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Why Nigeria Is Yet To Be Food Secured – Varsity Don

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A University Lecturer with Agronomy Department, Faculty of Agriculture in Bayero University, Kano, BUK, Sani Miko has listed factors responsible for why Nigeria is yet to be food secured.

Miko who categorized the factors into Internal and external policy challenges undermining the nation’s food security, said they include inadequate funding for the agricultural sector, threat of climate change for sustainable agriculture, insecurity of agricultural land and investments, insufficient value addition and agro-industrial processing facilities and low agricultural export among others.

The Varsity Don stated this while delivering a paper titled, “Policy Challenges To Food Security in Nigeria” during an annual Ramadan lecture organized by the Islamic Forum of Nigeria National Headquarters in Kano.

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According to him, “Indeed, there are numerous challenges that prevented the Nigerian agricultural sector from attaining its full potential. They can be categorized into Internal and external policy challenges undermining food security in the country. The chief among them are as follows:

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“Inadequate funding for the agricultural sector. Funding is inadequate to drive agricultural development in Nigeria.

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“Achieving agricultural transformation would require funding beyond what the current budgetary allocation would provide.

“Over the years, Agriculture receives low investment from both State and Federal Governments. Example, Federal Government made budgetary allocation of between 1.3% and 3.4% to Agriculture in annual budget from the year, 2000 to 2007.

“In the year 2017, combined expenditure of the federal and state governments showed they spent only 1 .8 percent of their total annual budget to agriculture.

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“Threat of Climate Change for Sustainable agriculture. This is negatively affecting the Nigerian agricultural sector while the policy response and the needed interventions to mitigate the impact has remained largely ad-hoc.

Another factor is insecurity of Agricultural land and investments which is currently posing greater risk to agricultural production, processing, marketing and delivery of essential services.

“The menace of Boko Haram, Banditry and communal, farmers and pastoralists conflicts have devastated livelihoods and investments of hundreds of farming and pastoral communities.

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“Low level of agricultural mechanization. The availability and accessibility of macro and micro mechanization equipment such as tractors, power tillers, planters, combine harvesters and others needed for land preparation and other agricultural activities is very low in the country.

“Another factor is inadequate rural Infrastructure. The capacity of the rural communities for massive agricultural production and on-farm processing has been constrained by inadequate road networks, power supply, irrigation infrastructure, storage and processing facilities.

“Poor extension services delivery: With an average of 1:10,000 extensions to farmer ratio across the country, farmers receive limited guidance and training in technology adoption. Also, limited access to affordable credit is another factor where farmers grapple with limited access to finance and high interest rates even with the interventions by the CBN.

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“Similarly, issue of ineffectual synergy which relates to ineffective policy formulation and implementation structures at intra and inter-federal Ministries, Department and Agencies (MDAs) and weak synergy between federal and states MDAs. This has led to persistent inter and intra-agency rivalry in the sector.

“However, given the interdependent nature of international economic relations, it is unlikely that a country like Nigeria would be able to achieve its food security goal using its internal dynamics alone. For any country to be able to achieve its food security goal, it would need to think and act both locally and globally.

“This would need an adjustment of its relations with international, regional, and sub-regional institutions like the FAO, the European Union (EU), and Economic Community of West African States (ECOWAS).

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“It would also require seeking the understanding and support of some countries, which may be negatively affected by some agricultural, food, and fiscal policies of Nigeria.

“Thus, the ban placed on the import of some agricultural products – like Rice and Wheat, frozen chicken, and meat – in order to encourage local production, hurts the exporting countries of these food items to Nigeria.

“This can provoke retaliation against Nigeria’s export of cash crops.

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“These countries need to be reassured that Nigeria’s import prohibition of food items was not aimed to rubbish their ingenuity to produce so much food for local consumption and export the surplus; while greater collaboration is also needed with FAO in order to keep technical and financial aids that regularly come from the organization flowing.

“In addition, it would be helpful for the Nigerian government to take a hard and more discerning look at the usual irritating and self-serving suggestion from the World Bank, IMF, and the developed countries against subsidies in agriculture in developing countries.

“This is because it is now evident that the suggestion is at variance with the practice in the developed countries.

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“The developed countries do subsidize agricultural products. It is the support and subsidies that have enabled greater agricultural production and cheaper food without depressing the income of the farmers, but generating surpluses that the developed countries dole out as food aid to the developing countries, where the food aid sometimes serves as a disincentive to local food production.

“The Nigerian government has made food security a top priority in its economic reform agenda. It has also formulated agricultural policies and adopted some strategies it believes will make the agricultural sector of the economy more viable to ensure food security but the goal of food security seems increasingly elusive because the formulation and implementation of agricultural policies alone are not yielding the desired results and even if it is conceded that they are yielding some results, such results are incredibly marginal to be noticed by the people.

“This is so and likely to remain like that because of the lacuna in the whole agricultural development program, typified by the absence of a food policy, ineffective linkage between the local food system, international food production, and supply system; inadequate funding of science and technology, universally acknowledged as one of the pillars on which food security rests; and the inability of the government to tackle decisively the increasing level of poverty and insecurity, which reduces access of many Nigerians to food production, supply and consumption,” Miko stated.

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NNPCL Raises Fuel Price

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The Nigerian National Petroleum Company Limited (NNPCL) has increased the pump price of petrol from ₦865 to ₦992 per litre, marking a fresh hike that has sparked widespread concern among motorists and consumers .

As of the time of filing this report, the company has not released any official statement explaining the reason for the sudden adjustment.

