The World Bank has stated that the rise in the price of food could force additional six million Nigerians into poverty — calling on the government’s attention for short-term policies to support welfare.
This was contained the World Bank latest report titled ‘COVID-19 in Nigeria: Frontline Data and Pathways for Policy’.
The World Bank had stated in June that an estimated 7 million Nigerians were pushed into poverty in 2020 as a result of rising prices alone — without considering the direct impacts of COVID-19.
Using the Nigeria COVID-19 National Longitudinal Phone Survey (NLPS), the report takes a look at the effect of the COVID-19 crisis on human capital, livelihoods, and welfare of Nigerian households.
The NLPS marks a successful cooperation between Nigeria’s National Bureau of Statistics (NBS) and the data production and methods team at the World Bank.
The World Bank lamented that the effects of the COVID-19 pandemic have brought Nigerian households’ food security under threat.
“The rise in prices witnessed between June 2020 and June 2021 alone could push another six million Nigerians into poverty, with urban areas being disproportionately affected. This underscores the need for short-term policies to support welfare,” the report reads.
“The simple simulations suggest that the share of Nigerians living below the national poverty line could have increased from 40.1 percent to 42.8 percent due to the food price inflation witnessed between June 2020 and June 2021.
“This means about 5.6 million additional Nigerians would be living in poverty. While food price inflation would decrease purchasing power and raise poverty across Nigeria, it appears that urban areas could be disproportionately affected.
“In 2018/19, about 16 percent of poor Nigerians were urban dwellers. Yet among those who would be newly impoverished by the increase in food prices between June 2020 and June 2021, around 27 percent would be from urban areas.
“Nevertheless, poverty in Nigeria is set to remain a primarily rural phenomenon, with or without rising food prices.”
The report stated that reach of social protection initiatives was low throughout the COVID-19 crisis.
It noted that between March 2020 and March 2021, only four percent of Nigerian households got support cash support from the federal, state, or local government.
The World Bank stated that this was significantly lower than what would be required to prevent the widening and increase in poverty brought about by the crisis.
The report also noted that despite many schools have reopening across Nigeria, learning that was lost during the COVID-19 crisis still needs to be recouped — and some children have not returned to school.
Commenting on the report, the World Bank country Director for Nigeria, Shubham Chaudhuri, stated that: “The COVID-19 crisis has provided a wake-up call to address the long-standing structural challenges that could constrain the government’s ambition to lift 100 million Nigerians out of poverty.”
“There is no time like the present for the country to prepare for future climate and conflict shocks and seize the promise of its young population to lay strong foundations for inclusive growth.
The report recommended three immediate priorities that could offer the bedrock for recovery.
“First, rolling out vaccines quickly and equitably should reduce the direct health threat posed by the virus,” the report reads.
“Second, it will be essential to help children remediate the learning losses incurred during the pandemic – by getting them back to school or by finding low-tech remote solutions that work for the poor where this is not possible.
“Third, expanding social protection could provide short-term relief for the welfare losses Nigerian households are currently facing.”
