Over the years, the Nigerian government has deployed development financing initiatives to boost food production through increased access to finance for farmers and other small businesses in the sector. While progress may have been made in some areas, the country is still at a critical juncture, as access to food and its affordability remain a major problem for a large part of the population. This brief aims to examine how the government’s financing policies to improve food production have fared, given the prevailing economic conditions in the country. The focus is particularly on such financing programmes as administered by the Central Bank of Nigeria (CBN). It will highlight progress with these financing programmes and discuss other challenges to food production, which are possible drivers of the rising food inflation in the country.
December 31, 2022
Agricultural Development Financing and Food Inflation in Nigeria: What the Government may need to do differently
In the second quarter of 2016, the Nigerian economy witnessed its first recession in twenty years due to the interplay of several external and internal factors. The recession has continued until date and has given rise to relentless unemployment rate and job losses, double digit and soaring inflation, currency depreciation and widening gap between parallel market and official exchange rates, amongst other adverse effect on individuals and firms in the country. Thus, there is a need to take a deeper look into the nature of the present recession as well as the impact of monetary and fiscal policy responses thus far, in order to shed light on the way forward towards tackling the recession and ensuring sustainable economic growth. This paper analyses the ongoing recession in the Nigerian economy to provide insights into the interplay of events and recommendations for policy.