During visits to several NNPC retail outlets, The Nation observed fuel attendants recalibrating their pumps to reflect the new price.

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At NNPC filling station on Ogunusi road, Ojodu Berger, petrol attendants at the station said they were instructed to change the price to reflect the new rate N992 per litre.

However, checks at Ibafo along the Lagos /Ibadan expressway showed that NNPC outlets still displayed the old price of N875 per litre, although they were not selling to commuters.

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Most of the NNPC stations were not dispensing fuel.

 

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CBN Directs Banks To Refund Failed ATM Transactions Within 48hrs

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The Central Bank of Nigeria has directed Deposit Money Banks and other financial institutions to refund customers for failed Automated Teller Machine transactions within 48 hours, in a sweeping reform aimed at protecting consumers and restoring confidence in the banking system.

The directive is contained in a draft guideline released by the apex bank on Saturday, titled “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines in Nigeria.”

The document, signed by Musa I. Jimoh, Director of Payments System Policy Department, was circulated to banks, payment service providers, card schemes, and independent ATM deployers, with a call for stakeholder feedback by October 31, 2025.

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Under the draft, failed “on-us” transactions, where customers use their own bank’s ATM, must be reversed instantly. If technical glitches prevent immediate reversal, the bank is required to manually refund the customer within 24 hours.

READ ALSO:CBN Sets POS Maximum Transactions In Fresh Guidelines

For “not-on-us” transactions, involving other banks’ ATMs, refunds must be processed within 48 hours.

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“Customers must not be made to suffer for failed transactions caused by system errors or network failures,” the circular stressed.

In a significant shift, the CBN mandated banks and ATM acquirers to deploy technology that automatically reverses failed or partial transactions, removing the need for customers to lodge complaints.

Institutions holding customer funds due to failed disbursements must reconcile and return balances immediately.

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According to the apex bank, these measures respond to widespread frustration over delayed refunds and poor customer service and form part of a broader effort to enhance consumer protection, improve reliability, and modernise Nigeria’s payment infrastructure in line with global standards.

The guidelines will also overhaul ATM operations nationwide. Banks and card issuers are now required to deploy at least one ATM for every 5,000 active cards, with phased targets of 30% compliance in 2026, 60% in 2027, and full compliance by 2028. Any future deployment, relocation, or decommissioning of ATMs must receive prior approval from the CBN.

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To ensure safety, ATMs must be fitted with anti-skimming devices, CCTV cameras, and placed in enclosed or well-lit areas.

Machines are expected to comply with Payment Card Industry Data Security Standards, maintain audit logs, and display functional helpdesk contacts. At least 2% of all ATMs must feature tactile symbols for visually impaired customers.

READ ALSO:CBN, UBA, Others In Benin Given Ultimatum To Remove Their Buildings Or Be Demolished

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ATMs are also required to dispense cash before returning cards, allow free PIN changes, issue receipts for all transactions except balance inquiries, display clear transaction fees, dispense only clean banknotes, and provide backup power to reduce downtime.

Downtime must not exceed 72 consecutive hours, after which operators must inform the public of the cause and expected restoration time.

The CBN will enforce compliance through regular audits, on-site inspections, and monthly reports from ATM operators detailing deployments and locations. Defaulting institutions risk sanctions, though fines were not specified.

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The apex bank explained that the overhaul was necessary due to rising complaints about failed transactions, cyber fraud, and declining service quality, noting that “the goal is to build a payments system that works seamlessly for everyone, urban and rural users alike.”

Nigeria’s electronic payments landscape has grown rapidly in recent years, with 200 million cardholders and rising reliance on digital banking, but network failures, poor infrastructure, and delayed reversals have continued to undermine confidence.

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The fresh guidelines, coming eight months after a revision of ATM fees, are expected to streamline service delivery, enhance transaction security, and hold banks accountable. Stakeholders are invited to submit feedback ahead of the final policy adoption, which could take effect before the end of the year.

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Nigerian Stock Market Hits 10th Consecutive Uptrend As investors Gain N308bn

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The Nigerian Stock Market recorded its 10th consecutive uptrend as investors raked in N308 billion gain on Thursday.

This comes as the Nigerian Exchange Limited, NGX, market capitalisation, which opened at N92.490 trillion, appreciated by 0.33 per cent to close at N92.798 trillion on Thursday.

Also, the All-Share Index added 0.33 per cent, or 485.25 points, to close at 146,204.34, compared with 145,719.09 recorded on Wednesday.

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Increased trading in Eunisell Interlinked, Caverton Offshore Support Group, Sunu Assurances, Industrial and Medical Gases, Mecure, and 27 other advancing stocks boosted market performance on Thursday.

To this end, the market breadth also closed positive with 32 gainers and 21 losers.

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Further analysis showed that Eunisell Interlinked and Caverton Offshore Support Group led the gainers’ chart by 10 per cent each, closing at N44 and N6.93 per share, respectively, while FTN Cocoa Processors led the losers’ table by 6.67 per cent, closing at N5.60 per share.

READ ALSO:UK Stock Markets Plunge In Biggest Daily Fall Amid Trump Tariff

Market activity showed a decline in the number of deals and volume traded but an improvement in trade value.

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Accordingly, a total of 346.99 million shares worth N27.43 billion were traded in 24,691 deals, compared with 525.72 million shares worth N13.61 billion exchanged in 25,597 deals on Wednesday.

Fidelity Bank topped the activity chart with 42.01 million shares valued at N861.54 million.

According to DAILY POST, NGX has continued its bullish run from last month’s end to date.

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