In a concerning development for West Africa, a new report indicates that the region, including Nigeria, is set to experience significant increases in the prices of essential food items such as rice, maize, and millet in 2024.
This grim projection stems from the findings of the “West Africa Regional Supply and Market Outlook,” an exhaustive examination spearheaded by the Food and Agricultural Organization (FAO), in collaboration with the World Food Program (WFP) and other pertinent bodies.
Staple prices currently remain above the five-year average across the region.
The report attributes this impending price hike to several factors, including decrease in agricultural production, trade constraints, and various global geopolitical influences. Consequently, staple food costs are anticipated to exceed the preceding five-year average.
Highlighting the severity of the situation, the report notes, “Staple prices currently remain above the five-year average across the region”. This is due to a mix of factors like production shortfalls, trade barriers, unrest in the Sahel region, high global prices, substantial transaction costs, and currency devaluation in the Gulf of Guinea’s coastal nations.”
Nigeria faces a sharp Increase in food prices
Nigeria, in particular, is poised for a steep rise in food prices. This increase is partly driven by the country’s growing annual inflation, which was worsened by the removal of fuel subsidies. Factors such as limited production capacity, ongoing demand, trade restrictions, security issues, and socio-economic challenges further contribute to this trend.
The report explicitly mentions, “Nigeria’s annual inflation continues to escalate, worsened by the elimination of fuel subsidies. Prices are expected to remain high due to restricted production, consistent demand, limited humanitarian aid, ongoing trade disruptions, and security and socio-economic difficulties in the region.”
Another critical concern highlighted in the report is the projected 42 percent decrease in the production of coarse grains like maize, sorghum, and millet. This decline is attributed to agroclimatic challenges, increasing insecurity, and rising production costs.
Conversely, rice production is expected to increase, accompanied by a decrease in imports, largely because of global trade restrictions, higher shipping costs, lower national exchange rates, and domestic policies.
On a positive note, the report sheds light on the robust production outlooks for roots and tubers like cassava and yam, as well as cash crops, thanks to the strong performance of major producers in coastal countries.
