The International Monetary Fund has warned Nigerians to prepare for higher food prices/risks in 2023 as a result of recent flooding and high fertilizer costs.Information Guide Nigeria
According to the National Bureau of Statistics, food inflation reached 23.72 percent annually in October 2022, with particular food categories experiencing inflation rates between 50 and 100 percent.
Despite this, the IMF has predicted that food prices will increase in 2023 due to the impact of recent floods on agricultural productivity.JAMB portal
The report said that the volatility of the naira’s value, the Federal Government’s continuous reliance on the Central Bank of Nigeria to finance its budget deficit, and climate change were all risk factors.
This was reported by the Washington-based lender in its ‘Nigeria: Staff Concluding Statement of the 2022 Article IV Mission’ report reviewed by our weekend correspondent.
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It said, “The effects of recent flooding and high fertilizer prices could become more entrenched impacting negatively both agricultural production and food prices in 2023.
“Similarly, further volatility in the parallel market exchange rate and continued dependence on central bank financing of the budget deficit could exacerbate price pressures. In the medium term, there are downside risks to the oil sector from possible price and production volatility, while climate-related natural disasters pose downside risks to agriculture.”
Despite Nigeria’s limited direct exposures, the crisis in Ukraine was harming the country through increasing local food costs, according to the report. According to the IMF, severe food insecurity exacerbated the pandemic’s impact on Nigeria’s vulnerable population.NYSC portal
It was predicted that the nation’s headline inflation should moderate by the end of 2022 as a result of the beginning of the harvest season. However, it also anticipated an increase in rice prices due to recent flooding.
The IMF further stated that over the next 10 years, the nation would have to create about 25 million additional jobs. It said, “Strengthening the performance of the agricultural sector is key to job creation, food security, and social cohesion.
“Over the next decade, an estimated 25 million additional jobs will be needed to employ the new labor market entrants. For agriculture to continue playing a strong role in employment and ensure food security, boosting production and yields through improved input usage, especially through affordable fertilizers and higher quality seeds, better storage facilities and more coordinated policy support across government agencies are recommended.”
The NBS stated on Thursday that 133 million Nigerians were multidimensionally poor, with a large number of them lacking access to food security, healthcare, and education.JAMB Result
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