This year millions will be struggling to buy even the most basic foods for their families as the conflict in Ukraine has pushed food prices even higher than the troubling levels at the start of the year.
As the Muslim holy month of Ramadan begins, the soaring cost of food staples in import-dependent Middle Eastern and North African countries is creating ever greater challenges for millions of families already struggling to keep hunger at bay, the United Nations World Food Programme (WFP) said today.
Traditionally a month of festivities, when families gather over traditional foods to break their day-long fast, this year millions will be struggling to buy even the most basic foods for their families as the conflict in Ukraine has pushed food prices even higher than the troubling levels at the start of the year.
“We are extremely concerned about the millions of people in this region who are already struggling to access enough food because of a toxic combination of conflict, climate change and the economic aftermath of Covid-19,” said Corinne Fleischer, WFP Regional Director for the Middle East and North Africa. “People’s resilience is at a breaking point. This crisis is creating shock waves in the food markets that touch every home in this region. No one is spared.”
The knock-on effect of the Ukraine crisis is adding further strain to the import-dependent region. The prices of wheat flour and vegetable oil – two key staples in the diet of most families – have consequently risen across the region. Cooking oil is up 36 percent in Yemen and 39 percent in Syria. Wheat flour is up 47 percent in Lebanon, 15 percent in Libya and 14 percent in Palestine.
Even prior to the conflict in Ukraine, inflation and increasing prices were putting basic food items beyond the reach of the most vulnerable. Food prices reached an all-time high in February 2022, according to the UN Food and Agriculture Organization’s Food Price Index.
The cost of a basic food basket – the minimum food needs per family per month – registered an annual increase of 351 percent in Lebanon, the highest in the region. It was followed by Syria, with a 97 percent rise, and Yemen with 81 percent hike. The three countries, all reliant on food imports, also reported sharp currency depreciation. Meanwhile, a drought in Syria has also impacted the country’s annual wheat production.
With global prices rising, WFP’s meagre resources for operations in the region, especially in Yemen and Syria, will be under even more pressure than before. In both countries, conflict and the related economic shrinkage have left more than 29 million people in need of food assistance. WFP is supporting nearly 19 million people in the two countries.
The global food price hikes and the Ukraine conflict have resulted in WFP facing an additional cost of US$71 million per month for global operations compared to 2019 – a 50% rise.
“The Ukraine crisis makes a bad funding situation worse. There are immediate humanitarian needs that demand attention. Donors have in recent years helped us provide food to millions in the region. Now the situation is critical and it’s time to be even more generous,” added Fleischer.
WFP currently has only 24 percent of the funding it needs in Syria and 31 percent of what it needs in Yemen. Due to funding constraints, WFP has already been forced to reduce food rations in both countries. Further reductions risk pushing people towards starvation.
NLNG Boosts Cooking Gas Production to 1.5 Million Metric Tonnes Annually
Nigeria Liquefied Natural Gas Limited (NLNG) has announced a significant milestone in its operations, boosting its annual production of liquefied petroleum gas (LPG), commonly known as cooking gas, to over 1.5 million metric tonnes.
This surge in production underscores NLNG’s commitment to meeting the rising demand for clean cooking energy in Nigeria.
The entirety of NLNG’s 1.5 million tonnes production is now being sold domestically within Nigeria.
Moreover, the company has initiated a landmark shift by starting to supply LPG in naira, moving away from the traditional practice of trading in United States dollars.
This move aligns with calls from stakeholders in the oil and power sectors advocating for naira transactions, especially amidst the challenges posed by currency fluctuations.
During a panel session at the 7th Nigeria International Energy Summit in Abuja, NLNG’s General Manager of Finance, Fatima Adanan, highlighted the company’s dedication to enhancing LPG penetration across the country.
Adanan emphasized NLNG’s vision to make Nigeria a better place by promoting the use of cleaner energy sources like gas.
While NLNG’s production surge is commendable, Adanan acknowledged that Nigeria’s LPG requirements surpass the current output, necessitating imports to bridge the gap.
However, NLNG remains committed to expanding its production capacity to meet the nation’s energy needs and drive increased adoption of LPG as a cleaner cooking fuel.
CBN Raises Benchmark Interest Rate by 400 Basis Points to 22.75%
The Central Bank of Nigeria (CBN) has raised the benchmark interest rate by 400 basis points to a record 22.75%.
The decision made by the Monetary Policy Committee (MPC) comes amidst rising inflationary pressures and growing uncertainty in Africa’s largest economy.
Nigeria’s inflation rate rose to 29.90% in January 2024, the highest in over two decades while the nation’s unemployment rate quickened to 5% in the third quarter of 2023. Suggesting that the rising costs have continued to drag on both new job creation and the existing ones.
This coupled with a series of policy adjustments implemented by President Bola Ahmed Tinubu has plunged economic productivity and eroded consumer spending as citizens grapple with high fuel prices, electricity tariffs, a record-high foreign exchange rate, and insecurities.
Therefore, it is surprising that the Monetary Policy Committee (MPC) led by the CBN will further increase borrowing costs by 400 basis points at a time when job creation is paramount.
While the economy reportedly grew by 3.46% in the fourth quarter (Q4) of 2023 on the back of robust performance of the services sector, this growth is yet to crystalise as businesses and citizens have taken to the street protest against the harsh economic situation.
Economic experts have started questioning the data from the National Bureau of Statistics (NBS) given its lack of correlation between the data and economic reality.
President Tinubu Unveils Geometric Power Plant in Aba After 20-Year Wait
After two decades of anticipation, President Bola Tinubu, through his representative Vice President Kashim Shettima, inaugurated the long-awaited Geometric Power Plant in Aba, a significant milestone in the city’s quest for reliable electricity supply.
The event, which also saw the commissioning of three rehabilitated roads by Abia State Governor Alex Otti, symbolizes the culmination of years of perseverance and determination to transform Aba’s power landscape.
Addressing the audience, Vice President Shettima hailed the project as a testament to the power of visionary leadership and unwavering commitment to progress.
He said the Geometric Power Plant exemplifies the transformative impact of strategic infrastructure investments on local communities.
Governor Otti echoed similar sentiments, emphasizing the importance of the power project in positioning Aba as a hub for national and international business ventures.
He commended the efforts of Geometric Power Limited while urging them to uphold transparency and avoid exploiting consumers.
The inauguration of the Geometric Power Plant comes amidst growing concerns over Nigeria’s power infrastructure and the need for sustainable solutions to address electricity shortages.
The project, with a capacity of 188MW, holds promise for significant improvements in power supply across Abia State, benefitting nine out of seventeen local government areas.
The Managing Director of Geometric Power Limited, Ben Caven, underscored the scale of investment involved, totaling $800 million.
He highlighted the comprehensive nature of the project, which includes the installation of new power substations and a 27km natural gas pipeline, signaling a comprehensive approach to enhancing Aba’s energy infrastructure.
In conclusion, the inauguration of the Geometric Power Plant represents a transformative moment for Aba, offering renewed hope for economic growth and prosperity powered by reliable electricity supply.
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