As food inflation continues an upward trajectory, the federal has hinted at its plan to quickly convene a meeting of the National Food Security Council to explore ways to check the trend.
The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, disclosed this after Wednesday’s meeting of the Federal Executive Council (FEC) presided over by Vice President Yemi Osinbajo at the Presidential Villa, Abuja.
Briefing correspondents on the outcome of the meeting, she said the council gave the approval for the meeting to hold “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 revealed that FEC had been briefed on the rising inflation rate and the need to manage the impact on the economy.
The minister said the council considered a report from the ministry of finance, budget and national planning for the first quarter of 2022 GDP report which shows that the Nigerian economy has grown by 3.1% in the first quarter of 2022 as against a growth of 0.5% in the first quarter of last year.
She stated: “This growth shows gradual economic stability from the recession that we witnessed in 2020. And also it shows the six quarters of positive growth that the Nigerian economy has presented.
“So, of the 46 economic activities, the bulk sector performance shows that services sector grew strongly by 4.7%, agriculture also grew by 3.61%, Industry on the other hand contracted by minus 6.81%. and there’s also a significant contraction in the crude oil, petroleum and natural gas sector of 26.04%.
“Coal mining sector also declined oil refinery the biggest contraction of 44.26%. the electricity sector, textile outcome. 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, this growth that is positive will not be directly felt by the people.”
Continuing, Ahmed said: “We also reported to Council that inflation has started going upward to the extent that the monetary authorities of the Central Bank have had to adjust the Monetary Policy Rate (MPR) to 13% at the last Monetary Policy Committee (MPC) meeting and that’s an attempt to manage the cost of inflation.
“So, Council has decided to set up a special effort to look at the sectors that are not growing and also to look at how we can grow the other sectors better.”
The Council approved contracts for the ministries of Petroleum Resources, Power and Police Affairs with a total worth of about 23.52 billion.
The sum is for various projects across the states of the federation.
The ministers of the respective ministries spoke to correspondents after the meeting.
The Minister of State for Petroleum Resources, Timipre Sylva, said the council approved N3.81 billion for a switch-gear room for the Nigerian Oil and Gas Park in Bayelsa State for the local manufacture of components.
He noted that the Council also approved N11 billion for the construction of access roads and bridges to Brass Local Government Area of Bayelsa State.
According to him, consultations have begun for the Nigeria National Petroleum Company to execute a Memorandum of Understanding with the Economic Community of West African States to construct the Nigeria-Morocco gas pipeline.
If implemented, the pipeline would be the world’s longest offshore pipeline and second-largest pipeline in the world carrying gas from Nigeria to Morocco and running through at least 11 West African countries, to Spain in Europe.
Speaking, the Minister of Police Affairs, Mohammed Dingyadi, said the Council approved a total of N8.32 billion for various several projects under the ministry.
They are the procurement of 82 Toyota Operational Vehicles for the Police Trust Fund at N2.2 billion, customized police raincoats for N1.9 billion, customized boots for N576 million, micro kits at N10 billion, curricular materials for police colleges at N664 million and medical equipment for police health facilities for N2 billion.
In his remark, the Minister of Power, Abubakar Aliyu, said the Council approved $968,818 (N402,204,792.70) and N7,393,000 for (the offshore and onshore components, respectively) for the supply and installation of 330kva and 132kva transmission line for ongoing rehabilitation works in Lagos.
He added that the council approved a variation on a subsisting contract for a substation in Katsina and a line base in Kumbotso in Kano.
According to him, the variation sum is only on the onshore component of the contract due to the rise in the prices of construction materials.
“The onshore which was N939,410,664 has now moved to N1,938,737,307.12. And the Council graciously approved,” Aliyu said.
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