Flooding: IMF Predicts Food Shortage in Nigeria in 2023

The International Monetary Fund (IMF) once again warned Nigeria of a potential food crisis in 2023 if the government failed to have a contingent plan.

According to the Washington-based financial institution, the food crisis would result from the recent flooding that eroded across key food-producing states and the rising price of fertilizer.

This, the Fund said would lead to high food prices in 2023 and further drag on consumer spending already battered by a high inflation rate and low wage growth.

 “The effects of recent flooding and high fertilizer prices could become more entrenched impacting negatively both agricultural production and food prices in 2023,” the Fund stated. 

In addition, IMF noted that the nation’s wide exchange rate, the high volatility in the parallel market and the Government’s continued dependence on the Central Bank of Nigeria for budget financing are like to contribute to higher prices.

“Similarly, further volatility in the parallel market exchange rate and continued dependence on central bank financing of the budget deficit could exacerbate price pressures,” IMF noted.

However, the International financial institution revealed that headline inflation will moderate by the end of 2022 due to the start of the harvest season. Nonetheless, the harvest season will not impact the price of rice because of the recent flooding which has damaged many farmlands. 

Going forward, IMF asserted that Nigeria needs to create about 25 million additional jobs in the next 10 years. It also identifies agriculture as a key sector in the drive to create jobs, food security, and social cohesion. 

Meanwhile, a recent report by the National Bureau of Statistics (NBS) has estimated that 133 million Nigerians were multidimensionally poor. 

The report which was released last Thursday used four indicators of food security, healthcare, education, and work. 

A closer look at the reports shows that the North accounted for 65 percent or 86 million poor Nigerians while 35 percent or about 47 million people living in poverty reside in the South.