3 problems.
1.local food costs will rise;
2. local food supply is inadequate; and
3. monetary policies alone cannot fix this.
Success? not quite
Again, bans and tariffs only work when local supply can meet local demand.
1. Give the local food companies a 90% rebate on cost of generated power. According to the Nigerian Labor Congress, “Between 30% and 35% of manufacturing costs are energy-related expenses”.
3. Give manufacturers direct allocation of diesel from NNPC based on food prices falling.
4. Deploy gas flaring fees to fix rural roads.
etc etc etc
If NNPC sells diesel to food processors in Nigeria at N20 a litre, it becomes harder for importers to bring in tomatoes grown in China, shipping, insurance paid & locally transport paid and beat local prices.
Once costs fall, and productivity rises at Nigerian based food processors, local food will be more available and food inflation will reduce.
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