The Arab Monetary Fund (AMF) says that since the recent floods have affected Agricultural productivity, food prices would likely worsen in 2023.
It also said the volatility and the value of Nigeria’s currency, the naira, and the government’s continued dependence on the Central Bank of Nigeria, financing its budget deficits could also contribute to higher food prices.
Nigeria is facing flooding in a decade, which has washed away thousands of hectares of farmland, killed over 600 people, and displaced more than a million more.
The country is already dealing with high inflation rates, which rose to 21.09% in October.
Economic experts argue that the food crisis will have a crippling effect on the economy.
“The Agricultural sector contributes a lot to our GDP if we have that, you know the Russian-Ukraine war also is a challenge to our GDP. You will agree with me that the State employs the largest population especially in the rural areas, which are unable to carry out farming because of the flooding, or due to insecurity”, an Economic expert said.
Economic experts say the government needs to act fast in supporting farmers who have been affected by floods. To go into dry season farming in order to cushion the effect of flooding and crash food prices.
“I expect that the government will, come up with a coordinated response with all the ministries and departments responsible for agricultural productivity. I expect that we should be looking forwards, to getting more improved seeds for our farmers”, an Economic expert added.
Nigeria’s government has, however, said that there is no need for panic, as several measures have been put in place to stall a food crisis.
It says it has distributed food aid to vulnerable and flawed victims, as well as early maturing Wheat, Rice Maize, Sorghum seeds, cassava cuttings, fertilizers, and other farming materials to affected farmers across the country.
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The federal government has also approved a national flawed emergency preparedness and response plan to help in preventing and managing flooding in the future.
