Food Prices are rising – Finance Minister replies Presidency

Finance minister swears in securities tribunal chairman

The Minister of Finance, Budget and National Planning, Zainab Ahmed, has countered the claim by the presidency concerning the increase in food prices.

Daily Times had reported that the presidency through Garba Shehu,  had said that prices of food were on the decline.

Shehu, made this assurance while speaking in a programme on Channels TV, Friday, September 11.

While speaking on the recent directive President Buhari issued to the Central Bank of Nigeria to henceforth stop the release of forex for food and fertilizer importation, Shehu said Rice that had been ₦25,000 is now ₦20,000

But Ahmed, answering questions on the Nigerian Television Authority’s programme: ‘Good Morning Nigeria,’ said that food prices are on the increase.

READ ALSO: Buhari, Governors meet over increase in food prices

She said: “It’s true that food prices are going up and as I said earlier on, sensible subsidy is the one that is done on production, not on consumption because when you use gasoline in your car, you burn it and you’ve to put it in your car again and burn it.

“But if you now change the regime and say any truck that carries food or produce, the diesel price is subsidised, you’re subsidising production because it means food items get to the market cheaper, but as long as you’re subsidising consumption, whether it’s fuel or electricity, there’ll always be the propensity for gain in the system and then there’s always the fact that you’re subsiding everybody and it’s not everybody that needs it.”

“What we’ve been doing is not sustainable. If we bring back fuel subsidies, we will fail because we will not be able to pay it and the problem of disputes with marketers will come back, then we’ll have queues again.

”We just cannot afford it and therefore this deregulation must be made to work,” she said.

About the author

Goodness Nwogwugwu

Leave a Comment