Nigeria’s food crisis is likely to worsen with further shrinking of the value of the Nigerian naira and currencies of most developing economies.
This has driven up food and fuel prices in ways that could deepen the food and energy crises that many of the countries already face, according to the World Bank’s latest Commodity Markets Outlook report.
In US dollar terms, the prices of most commodities have declined from their recent peaks amid concerns of an impending global recession, the report stated.
It further noted that from the Russian invasion of Ukraine in February 2022, through the end of last October, the price of Brent crude oil in US dollars fell nearly six percent.
Yet, because of currency depreciations, almost 60 per cent of oil-importing emerging market and developing economies saw an increase in domestic-currency oil prices during this period.
The World Bank said nearly 90 per cent of these economies also saw a larger increase in wheat prices in local-currency terms compared to the rise in U.S. dollars.
It said elevated prices of energy commodities that served as inputs to agricultural production have been driving up food prices.
During the first three quarters of 2022, studies by the World Bank Group showed that food-price inflation in South Asia averaged more than 20 per cent. Food price inflation in other regions, including Latin America and the Caribbean, the Middle East and North Africa, Sub-Saharan Africa, and Eastern Europe and Central Asia, averaged between 12 and 15 per cent.