Story from Kenneth AFOR, Lagos
A Senior Economist at SM Professionals, Paul Alaje, has warned that Nigerians should be ready for a hike in food prices next year as a result of the recent looting of warehouses in some states where most of the country’s strategic grain reserves are kept.
He warned that food inflation prices may rise between 17 to 18 percent next year.
Alaje gave the warning on Friday on a television business programme on TVC.
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Hoodlums on several occasions invaded the Idu Industrial warehouse in Jabi, the Federal Capital Territory (FCT), Jos, Plateau State capital and other state government’s warehouses and carted away most of the grains such as rice, beans and maize meant for planting that was stored.
Also, hoodlums carted away agricultural inputs such as fertilisers, treated seeds for planting and farm machinery.
This action according to Alaje would have grave consequences on food prices next year if the government do not take drastic steps in mitigating the looming hike.
According to the economist, the recent looting wouldn’t have occurred if there was enough information concerning the distribution of palliatives by the state governments.
“Little information was heard” from state governors who actually gave out palliatives donated by the Committee Against COVID-19 (CACOVID).
While most of the private sector businesses were looted and their facilities destroyed, Alaje hinted that more Nigerians might be thrown into the unemployment radar in the already 28.6 percent unemployed figure and the 39.4 percent of unemployed youths according to the Federal Bureau of Statistics (FBS).
He also disclosed that the private sector in the FCT has lost about N3 billion in assets which were destroyed as a result of the looting with Lagos State inclusive.
Based on this assertion, he advised federal and state governments to do the needful by supporting the private sector in terms of protecting and provide them with funds as a buffer for the recovery of their businesses.
Also, the state should open up their economies quickly as well as provide security because so much has been lost during the violent protest hijacked by hoodlums from the #EndSARS protest.
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