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Report: Bad roads, multiple taxes, hindering food transportation in Nigeria

Report: Bad roads, multiple taxes, hindering food transportation in Nigeria
January 11
21:13 2021

A new report by SBM Intelligence, Nigeria’s geopolitical intelligence platform, says food transportation in the country is hindered by bad roads, multiple taxes and harassment by security operatives.

The report published in January is based on information received from farmers and food transporters in seven states including Lagos, Ogun, Oyo, Nasarawa, Osun, Katsina, and Benue.

According to the report, farmers have poor access to markets thereby making it difficult to sell harvested products and promote food security in the country.

With 53.3 per cent, bad road ranks top as the major challenge of food transporter while multiple taxes and harassment come second and third with 25 per cent and 21.7 per cent respectively.

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“Transporters share similar concerns with farmers with access to market and bad roads making up the most common challenges faced, followed by multiple taxation and harassment,” the report reads.

It noted that food transporters “want the government to fix access roads and provide adequate transportation that is cheap, effective and efficient”.

The report added that an efficient rail system will reduce the cost of transporting farm produce to the markets and improve food security.

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“Security remains paramount followed by access to land and irrigation infrastructure. Some of the other factors mentioned were financing and the availability of a sizeable storage where most of their farm products can be stored,” it reads.

“Away from the government, there are business opportunities for investors who would like to take up a dual role of solving the problem of food insecurity and generating profit.

“In addition to these, transporters want some of their unique concerns met, like better roads, as well as put an end to multiple taxation and harassment by officials.

“Apart from good road networks and enhanced security addressed above, they want the multiple taxes paid while transporting goods between states to be stopped or at least reduced. They also want the number of checkpoints on the road to be reduced, so as to stop harassment by security officials and local government officials.”

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Nigeria’s inflation rate has continued to accelerate hitting 14.89 per cent year-on-year in November 2020 — the highest level since January 2018 at 15.13 per cent. Food inflation also surged by 18.30 per cent — the highest since January 2018.

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