The economy of Nigeria is still distressed but President Muhammadu Buhari is happy with the progress so made in getting it out of recession

By Anayo Ezugwu    /Sept. 1, 2017 @ 15:24 GMT

DESPITE the federal government’s claim that the recession in the economy is receding, Nigerian families are still grappling with astronomical increase in the prices of essential commodities in the country. Almost everybody Realnews interviewed in  the street complained about the high price of food items.

Also, Realnews investigations show that price increase varies from one state to another.  Although Nigerians are used to crumbled economy from ages, low income earners have been at the receiving end of the current rising prices without any corresponding increase in their wages.

Traders at various markets visited by Realnews have different stories to tell about what they were also going through as sellers. From pepper to electrical appliance sellers the stories are the same. According to them, when they have finished selling some of items on the shelf and go to market to restock, the money they have could hardly buy much thereby leaving their shelves empty.

Consequently, staple foods such as rice, beans, cassava flakes are now slipping out of the hands of average Nigerians. Market survey conducted by Realnews in Lagos, last week revealed that the prices of some foodstuffs are now twice higher than what it was previously. Also, it showed that prices of food items differ minimally in different markets. For instance, the price of rice, beans, cassava flakes, palm oil, groundnut oil and pepper in Mile 12 market is different from what obtains in other major markets in the state. Mile 12 food prices is a lot cheaper than other markets apparently because it is major depot.

The survey also showed that presently the price of rice is gradually coming down as a 50 kilogramme bag of rice is sold between N15,000 and N18,000 depending on the brand of the product as against between N18,000 and N25,000 in 2016. A bag of (Iron) beans is sold for N37,000, compared to N30,000 in 2016. For (Brown) beans, a bag goes for N40,000 as against N32,000 in 2016.

Currently, the price of 50 kilogramme bag of garri (White) is N10,500 as against N9000 the previous year, while yellow garri is sold for N12,500 as against N10,500 in 2016. Realnews also found out that a basket of tomatoes now is sold for N10,000, compared to N8000 in 2016; a basket of pepper is N6,000, compared to N4,000 in 2016.  A kilo of chicken is now N1,200 as against N800 the previous year. While a kilo of fish (Titus) goes for N1,000 compared to N600 the previous year.

Confirming the increase in prices, the National Bureau of Statistics, NBS, in its latest report released on Monday, August 28, said the food price pressure continued into July as all major food sub-indexes increased, with food inflation in the country rising by 20.28 percent Year-on-Year in July. According to the NBS, this represents the highest year-on-year increase in food prices since 2009.

In the report, NBS noted that the food index in July was up by 0.37 percent over 19.91 percent recorded in June, adding that the rise in the food index was caused by increase in prices of bread and cereals, meat, fish, oils and fats, coffee, tea and cocoa, potatoes yam and other tubers and vegetables.

“On a month-on-month basis, the food sub-index increased by 1.52 percent in July, down by 0.47 percent points from 1.99 percent recorded in June. The average annual rate of change of the food sub-index for the 12-month period ending in July 2017, over the previous 12 month average was 18.25 percent, 0.38 percent points from the average annual rate of change recorded in June (17.87) percent,” it said.

The last time food inflation was this high in the country, at 20.9 percent in July 2008, was the peak of the 2007/2008 global food crisis brought on by harsh droughts in food-producing regions, higher energy costs, and increased speculation on food commodity prices.

Notwithstanding these figures, President Muhammadu Buhari is happy with the economic achievements of his administration. The president on Monday, August 28, said he was pleased with the progress being witnessed in all sectors of the economy. He expressed gladness that things were looking up after two years of what he called serious hard work.

According to a statement by Femi Adesina, his special adviser on media and publicity, the president spoke while receiving briefing from Senator Udo Udoma, minister of budget and national planning; Kemi Adeosun, minister of finance, and Godwin Emefiele, Governor of the Central Bank of Nigeria, CBN.

He said that the ministers and CBN governor updated the president on the improving state of the economy, implementation of the 2017 Budget, preparation for the 2018 Budget, revenue strategies, combined cost reduction and debt management. Also discussed were monetary policy strategies and their economic impact, among others.

But Governor Ayo Fayose of Ekiti State has described the President’s comment as another pointer to the fact that he has lost touch with the economic realities in the country. Fayose, in a statement on Wednesday, August 29, by Lere Olayinka, his special assistant on public communications and new media, said it was obvious that the Buhari’s close to three months stay in London, had taken his mind off the realities of the economic crisis being witnessed in the country.

“It is like the president endorsing the sufferings of Nigerians and this is painful. That President Buhari, who met exchange rate at N197 to $1, said he is pleased with the economy when exchange rate is now N370 to $1, is a clear indication that the government is being run on his behalf.

“The National Bureau of Statistics, in its unemployment report for the fourth quarter of 2016, said 3.67 million Nigerians became jobless in one yearand that the number of unemployed Nigerians rose from 7.51 million at the beginning of October 2015 to 11.19 million at the end of September 2016.

“The same NBS said in its June 2015 to May 2016 National Corruption Report that over N400bn was paid as bribes to public officials in Nigeria in one year (June 2015 – May 2016). Yet, they will tell Nigerians that they are fighting corruption when indeed, corruption is thriving under the All Progressives Congress government of President Buhari. It is clear that the President has lost touch with the real economic situation of the country.”

However, Obadiah Malafia, former deputy governor, Central Bank of Nigeria, CBN and director, Centre for Policy and Economic Research, has attributed the rising cost of food prices to herdsmen/farmers violent clashes. On Channels Television Sunrise Daily, he said the herdsmen-farmers violent clashes including rural bandit attacks created insecurity and fright amidst rural farmers thereby impeding farming activities and reducing farming productivity. He said these violent clashes instilled fear in the heart of rural farmers who now prefer farming at areas near their homes than going to the interior farms far from their homes.