The Drivers and Impacts of Inflation on Fish Production in Nigeria

Abstract

Generally, inflation has been a major issue in recent times, with reports that inflation in several developing nations, like Nigeria, has reached levels not seen in the last 30-40 years. Fish farmers in Nigeria are contending with rapidly increasing prices for most inputs, such as feed, water supply, energy, and labour. The continual increase in the cost of fish farm inputs has huge implications for fish production. As a result, the purpose of this text is to provide an overall discussion on the trends of inflation as they affect key actors in the fisheries sub-sector, its major drivers and its impact on fish production in Nigeria and then recommend the best possible ways to manage these drivers. With rising production expenses, many fish farmers have resorted to passing these costs on to customers. The challenges of transferring cost increments on to consumers cause difficulties for fish producers, as rising prices of fish tend to reduce the quantity of fish demanded and the envisaged profit margin. Because of Nigeria's economic realities, stagflation (high inflation combined with sluggish demand) cannot be assured. Terrorism, farmers/herders conflict, banditry/kidnapping, the advent of corona virus (COVID 19), high exchange rate, poor government policies such as banning importation, high tax rates, poor infrastructure, an increase in cybercrime rate “yahoo yahoo”, climate change and rapid population growth are identified as some of the drivers of inflation in Nigeria’s fisheries sub-sector. The impact of inflation on fish production in Nigeria includes the following: high cost of fish feed (exacerbated by competition for ingredients among fish farmers, other farm animal operators, and human consumption), high cost of fish culturing facilities and other inputs, increase in unit price of table size fish (leading to nutritional deficiency, particularly for low income earners), reduction in demand for fish products, obnoxious feeding practices such as feeding fish with expired and contaminated feed, poor growth rates, prolonged culture duration, production of malnourished broodstock resulting in poor quality and slow growing offspring, and moribund farms. What can fish farmers do in Nigeria, where inflation is on the rise? This text recommends a thorough reevaluation of the business plans of fish farms, with a focus on cash flow in the short term, the use of lean management technology, and the utilization of other fish farming techniques such as intensification of culture-based fisheries, use of non-conventional feed resources, polyculture, and aggressive integration of fish culture. More importantly, government policies that promote robust and viable economies are required. Strong economies have stable, moderate growth, low unemployment and efficient supply chains, which allow aquaculture enterprises to thrive.