Subsidy Removal: FG Moves to Crash Price of Food Items in Nigeria

The Federal Government has commenced plans to crash the price of food items in Nigeria to cushion the effect of subsidy removal on citizens.

Daily Report Nigeria reports that the National Economic Council (NEC) has directed the National Emergency Management Agency (NEMA) to distribute grains to all states in the country with immediate effect.

According to the directive, the distribution of the food items will commence within the next 14 days in a bid to bring down the price of these items.

The development was announced by
Gov. Bala Mohammed of Bauchi State while briefing newsmen on the outcome of the NEC meeting, chaired by Vice President Kashim Shettima at the Presidential Villa, Abuja, on Thursday.

Going by Shettima’s directive, NEMA will release the grains immediately to states as they will be involved in the mechanism.

Mohammed explained that states will decide whether to sell the grains at subsidized rates or give them free of charge to citizens or sell them in a way that price of food items will be brought down and made affordable.

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He said:

“The National Economic Council (NEC) discussed giving broader interventions to all the sectors and all the segments of the society.

“Food is a key component of what is on the table in terms of food security. On the escalation of prices of foodstuff, we are happy because NEC has seriously engaged with NEMA, the Central Bank of Nigeria (CBN) and indeed with the Ministry of Agriculture.

“We have some buffer stock that is already there with NEMA, so council directed that the states will immediately be allocated substantial portions of food items, grains and so on for distribution so that the prices of foodstuff will come down.

“These grains will be given at subsidized rates or at the rates they were acquired. The CBN’s Anchor Borrowers Programme and Agric programme have ensured a large rice and other grains stock. These will be made available within one week so that they will be distributed to the states.”