3 Reasons Why The Prices Of Food Will Increase In 2022

Why The Prices Of Food Will Increase In 2022

If questions such as will food prices go down in 2022, are food prices going up, why the prices of food will increase in 2022 had been hovering in your mind, you need to read this to the end.

As we approach the end of 2021 and look forward to 2022, as Nigerians, we believe it is critical that we begin to consider food as part of the things we should be conscious of. This is because we know that as individuals, we have resolutions and all of that, we start planning ahead for next year, having thought of things that we will need to put in place either for our career or for our families. All of these are fantastic, but we often overlook food goals, and there are three significant reasons why our food prices will rise in 2022.

It’s critical because we believe there are two methods to improve people’s wealth in any country.

First approach to raise people’s wealth is to increase their income or earning ability.

The second strategy to raise people’s wealth is to lower the cost of the goods and services they spend money on. Option one, you would agree, is not very possible, but option two appears to be a more manageable undertaking. However, according to statistics released earlier this year, the majority of Nigerians spend more than half of their income on food. This indicates that lowering the price of food will immediately enhance Nigerians’ wealth. Unfortunately, food prices will increase in 2022.

Aside from the numerous factors such as roads, policies, and so on, here are three explanations that will interfere and cause food prices to soar. The first reason for an increase in food prices in 2022 is;

1. The closure of the Tiga Dams for renovation
Many people have probably never heard of Kano’s Tiga Dam. The dam was constructed during Governor Audu Bako’s administration in a bid to promote food security through irrigation projects. The dam has a maximum capacity of roughly 2,000,000 cubic meters and covers an area of 178 square kilometers (69 square miles) (71,000,000 cu ft). The Kano River Irrigation Project and Kano City both receive water from the dam.

Tiga Dam is directly responsible for irrigating more than 78 thousand acres of land. It is the source of more than 578,000 metric tons of tomatoes. This number of tomatoes will be removed from circulation due to the closing of the Tiga dams for rehabilitation, and for a country where we are already unable to meet our tomato needs.

As more tomato paste enterprises emerge, we will be forced to rely heavily on importation of even fresh tomatoes to satisfy our needs, which simply means that the price of tomatoes, peppers, onions, and other vegetables will skyrocket. Normally, we use irrigation system to enhance crop growth during dry season, and food prices are expected to fall. If the cut-off of output from Tiga dams is not well managed, food prices are expected to rise again.

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2. Nigerian Government is proposing removal of fuel subsidy
We know from history that when the price of fuel rises, so does the price of everything else that is directly or indirectly tied to fuel economy, including food. Food delivery is reliant on the usage of fuel by transporters. Farmers will have to transport farm produce from their farms to wherever the food will be consumed. Farmers who rely on input providers would have to travel to receive the inputs or suppliers. Suppliers of inputs would raise their prices as well.

Nigeria’s Federal Government has previously said that the fallback will be minimal. They promised 40 million homes or individuals about 5,000 naira. Our fear is that if the government is serious in its intentions, and those who travel about to dispense these monies are likewise sincere, you would agree with us that the inflation caused by the subsidy removal will greatly outweigh the N5,000.

3. The reality of the year leading up to the election
In Nigeria, there will be a lot more money in circulation, which will lead to increased inflation, and with more inflation, we can expect food prices to skyrocket. Have you started thinking about ways to ensure that you are food secure as people, companies, corporate bodies, religious bodies, and families? If food prices rise while income remains low, we will be generating or having poorer people by the end of 2022.

You must begin your planning for food security in 2022 now. You can buy a farm, connect with farmers, join farmers’ cooperatives, have a farm in your estate, compound, garden, or living quarters, among other things. Consider how you can make the most of the resources within your reach.

We hope this aids someone in better planning for 2022. We now have a new Covid-19 version (omicron). We expect to be able to plan such that by the end of 2022, we will be better and stronger as a nation. Food production should not be seasoned because hunger is not seasonal. If food is a right, hunger is a crime.

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