Market leaders blame food price hike on insecurity
The Federal Competition and Consumer Protection Commission (FCCPC) engaged with market leaders and traders in Lagos on Wednesday to investigate the persistent increase in food prices. This initiative aims to address widespread consumer concerns about escalating food costs.
FCCPC’s Investigative Mission
Ms. Suzie Onwuka, the head of the FCCPC’s Lagos office, explained the purpose of the meeting with representatives from Mile 12 Market and Oke-Odo Market in Ile-Epo. During a briefing with journalists, Onwuka emphasized the need to gather direct insights from market stakeholders to understand the underlying factors contributing to the rising food prices affecting consumers nationwide.
“The engagement is crucial for obtaining a clear picture of the issues driving the increase in food prices,” Onwuka stated. “Our mission prioritizes consumer protection and competition issues, particularly regarding the affordability of food commodities.”
Factors Contributing to Rising Prices
During the discussions, several key factors were identified as significant contributors to the soaring food prices:
1. Insecurity: The impact of insecurity on agricultural production was highlighted as a primary concern. Disruptions in farming activities due to threats from bandits have led to reduced agricultural output. This has forced many farmers from Northern regions to relocate to Internally Displaced Persons (IDP) camps, thereby affecting the supply chain.
2. Removal of Fuel Subsidy: The recent removal of the fuel subsidy has led to increased transportation costs, which subsequently raises the prices of food items. This has created a ripple effect across the supply chain, exacerbating the cost of goods for consumers.
3. Hoarding Practices: Onwuka pointed out that the practice of hoarding grains during dry seasons and releasing them during the rainy season for planting purposes has also contributed to price fluctuations and sustained high prices.
Collaboration for Solutions
Onwuka stressed the importance of collaboration among stakeholders to address these challenges and stabilize food prices. “We need to work together to find sustainable solutions that will benefit both the consumers and the market traders,” she urged.
Market Leaders’ Perspectives
Alhaji Shehu Usman, Chairman of the Mile 12 International Perishable Market Association, expressed his commitment to collaborating with the Lagos State Government to enhance food security through agricultural ventures. He highlighted efforts to secure land for farming activities, including tomato cultivation, to boost local production.
Addressing the inflationary trend, Usman denied any deliberate price manipulation within the market. “The spike in food prices is primarily due to disruptions in agricultural activities caused by insecurity,” he explained.
Alhaji Taofik Olorunkemi, the Baba-Oja of Oke-Odo Market in Ile-Epo, echoed Usman’s sentiments regarding the hike in food prices. He pointed out the challenges posed by high transportation costs and the continuous increase in prices with each new produce entering the market. Olorunkemi also emphasized the influence of the removal of oil subsidy on food prices.
Challenges of Modernization
Olorunkemi expressed concerns about the reluctance of the youth to pursue farming opportunities due to modernization. “The youth are moving away from farming, which is impacting our ability to maintain consistent food production levels,” he noted.
Government Intervention and Security Measures
Both market leaders commended the federal government for providing adequate security measures to safeguard farmers and agricultural operations. They emphasized the need for a secure environment to enable effective cultivation and production.
“Security is paramount for us to continue our farming activities without fear,” Usman stated. “The government’s efforts in this regard are commendable, but more needs to be done.”
Traders’ Perspectives
Market traders who spoke to the media expressed their empathy for the plight of Nigerians facing high food prices. They highlighted the difficulty of having to sell based on the cost price and urged the federal government to continue its efforts to alleviate the economic burden on citizens through intervention programs.
“We feel the pains of Nigerians, but it’s more painful that we have to sell based on the cost price,” one trader remarked. “We urge the government not to relent in its efforts to reduce the economic pains through various intervention programs.”
The Path Forward
The discussions between the FCCPC, market leaders, and traders in Lagos underline the complexities of addressing rising food prices. While insecurity and the removal of fuel subsidies are significant factors, a multi-faceted approach involving government intervention, enhanced security measures, and collaborative efforts among stakeholders is essential.
Moving forward, continuous dialogue and proactive measures will be crucial in stabilizing food prices and ensuring that consumers can afford essential commodities. The FCCPC’s ongoing engagement with market stakeholders represents a vital step in addressing these economic challenges and fostering a more stable market environment for all Nigerians.
