Scarcity of Fuel and Naira Set to Plunge Over 28 Million Nigerians into Crisis

A latest report by Cadre Harmonise has revealed that over 28.4 million Nigerians in 26 states and the Federal Capital Territory are expected to face severe crises between June and August this year due to the scarcity of fuel and naira.

This projection includes 18,000 Internally Displaced Persons (IDPs).

Cadre Harmonise is a tool developed as an early warning system to prevent and manage food and nutrition crises in Nigeria.

The report was released in Abuja on Thursday, covering 26 states in Nigeria. It was also stated that about 17.7 million people, including 14,000 IDPs in 26 states and the FCT, were already in crisis or worse by May 2023.

The report pointed out that the naira redesign was one of the major drivers of the crisis in Nigeria, as the withdrawal of old naira notes from circulation created a serious bottleneck to households’ ability to access cash and food commodities.

The prolonged scarcity of Petroleum Motor Spirit commonly called petrol, and the associated hike in the pump price of the commodity across the states led to an astronomical rise in transport fares and cost of food products in Nigerian markets.

The report also highlighted the consistent rise in the price of food commodities and agricultural inputs across Nigerian markets as a major driver of food insecurity. For instance, the consumer price index, which measures inflation, grew from 15.7 percent in February 2022 to 21.9 percent in February 2023 (that is a 39.49 percent point increase) year-on-year.

Insecurity, especially insurgency in the North-East states, particularly in Borno, Adamawa, and Yobe, was also identified as a persistent challenge in the report.

The Cadre Harmonise report was produced with technical and financial support from global, regional, and national partners including the United Nations Food and Agriculture Organisation, World Food Programme, Save the Children, UNICEF, Mercy Corps, among others.