The Minister of Agriculture and Food Security, Abubakar Kyari, has attributed the recent decline in food prices to increased supply meeting steady demand.
In a video posted on his official X handle late Monday night, Kyari credited the price reduction to the 2024 harvest season, which significantly boosted food production.
He also linked it to the “bold interventions” of President Bola Ahmed Tinubu, whom he praised for supporting farmers to ramp up production.
“The recent drop in food prices is a direct result of increased supply meeting steady demand,” Kyari said.
Meanwhile, the Statistician-General of the Federation, Adeyemi Adeniran, announced that Nigeria’s headline inflation rate fell to 24.48 per cent year-on-year in January 2025, following a rebasing of the country’s Gross Domestic Product (GDP).
This marks a decline from the 34.84 per cent recorded in December 2024, which was calculated using the previous 2019 methodology.
According to the latest data, food inflation stood at 26.08 per cent in January, dropping from 39.84 per cent in December 2024.
Urban inflation was recorded at 26.09 per cent, while rural inflation stood at 22.15 per cent. Core inflation, which excludes volatile agricultural and energy prices, was 22.59 per cent.
The minister emphasised the role of microeconomic principles in market pricing, noting that supply and demand dynamics influence food prices.
“In 2024, we had a positive harvest, meaning more supply than previous years. It was a deliberate attempt by Mr. President to bring down food inflation to the nearest minimum,” Kyari stated.
To further stabilise prices, he said the federal government is set to implement additional measures within the “next two weeks”.
Kyari revealed that the initiative aims to curb inflation while ensuring local production remains unaffected.
“We are working on a price stabilisation mechanism. Within the next two weeks, we will roll out these steps to further dampen and bring down prices without discouraging local production,” he said.
He also pointed out that hoarding remains a significant challenge, as some traders who purchased goods at higher prices are reluctant to sell at lower rates.
“Last year, when paddy rice prices dropped to ₦768,000 per ton, the cost of production was ₦350,000. Someone was inflating the price, which went against the government’s agenda.
“Now, we have seen that some people are hoarding because they bought at high prices and don’t want to make losses. We are also discouraging hoarding,” Kyari added.
Speaking on long-term agricultural strategies, he highlighted the government’s commitment to year-round farming.
“We have completed the first dry season harvest in November, and we are now in the second part. We are going to do almost three cycles in the dry season before moving into the big wet season,” he said.
Kyari expressed confidence that Nigeria would soon achieve self-sufficiency in food production, addressing both availability and affordability concerns.
“God willing, we will be self-sufficient. Currently, there is availability, but we are tackling affordability to boost production,” he concluded.
