IMF Warns Against Increasing Food Prices In Nigeria

IMF Warns Against Increasing Food Prices In Nigeria

The International Monetary Fund (IMF), has warned Nigeria against increasing food prices that are as a result of the ongoing war between Russia and Ukraine.

According to IMF, there would be unrest in Nigeria, other Sub-Saharan African countries, Latin America, the Caucasus, and Central Asia, should food prices continue to soar.

In a blog post titled ‘How War in Ukraine Is Reverberating Across World’s Regions’, the financial institution stated that in view of the ongoing realities, food insecurity is likely to increase in parts of Africa and the Middle East.

The post read: “Steeper price increases for food and fuel may spur a greater risk of unrest in some regions, from Sub-Saharan Africa and Latin America to the Caucasus and Central Asia, while food insecurity is likely to further increase in parts of Africa and the Middle East.”

“Just as the continent was gradually recovering from the pandemic, this crisis threatens that progress.

“Many countries in the region are particularly vulnerable to the war’s effects, specifically because of higher energy and food prices, reduced tourism, and potential difficulty accessing international capital markets.

“The conflict comes when most countries have minimal policy space to counter the effects of the shock. This is likely to intensify socio-economic pressures, public debt vulnerability, and scarring from the pandemic that was already confronting millions of households and businesses.

“Record wheat prices are particularly concerning for a region that imports around 85% of its supplies, one-third of which comes from Russia or Ukraine.”

Meanwhile, the African richest man Aliko Dangote recently sought food security in Nigeria, as he predicted that the country would soon experience scarcity.

According to the President of Dangote Industries, in a matter of three months from now, Nigerians would start to experience food scarcity as the adverse consequence of the Russian-Ukraine war.

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