Chrismas: Hard times Ahead Over Rising Food Prices

Fola James

The price of a bag of rice and other commodities is expected to hit the rooftop following the decision of the federal government to extend the closure of land borders across the country.

President Muhammadu Buhari had last Saturday directed the Nigerian Customs Service, NSC to make the announcement that the borders will not be opened for the rest of the year.

The border closure has now been extended to January 31 next year subject to further review, the Buhari administration said.

Pressure has mounted on the federal government from the business communities and government of neighboring countries affected by the closure, to re-open the border.

Bu the Buhari administration has shrugged off such pressure on the argument that the policy has helped indigenous farmers and curtailed smuggling of dangerous weapons into the country.

According to the directive, announced in a memo signed and dated November 1, 2019, by Victor Dimka, the Comptroller of Customs in charge of Enforcement, Investigation and Inspectorate, and addressed to Sector Coordinators of the Joint Border Operation Drill – Sectors 1, 2, 3, and 4, the federal government said security agencies should continue to man the borders until further notice.

The memo reads “I am directed to inform you that it is observed that despite the overwhelming success of the operation, particularly the security and economic benefits to the nation, a few strategic objectives are yet to be achieved.

Against this background, Mr President has approved the extension of the exercise to January 31, 2020.

Consequently, you are requested to convey the development to all personnel for their awareness and guidance.

Meanwhile, allowance for personnel sustenance and fuelling of vehicles for the period of extension will be paid as soon as possible.

This is for your information and necessary action, please.”

The announcement was not well received by many Nigerians who insist that the extension will further affect the price of food items in the market.

Prices of imported food commodities such as rice, poultry products have almost doubled since the policy was first introduced in August this year.

For instance, a bag of rice, sold in the past for between N13,000 and N15,000 has risen to more than N25,000.

The same for frozen products like turkey and chicken whose prices have risen by over 50 percent.

In view of the extension, therefore, market analysts insist that the prices for these essential commodities will further be pushed up as the festive season approaches, due to high demand during this period.

What this means is that the price of a bag of rice will rise by at least 30 per cent to N32,000 or more.

Even though local production of the commodity has increased since the borders were shut, analysts insist that such is not enough to meet the huge shortfall left by the import restriction.

“Nigerians should brace up for hard times during the Chrismas and new year celebrations because of the effect of this policy,” Dapo Ibiyemi, an economist told the magazine in Lagos.

He further disclosed that the “price push up will extend to the first and second quarters of next year except there’s a reversal of the policy within the short possible times”

That seems to be in doubt considering that the Buhari administration has given an indication of a possible extension except certain objectives are met.

Nigeria closed its land borders in August three months after President Buhari reluctantly signed the African Continental Free Trade Agreement (ACFTA).