Fertilizer subsidy, micro farming seen cutting cost of healthy diets

Analysts say fertilizer subsidy and micro farming can help to reduce the rising cost of healthy diets in Nigeria.

The national average cost of a healthy diet (CoHD) in the country increased by 7.3 percent to N1, 346 per adult per day in September 2024 compared to N1,255 in August 2024.

This was revealed in a September report by the National Bureau of Statistics (NBS), Nigeria in collaboration with the Global Alliance for Improved Nutrition (GAIN).

Agricultural experts and economists say subsidising the cost of fertilisers and adopting micro farming will not only address the rising costs but also improve food production, reduce food imports, and make healthy diets more affordable.

Kabir Ibrahim, national president of All Farmers Association of Nigeria (AFAN), said the short-term decline of food inflation may be attributed to the stop-gap importation of some items to cushion the inflationary trend, noting however that Nigerians are yet to see any remarkable drop in the cost of food.

Read also: FG empowers Edo farmers with 18,000 bags of fertilizers

Food inflation in September 2024 stood at 37.77 percent year-on-year, marking an increase of 7.13 percentage points from the 30.64 percent reported in September 2023. On a month-on-month basis, food inflation in September 2024 represents a rise from 37.52 percent in August.

Nigeria plans to import food at zero tariff to cool food prices. Its implementation is however yet to begin due to lack of coordination between the Federal Ministry of Finance and the Nigeria Customs Service.

“The sale and distribution of the imported items should be properly supervised to ensure that the majority of Nigerians enjoy the free-tariff window,” Ibrahim said.

He noted that the harvest season may bring down some prices of farm produce, noting that there is a need to intensify food production in the country.

“This can be achieved by creating a sustainable subsidy regime on all agricultural inputs such as fertilisers, agro-chemicals, light mechanisation equipment, seeds, and transportation to enable the smallholder farmers who are unarguably the engine room of food security in Nigeria today,” Kabir emphasised.

The latest NBS report said that the cost of a healthy diet is the minimum cost of food needed to meet international recommendations in Nigeria but it has risen faster than general inflation and food inflation.

Samson G. Simon, chief economist at ARKK Economics and Data Limited, attributed the rising cost of healthy diets to a systemic problem of food insecurity in Nigeria.

He emphasised that adopting micro farming can beat the cost of food per adult, stressing that leveraging vocational skills to earn an extra income can improve the purchasing power of Nigerians.

“The Nigerian Financial Services Market Report revealed that only 2.4 percent of Nigerians earn above N200, 000 per month, and 3.7 percent earn between N150,000 and N200,000. About 8.3 percent earn between N100,00 to N150,000, 19.3 percent earn N50,000 to N100,000, 21.2 percent earn N35,000 to N50,000, 27.8 percent earn N35,000 while 17.1 percent are unemployed Nigerians,” he said.

Simon noted that regardless of an employee’s monthly income, those who are gainfully employed still struggle to afford healthy diets per day due to their high prices.

Read also: NEMA donates 16,169 litres liquid fertilizer to Benue farmers

“However, if going to the farm is not safe, Nigerians can create a farm garden in their homes to cultivate staple foods and feed their family,” he emphasised.

The latest NBS report highlighted that the average cost of a healthy diet was highest in the South-West at N1, 598 per adult per day, compared to N1, 144 per adult per day in the North-West.

“At the State level Osun, Ogun and Lagos States recorded the highest cost with N1,661, N1,650, and N1,639 respectively. Katsina, Jigawa and Kebbi accounted for the lowest costs with N1,043, N1,087 and N1,118 respectively,” the report said.

Olorundero Abiodun, managing partner of Prasinos Farms, noted that the sudden climate change resulting in floods in some states is one of the major factors driving the costs of farm products.

“In the North, there hasn’t been enough rain and when it rains, it results in flooding. However, the scarcity of rain in previous months reduced the production level, and even the cost of fuel to transport these products is factored into food commodities,” he said.

He noted that high energy costs also affect the cost of transportation of farm produce from one state to another.

“Beans are predominantly cultivated in the North and they are still expensive due to fuel prices. Transporting it down to Lagos and other states makes it more expensive leading to an increase in the cost of healthy diets,” Olorundade said.