In a $50 billion purported fraud case, Olam Group insists the corporation is not facing any charges.
Rather price rising across the country, has forced Olam Agri’s Nigerian affiliate to announced a temporary suspension of its purchases of sorghum and maize.
The company said in a statement that issues affecting the availability of these necessary grains across the nation include supply chain interruptions and skyrocketing pricing.
Olam Agri stressed how it continues to work with government agencies and other business associates to ease the burden on Nigerians’ food supply.
It stated, “As a major buyer and processor of food staples, we share the concerns about high prices and supply chain disruptions affecting the availability of essential grains”
“In response to these challenges, we are actively collaborating with industry peers and government agencies to identify and implement strategic solutions to alleviate any additional stress on food availability.
“As part of our proactive approach, Olam Agri in Nigeria has decided to temporarily suspend the procurement of essential grains such as maize and sorghum immediately which will allow us to closely monitor the market trends and adjust to market realities. This decision follows wide consultations with relevant authorities and is part of our commitment to managing the ongoing crisis”
The company further explained that it will continue to ensure an uninterrupted supply of food products to the public during this period.
Efforts to contact the company to confirm the report proved abortive.
Nigeria is currently facing a food security crisis with food inflation for January at 35.41% and major staple foods like rice, maize and other grains rising to an all-time high.
To find a temporary solution to the food security crisis, the federal government has decided to release grains from the national reserve as a measure to crash prices of the commodities.
The federal government has also mooted plans to set up commodity boards to strategically regulate food prices across the country and reduce hoarding. Plans to import food were outrightly ruled out by the President stating, “Nigeria can produce the food it needs”.
