Hardship: IMF proffers solution to Nigeria’s food crisis

The International Monetary Fund (IMF) has called for quick action to remedy food insecurity in Nigeria, stressing that addressing food insecurity in the country should be an immediate priority for the President Bola Tinubu-led Nigerian government.

The international money lender said this in its End-of-Mission statement issued after the completion of the IMF Staff 2024 Article IV Mission to Nigeria, a copy of which was obtained by journalists in Abuja on Tuesday

The end-of-mission statement includes statements by IMF staff teams that convey preliminary findings after a visit to a country

The IMF said that the Tinubu government inherited a difficult economic situation marked by low growth, low revenue collection, accelerating inflation, and external imbalances built up over the years.

The News Agency of Nigeria quoted the IMF as saying that “Addressing food insecurity is the immediate priority. The recent approval of a well-targeted and effective social protection system is an important step towards addressing food insecurity in Nigeria and its implementation will be crucial.”

The Fund said that the decision by the Monetary Policy Committee to further tighten monetary policy would help contain inflation and pressures on the naira.

According to the statement, an IMF team, led by Axel Schimmelpfennig, IMF mission chief for Nigeria, visited Lagos and Abuja from February 12 to February 23, 2024, to hold discussions for the 2024 Article IV Consultations with Nigeria.

The IMF said the team met with the Minister of Finance and Coordinating Minister of the Economy of Nigeria, Wale Edun, and the Governor of the Central Bank of Nigeria, Olayemi Cardoso.

Others were senior government and CBN officials, the Ministries of Agriculture and Environment, as well as representatives from sub-nationals, the private sector and civil society organisations.

The statement further noted that at the end of the visit, Mr Schimmelpfennig said that “Nigeria’s economic outlook is challenging. Economic growth strengthened in the fourth quarter, with gross domestic product growth reaching 2.8 per cent in 2023. This falls slightly short of population growth dynamics.

”Improved oil production and an expected better harvest in the second half of the year are positive for 2024 GDP growth, which is projected to reach 3.2 per cent, although high inflation, naira weakness, and policy tightening will provide headwinds.

“With about eight percent of Nigerians deemed food insecure, addressing rising food insecurity is the immediate policy priority. In this regard, staff welcomed the authorities’ approval of an effective and well-targeted social protection system.

“The team also welcomed the government’s release of grains, seeds, and fertiliser, as well as Nigeria’s introduction of dry-season farming.”

Schimmelpfennig said that the recent improvements in revenue collection and oil production were encouraging.

According to Schimmelpfennig, Nigeria’s low revenue mobilisation constrains the government’s ability to respond to shocks and to promote long-term development.

Schimmelpfennig said that  “Non-oil revenue collection improved by 0.8 per cent of GDP in 2023, helped by naira depreciation. Oil production reached 1.65 million barrels per day in January as a result of enhanced security.”

Schimmelpfennig added that the capping of fuel pump prices and electricity tariffs below cost recovery could have a fiscal cost of up to three per cent of GDP in 2024.

He said that the recently approved targeted social safety net programme that will provide cash transfers to vulnerable household

Meanwhile, Operatives of the Maiduguri Zonal Command of  Economic and Financial Crimes Commission (EFCC), has arrested 21 trucks loaded with food and non-food items heading toward N’djamena, Chad Republic, Central African Republic and Cameroon.

Its Spokesperson, Dele Oyewale, said this in a statement on Tuesday in Abuja.

According to him, the trucks were intercepted in a sting operation at major exit routes along Kalabiri/Gamboru Ngala and Bama roads, Borno.

“Investigation showed food items cleverly concealed in the trucks that would have gone undetected but for the eagle-eyed vigilance of operatives of the commission.

“Further checks showed  the Waybills covering the goods carried by the trucks indicated their destinations as N’djamena, Chad Republic, Central Africa Republic and Cameroon respectively.

“The arrest of the trucks is expected to stem the tide of food insecurity occasioned by unscrupulous antics of smugglers across the country,” he said.

He said  the suspects arrested with the trucks are being profiled and would be charged to court as soon as investigations are concluded.(NAN)