 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,” Obegolu stated.