Economic Management Team Announces Crop Production Growth Amid Rising Costs.
The Economic Management Team (EMT) has reported a 4.5% increase in overall crop production for 2024, despite a marginal 0.2% decline in millet output. This announcement was made during a recent meeting in Abuja, led by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
The minister presented the findings alongside concerns over escalating production costs, which have significantly impacted key sectors. Maize production costs surged by 69.7%, while cowpea prices experienced an unprecedented 300% increase. These spikes have contributed to food crises in 31 states, with the North East particularly affected.
Edun emphasised the urgency of addressing these issues, noting that rising costs and food scarcity demand immediate intervention to ensure food security and economic stability.
In its presentation, the Central Bank of Nigeria (CBN) outlined measures to improve the foreign exchange (FX) market’s efficiency, including the launch of the Electronic Foreign Exchange Matching System (EFEMS). This system aims to enhance transparency and streamline market operations. Additionally, the CBN has phased out high-interest FX swaps and settled 80% of FX forward obligations, fostering liquidity and maintaining robust external reserves.
The EMT also reviewed agricultural performance, reporting modest improvements in mechanisation and farmland expansion. Tractor usage increased by 2%, while cultivated farmland grew by 2.3%. Despite these gains, challenges remain, with rising costs and food shortages posing significant hurdles.
Looking ahead to 2025, the EMT unveiled strategies to bolster food security, including the promotion of hybrid seed production, adoption of climate-smart practices, and support for export crops such as cocoa, sesame, and ginger. Plans also include improving rural infrastructure through cold chain facilities, feeder roads, and electrification projects.
“The progress made in both sectors is commendable,” Edun stated, urging stakeholders to intensify efforts towards economic stability and sustainable growth. He underscored the importance of coordinated policy implementation to advance President Bola Ahmed Tinubu’s Renewed Hope Agenda, which aims to ensure affordable food and better living conditions for Nigerians.
In a statement issued by Mohammed Manga, Director of Information and Public Relations at the Federal Ministry of Finance, he highlighted that the EMT’s dual focus on FX market stability and food security lays the groundwork for long-term prosperity. He expressed optimism that with continued collaboration and commitment, Nigeria can overcome its current challenges and achieve its economic aspirations.
