Import Restrictions, Exchange Rate drive Nigeria’s Food Inflation – World Bank
The World Bank has attributed food inflation in Nigeria to import restrictions and non-flexible exchange rate management of the Central Bank of Nigeria (CBN).
The world lender also revealed that the COVID-19 pandemic-induced inflation pushed about 23 million Nigerians into a food crisis in 2021.
The bank disclosed this in its latest Commodity Markets Outlook about the Global Report on food crises.
The report showed that rising food prices have heightened food insecurity in emerging markets and developing economies, especially due to food import dependence from Ukraine and Russia.
According to the report, the war in Ukraine and the COVID-19 pandemic triggered food insecurity across the world.
Referencing the global report on food crises, the World Bank report stated:
“According to the Global Report on Food Crises, an estimated 161 million people were facing a food crisis or worse in 2021, up from 147 million in 2020.
“The populations facing a crisis, which are typically in countries with conflict, include the Democratic Republic of Congo (26 million), Afghanistan (23 million), Nigeria (23 million), Ethiopia (16 million), and Yemen (16 million).
“Rising food prices have increased food insecurity in most Emerging Markets and Developing Economies (EMDEs).
“It could increase even more, given the reliance of several EMDEs on food imports from Ukraine and Russia.
“Even before the Ukraine war, the pandemic had already taken a toll on food insecurity.”
Furthermore, the report revealed that the war-driven disruptions in food trade, higher food price inflation, and higher costs of administering food assistance efforts, would likely make more people food insecure.
Meanwhile, the International Monetary Fund (IMF) had said the impact of the war in Ukraine would likely sustain pressure on food prices in Nigeria and other countries until 2023.
Source: Agro Nigeria
