Dr. Promise Okagwa, an investor in Nigeria’s agricultural sector, has raised concerns over the increasing challenges faced by farmers due to soaring costs of raw materials.
Dr Okagwa, in a message to Ikorodu News Network (INN) on the 1st of May 2024, explained the urgent need for government intervention to address the mounting pressures on local farmers, exacerbated by issues ranging from foreign exchange shortages to escalating fuel costs.
Detailing the unprecedented nature of the current situation, Dr Okagwa stated, “Raw materials are too high. We have never experienced this.” He expressed grave concerns over the imminent threat to the sustainability of farms, noting that many are on the brink of closure due to financial strain.
The situation, he explained, has forced farmers to divert funds from other businesses to sustain their agricultural operations.
The underlying factors contributing to the crisis are multifaceted, according to Dr. Okagwa. He pointed to foreign exchange challenges as a significant hurdle, particularly since a substantial portion of agricultural inputs in Nigeria are imported.
The volatility in forex markets has led to skyrocketing prices for essential materials, further squeezing the margins of already struggling farmers.
Moreover, the issue extends beyond currency fluctuations. Dr. Okagwa emphasized the impact of rising costs of petroleum products, such as Premium Motor Spirit (PMS) and diesel, on agricultural operations.
The dependency on fuel for machinery, transportation, and irrigation exacerbates the financial burden on farmers, driving up the overall cost of production.
The ripple effects of these challenges are keenly felt in the market, with consumers bearing the brunt of inflated prices for food and local farm produce.
Dr. Okagwa stressed that the crisis transcends mere economic concerns, asserting, “It’s a very big challenge affecting the cost of food.”
The affordability and accessibility of nutritious food items are increasingly compromised, posing a threat to food security and exacerbating socioeconomic disparities.
In light of these pressing issues, Dr. Okagwa called upon the government to take decisive action to alleviate the burden on farmers and safeguard the agricultural sector’s sustainability.
He urged policymakers to implement measures aimed at stabilizing foreign exchange rates, ensuring timely access to affordable credit facilities, and addressing the underlying structural inefficiencies in the supply chain.
“My plea is for the government to intervene in the urgency of the situation”.
“The resilience of local farmers and the nation’s food security hinge upon swift and concerted efforts to address the root causes of the crisis and pave the way for a sustainable and thriving agricultural ecosystem” Dr Okagwa asserted.
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