Famine Early Warning Systems Network

As mensagens-chave

• Despite recent increases in foreign reserves and direct intervention by the Government of Nigeria (GoN), the exchange rate gap between official and parallel rates remains. Structural challenges in the economy persists and continue to drive higher prices of both imported foods as well as local substitutes.

• The Government of Nigeria direct support to agricultural production financing (Anchor Borrowers program) is yielding intended results through expansion in area cultivated as well as increased yield. If this is sustained, availability and access to food will improve at both household and markets levels in the coming lean season as the availability of imports are constrained by a lack of forex as well as policy measures to curb imports.

• Despite the anticipated increase supplies, high transaction and transportation costs remained a great concern in Nigeria. The proposed “grain by rail” may not achieve much considering the collapsed state of rail system in the country. Local Prices are expected to remain at very elevated levels in the medium term, resulting in atypical trade flow patterns (within the country and between Nigeria and the broader region).

• Though there are some improvements in the security situation in North East of Nigeria, trade flows with other parts of the country remained impacted as commodities previously sourced from the North East to South West and South East markets are now mostly procured from markets in the North Central and North West states.