July 2023 Food News: Inflation Crisis and Food System Transformation

Welcome to the July edition of our monthly food news. We bring you the latest updates on the Nigerian food space. In July, the country’s food sector witnessed significant developments as food inflation surged to record heights. The Knorr Jollof Fest spotlighted Nigerian food culture vibrantly, and the government declared a state of emergency on food security. Moreover, there’s exciting news about a transformative funding initiative that aims to revolutionize Nigeria’s food system.

So, grab a popcorn and let’s get into July’s food news update.

• Food Inflation Surges to Record Heights in July
• Knorr Jollof Fest Spotlights Nigerian Food Culture
• State of Emergency Declared in Nigeria as Food Security Worsens
• $500 Million Allocated for Nigeria’s Food System Transformation

Food Inflation Surges to Record Heights in July

Severe food inflation crisis grips Nigeria, as soaring prices of basic food items hit various states in the country. The escalation in food inflation figures can be attributed to the increase in the price of Premium Motor Spirit (PMS). Moreover, data from the Nigerian Bureau of Statistics reveals a significant rise in food inflation by 2.40 percent from May to June and by 25.25 percent on a year-on-year basis, marking a considerable increase compared to the rate recorded in June of the previous year.

Traders are linking the rising cost of basic foodstuff to the increase in petrol prices resulting from President Bola Tinubu’s removal of subsidy. Notably, the prices of rice, beans, and ground corn have surged, impacting consumers’ purchasing power. Rice, beans, and bread prices have experienced hikes in various regions across Nigeria. With the removal of fuel subsidy further exacerbating the situation. Consequently, both traders and consumers are urging the government to implement measures aimed at controlling inflation and stabilizing food prices.

Knorr Jollof Fest Spotlights Nigerian Food Culture

Jollof has undeniably become an internationally acclaimed dish and has firmly established itself among the favorite local dishes of Nigerians. Recognizing the immense love for Jollof in Nigeria, Knorr, the country’s leading seasoning brand, took the initiative to create a special day. The Knorr Jollof Fest, for Jollof enthusiasts nationwide to come together and celebrate this beloved dish. The event, which took place on the 23rd of July, 2023, at Muri Okunola park in Lagos, promised to be filled with fun, excitement, and games, with influencers adding to the festivities.

Renowned chefs showcased their culinary skills, preparing delectable Jollof dishes and hosting masterclasses to teach attendees how to recreate the magic in their own kitchens.

 

Furthermore, Knorr utilized the festival to promote its ‘Eat For Good’ campaign, encouraging healthy, nutritious, and sustainable eating habits among Nigerians. Attendees of the Knorr Jollof Fest relished a delightful experience as they indulged in a variety of tasty, healthy, and nutritious Jollof meals. The event served as a celebration of the nation’s love for Jollof, fostering unity as people came together to enjoy the ultimate dish.

State of Emergency Declared in Nigeria as Food Security Worsens

Nigerian authorities, in response to record inflation making basic foods unaffordable for many and causing malnutrition rates to rise, have declared a national emergency on food security. President Bola Tinubu’s adviser announced the emergency after a meeting with the president, aiming to address the inflation crisis resulting from the removal of a costly fuel subsidy. The government plans to redirect funds from the subsidy removal to the agricultural sector, providing fertilizers and grains to farmers and households struggling with high prices.

Furthermore, the government intends to establish a national commodity exchange board and strategic food reserves to stabilize food prices. However, climate change and insecurity present additional challenges that need to be addressed to achieve food sufficiency. To tackle these issues, the government’s new plan involves enhancing the security of farmers. It also includes providing irrigation for year-round food production. Nevertheless, some experts express concerns about the timing of distributing fertilizers and seeds to farmers and emphasize the need to address climate change for sustainable progress.

President Tinubu has also requested lawmakers’ approval for a stipend to support households using funds from a World Bank loan. The effectiveness of the government’s measures will be closely monitored by the public.

$500 Million Allocated for Nigeria’s Food System Transformation Efforts

During the UN Food Systems Summit in Rome, Italy, Vice President Kashim Shettima revealed that Nigeria has mobilized over half a billion dollars for a transformative food systems initiative. Nigeria has obtained the funds from various sources, including domestic resources, multilateral development banks, international financial institutions, and climate funds. The country will utilize these funds for innovation finance in food system transformation. Also to develop the agro value chain, and implementing Special Agro-Industrial Processing Zones programs.

Shettima showcased Nigeria’s successful Value Chain Development Programme (VCDP). It empowers vulnerable farmers and youth through partnerships with major food processing companies like OLAM. The Vice President expressed the government’s commitment to ending hunger. They also plan to implement the Special Agro-Industrial Processing Zones to advance food systems financing. President Bola Tinubu’s administration has declared a state of emergency in food security. He has taken significant steps to reposition the security architecture to support farms and farmers.

We have come to the end of this month’s food news. See you same time next month for more food news.