President Muhammadu Buhari has stated that Nigeria will tap its strategic grain reserves to rein in food prices, as Africa’s biggest economy faces its worst economic crisis in decades fuelled by a collapse in crude oil prices.
Annual inflation in the continent’s top oil exporter rose to a near four-year high of 12.8 per cent in March from 11.4 per cent in February, driven by a rise in food prices.
“President Buhari has ordered the release of 10,000 tons of grain from the National Strategic Grains Reserve to check food price increases,” Reuters quoted the president’s office to have said in a tweet.
The army has in recent month’s regained territory lost to the group, which has been waging a seven-year insurgency in the northeast, but most displaced people have been reluctant to return home given the volatile security situation.
A slump in oil revenue, which makes up 70 per cent of Nigeria’s state income, has dried up hard currency supplies needed to fund food and other vital imports.