…Say Proposed Board Incapable Of Regulating Food Prices
…Want Government To Address Main Causes Of Price Hikes
LAGOS – Some Nigerians have said that although the earlier suggestion by the Federal Government to establish a National Commodity Board is commendable, it cannot single-handedly bring down or stabilise food prices.
Recall that Vice President Kashim Shettima last Tuesday disclosed government plans to establish a National Commodity Board as a solution to the escalating food inflation in the country.
Kashim Shettima stated this at a two-day, high-level strategic meeting on climate change, food systems and resource mobilisation, held in Abuja.
According to Shettima, the board would be given the mandate to assess and regulate food prices, as well as maintain a strategic food reserve for stabilising prices of crucial grains and other food items.
Barrister Titilope Anifowoshe, a Kwara-based lawyer and political strategist, one of those who spoke to Sunday Independent on the issue, acknowledged that the creation of a National Commodity Board may appear to be a proactive step towards addressing food price fluctuations and stabilising critical markets.
Barrister Anifowoshe, however, said it is also crucial to consider the underlying factors contributing to food insecurity in Nigeria.
These, she listed as insecurity, government policies, and climate change, saying they significantly impact agricultural production and food availability.
Anifowoshe, a budding politician, stressed that insecurity, including terrorism, territorial disputes and kidnapping, hamper farmers’ ability to operate effectively, leading to disruptions in agricultural production and food shortages.
She stated: “Weak macroeconomic conditions, influenced by decisions like the CBN’s redesign of the Nigerian Naira, further exacerbate the situation by causing cash shortages and currency market distortions.
“ECOWAS sanctions on Niger Republic and currency depreciation against the CFA Franc contribute to the diversion of foodstuffs from Nigeria to neighbouring countries, intensifying food scarcity within the country.
“A National Commodity Board may have a role in managing food prices; it cannot single-handedly address the complex issues affecting food security in Nigeria.”
Contributing, Bishop Dr Joseph Ighalo Edoro, a public affairs commentator, and cleric, stated that the proposed commodity board is not a new thing in Nigeria, as before now, there exists a Price Control Board attached to the Ministry of Trade.
Bishop Edoro also stressed that there is also the Federal Consumer Protection Commission, saying that these agencies are saddled with the responsibility of regulating prices on essential products in Nigeria.
He stated: “The problem with Nigeria is that those in authority, out of sheer inordinate ambition and favouritism, duplicate agencies with different nomenclature yet same terms of reference.
“So, why create a new one when we already have two existing ones. If they are docile, then galvanise them with vibrant human resource persons; having said that the goal of these agencies include regulation of prices, statistics, intervention and more.
“In the present circumstance, the control of prices will be a mirage bearing in mind that the conditions to trade are quite unfriendly.
“How do you control prices in an inflationary economy when petrol, transportation, electricity, are beyond reach and are alarming?
“How do you put a price on a commodity that was produced at high cost to sell at low cost? This will mean the government will have to subvent to all major sectors of trade before it can control prices.
“Moreso, it will bring discouragement, lack of innovation, complacency, black market and more.
“The recent judgment of Justice Allagoa instructing the regulation and definition of prices of some commodities is another way of saying the government should subvent and then have reasons to regulate and fix prices.
“In the present circumstance in Nigeria, the Commodity Board will be a wrong move to make.”
Prof John Ebhomien, a financial expert and former World Bank/IMF economist, stated: “The proposed National Commodity Board is a welcome development.
“You would recall vividly those good old days of the Nigeria Cotton Board, the Nigeria Cocoa Board, the Nigeria Groundnut Board, etc, which thrived admirably.
“But, to the surprise of many Nigerians, these boards went under with no apparent justification.
“It would be too hasty to say whether the establishment of the commodity board will bring down food prices. But, l think the establishment of these boards will help to regulate or stabilise the market for commodities.
“The government must do the needful and tackle the hydra-headed problems of insecurity, unemployment, inflation and soaring exchange rates.
“Government must take urgent steps to ensure unified exchange rates. In addition, urgent steps must be taken to open the borders to allow importation of foods.
“The farmers should be given palliatives, soft loans and adequate security. A situation where our farmers are no longer safe to go to their farms is unacceptable.
“My strong appeal to Nigerians is to be patient with President Bola Ahmed Tinubu to fix the economy.
“The challenges confronting our country were as a result of maladministration of past administrations with impunity. It would be unfair to heap the blame on the present administration.”
Dr Rexkennedy Saltlove, President/Executive Director, Citizens Rights and Empowerment Advocacy Initiative (CREMA Initiative), said the proposed National Commodity Board is a very welcome development.
According to him, “That is, if this is not just another political propaganda and academic exercise, but is followed through and established.
“The role of middle men, especially in a capitalist system of government as practised in our country, is worrisome, that profit margin can go as high as 100 to 1000% interest rate.
“This is because, government does not play any vital role in the crop seed farmers purchased for farming, regulate commodity products prices and do not have complaints lines for citizens and consumers.
“If it is set up as a crop seed allocation, commodity warehousing and price regulatory agency, and it is not infected by the evident pervasive corruption on going in the system, it will really be a game changer in stabilising and bringing down prices, if government policies do not help to make the Naira go down continuously against the dollars.
“This is because, the National Commodity Board (NCB) will help to provide farmers with seedlings at really good and affordable prices, supervise and curtail irregular price fluctuation by middle men and regulate profit margins expected of consumable products in the marketplace.
“As I do say, I am a Thomas on this government since the previous administration and will see all they say as just academic exercise until there is clear cut implementation and direct impact on the citizens.”
Dr Andrews Okhirebhu, a public affairs analyst, stated: “Well, the proposed National Commodity Board to bring down or stabilise food prices in the country is a seemingly noble idea.
“I am not trying to be pessimistic about anything. The fears are: How are we too sure that as sound as the proposal is, it is not just one of the borrowed ideas somewhere to be made as usual, a rhetorical political grammar to defraud the citizenry by few individuals.
“The truth is that you cannot fool everyone all the time. How can any government in Nigeria control prices of goods and services where the government itself is not into production to raise a competitive edge of advantage of control over prices of others.
“That is why I said it is a copied or borrowed idea. America can come up and control the prices of goods and services, because they are directly involved with the farmers, the industries and individual manufacturers to create enabling environments and at the same time subsidising their goods and services for affordability of the citizenry.
“Qatar, Saudi Arabia, etc, can come up any time to say they want to control the output, production and prices in the global market. This is because they are the major producers of the products.
“In the Nigeria where the government cannot control the pump fuel prices of which it has a monopoly, how can it control the prices of what does not belong to it?
“Looking at the records of many past ideas, can we honestly point to at least one that has ever worked, but ended up being used to siphon and defraud the country?
“Because, many ugly revelations are coming up beyond the worst, we think things are bad enough, but going by what is being unveiled the level of corruption in the system is a child’s play.
“Even the very fools are not taking the Nigerian government seriously to be trusted in anything again. I am very sorry for Nigerians!”
But President Bola Tinubu later clarified that he would not set up any board to regulate prices of food commodities in the country.
“What I will not do is to set a price control board. I will not also approve the importation of food,” Tinubu said at a meeting with 36 state governors, attended by the Vice-President, the National Security Adviser, the Inspector-General of Police, the Director-General of the DSS, and some ministers at the State House in Abuja on Thursday
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