…prices of Cassava and Maize more than double
The International Monetary Fund has explained why food crisis in the country is assuming a very frightening dimension, saying that prices of cassava and maize in Nigeria are more than double despite the fact they are produced locally.
According to the organization, the country’s penchant for imported foods is one thing aggravating the problem. It however stated that the problem is not only limited to Nigeria, but it is the same situation in almost all the countries of Sub Saharan Africa.
The IMF in a new report titled, “Africa Food Prices Are Soaring Amid High Import Reliance,” stated that staple food prices in sub-Saharan Africa surged by an average 23.9 percent in 2020 to 22—the most since the 2008 global financial crisis.
It also stated that one other factor that is contributing to this problem is the depreciation of a country’s currency. It stated, “the relative strength of a country’s currency is another driver, as it affects the costs of imported food items. We find that a one percent depreciation in real effective exchange rates increases the price of highly imported staples by an average 0.3 percent.”
The Washington based institution also lamented that staple food prices in sub-Saharan Africa were also impacted by natural disasters and wars, rising by an average 4 percent in the wake of wars and 1.8 percent after natural disasters, depending on the magnitude, frequency, duration, and location of events.
“Over–reliance on imported foods is a major problem fuelling food crisis in Sub Saharan Region,” it stated.
According to the report, the increase was commensurate to an 8.5 percent rise in the cost of a typical food consumption basket (beyond generalised price increases).
