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REAVELED: Why Food Prices May Continue To Increase

Published

7 months ago

Apr 19, 2024.

LCCI warns of persistent food pricess increases in Nigeria
International tensions and threats to key shipping routes exacerbate the impact on Nigeria’s market.
Decentralization of agricultural activities, particularly into poultry and fisheries

EKO HOT BLOG reports that the Lagos Chamber of Commerce and Industry (LCCI) has issued a warning that the soaring food prices in Nigeria may persist if global supply chain disruptions do not abate soon.
This statement was made by the Chamber’s president, Mr. Gabriel Idahosa, during his State of the Economy Address to the media in Lagos on Thursday.

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The LCCI highlighted that ongoing international tensions, including the conflicts in Ukraine and between Israel, Hamas, and Iran, along with threats to key shipping routes like the Suez Canal and the Red Sea, continue to significantly impact global supply chains.

These disruptions are felt profoundly in the Nigerian market, where they contribute to escalating food prices.

Idahosa pointed out that while Nigeria’s economy saw a growth of 3.46% year-on-year in the fourth quarter, the first quarter of 2024 has been marred by volatility in the foreign exchange market, which in turn has driven up production costs. This volatility threatens to undermine the gains achieved so far.

food prices

The business advocacy group noted that despite an average growth of 2.7% recorded in 2023, Nigeria still needs to implement aggressive growth mechanisms to meet the government’s budget benchmark of 3.76%.

One key strategy suggested by the Chamber is the decentralization of agricultural activities, which are currently overly concentrated on crop farming.

According to the LCCI, diversifying into poultry and fisheries is essential, not just to boost economic growth but also to mitigate risks.