Economists Urge Cheaper Food Production, Energy and Credit to Improve Living Standards

 

By Atlantic Reports

Two economists have urged the Federal Government to prioritise agriculture, affordable energy and business financing, saying reported macroeconomic gains must translate into lower costs and improved living standards.

Prof. Ken Ife and Mr Eze Ubiji, speaking in separate interviews in Lagos on Sunday, called for measures to reduce food losses, improve transport infrastructure and help businesses finance production.

Ife, President of the Institute of Professional Economist and Policy Management, acknowledged what he described as significant macroeconomic reform successes, but said households were yet to experience corresponding improvements.

“However, the gains from the economic reforms are yet to reflect in our living standards,” he said.

Food Preservation and Transport

Ife argued that Nigeria’s agricultural potential was being undermined by inadequate mechanisation, poor farming practices and limited infrastructure for preserving and distributing produce.

He identified cassava, yam, plantain and cocoyam among crops affected by losses before reaching consumers.

According to him, Nigeria produces more than 200 million metric tonnes of food, with over half lost after harvest. He also estimated that rail accounted for about five per cent of agricultural produce movement.

The interview account did not provide sources, reference periods or definitions for those estimates.

Ife nevertheless maintained that better storage, handling and transport would help reduce waste and improve food availability. He called for expanded rail services to ease dependence on road haulage and lower distribution costs.

Energy Costs Put Pressure on Manufacturers

Ife also identified diesel costs as a constraint on domestic production, particularly for manufacturers of fast-moving consumer goods.

He said high energy and operating expenses weakened businesses’ ability to produce affordable goods, with consequences for household purchasing power.

The economist proposed using increased crude oil earnings to repay approximately $3.3 billion in loans associated with the African Export-Import Bank, arguing that this could create room for more favourable crude supply arrangements for local refineries.

“Then the government is free to supply adequate crude to local refineries at a more subsidised rate to ameliorate the cost of domestic production and check the economic hardship,” he said.

That recommendation was not accompanied by a financing assessment or an explanation of how the relevant loan obligations would affect refinery supply. Lower refinery input costs would also need to translate into lower prices for businesses and consumers to deliver the intended relief.

Small Businesses Seek Affordable Credit

Ubiji, Executive Secretary of the National Association of Small and Medium Enterprises (NASME), said affordable financing was essential for businesses struggling with operating costs.

He urged the government to provide credit with longer repayment grace periods, giving enterprises time to stabilise and invest before repayments became due.

“Considering that most SMEs have been grappling with the economic hardship caused by government reforms, affordable financing is essential,” he said.

Ubiji also called for reliable and affordable electricity in small-business clusters, arguing that improvements would lower production costs and strengthen the sector’s contribution to employment and economic growth.

“Government should ensure electricity is more available and affordable in most SME clusters across the country,” he said.

Turning Reform into Household Gains

The recommendations follow President Bola Tinubu’s declaration in his Independence Anniversary address that Nigeria was moving from economic reform towards prosperity.

The President said his administration had made difficult choices and laid foundations for lasting growth.

Ife and Ubiji’s proposals focus on how such gains could reach everyday economic activity: food arriving at markets with less waste, manufacturers spending less on energy, and small businesses accessing finance they can afford to repay.

Their central argument is that improved economic indicators must be matched by stronger productive capacity and tangible improvements in what households can buy.

Atlantic Reports: Voices. People. Facts.