Inflation: FG To Convene Food Security Council Meeting

Inflation: FG To Convene Food Security Council Meeting

Worried by the upswing in prices of food items in the country, the Federal Government has resolved to convene a National Food Security Council meeting shortly.

This was disclosed by the Minister of Finance, Budget and National Planning, Zainab Ahmed, at a briefing after the Federal Executive Council (FEC) meeting chaired by Vice President Yemi Osinbajo at the Presidential Villa yesterday.

The Food Security Council to be chaired by President Muhammadu Buhari and co-chaired by the Kebbi State Governor, Atiku Bagudu, would meet “very quickly to address the issue of food inflation, and also provide a plan and some methods in which we can reduce the cost of food to support improved food prices for the citizenry,” she said. Ahmed further said the Council was briefed on the rising inflation rate and the need to manage the cost of inflation in the country.

The minister, who disclosed that the government was making efforts to address the declining sectors of the economy, said the Council received a report from her ministry for the first quarter of 2022 GDP, which shows that the Nigerian economy had grown by 3.1 per cent in the first quarter as against a growth of 0.5 per cent in the corresponding period in 2021.

“This growth shows a gradual economic stability from the recession that we witnessed in 2020. And also it shows the six-quarter of positive growth that the Nigerian economy has presented. “So, of the 46 economic activities, the bulk sector performance show that services sector grew strongly by 4.7 per cent, agriculture also grew by 3.61per cent, Industry on the other hand contracted by -6.81per cent, and there’s also a significant contraction of 26.04 per cent in the crude oil, petroleum and natural gas sector.

“Coal mining sector also declined, oil refinery the biggest contraction of 44.26 per cent; also electricity sector, textile output. Therefore, even though there has been growth in some sectors, there are significant contractions in others, but the net effect is positive growth. “We’re very mindful of the fact that unless we have most of the sectors growing, especially the growth in the jobs impacted sectors, that this growth that is positive will not be directly felt by the people,” she said. The Council also approved a total sum of N23.115 billion for contracts in both Police Affairs and Petroleum Resources ministries.

While the Police Affairs ministries got the sum of N8,315,209,825 for procurement of raincoats, police boots and others, the petroleum ministry got N11 billion for contracts. Giving the breakdown, the Minister of Police Affairs, Maigari Dingyadi, said the Council okayed the Memorandum of Understanding for the purchase of 82 Toyota brand of vehicles; N1.9 billion for customised raincoat; customized police boots at N576 million; Micro First Aid Kits for the police at N1 billion; customised instructional materials for the police colleges and schools at N664 million and supply of drugs and medical equipment for police hospitals across the country at N2 billion. Minister of State, Petroleum Resources, Timipre Sylva, disclosed that the Council approved the memo for NNPC Limited to execute a Memorandum of Understanding with ECOWAS for the construction of the Nigeria-Morocco Gas Pipeline to take gas to 15 West African countries and through Morocco to Spain and Europe.

The Minister of Power, Abubakar Aliyu, said the Council approved the contract “to supply and install emergency restoration system or 330 kv and 132kv transmission line for ongoing rehabilitation works in Lagos at the sum of $968,818 as the offshore component, while the onshore component was put at N7.393 million.

Asked for an update on the Federal Government’s electricity deal with Siemens of Germany, the minister explained that he had toured their facilities in Germany to ascertain the level of work in the production of the required equipment and was satisfied with the state of work so far. According to him, despite the impacts of the ongoing Russia/Ukraine war which slowed down the process of their production, the government had been able to get Siemens committed to supply 10 mobile transformers to be installed in the country by September this year.