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Rising Food Prices Could Push 6m more Nigerians into poverty- World Bank

The rising food prices could push an additional six million Nigerians into poverty, the World Bank has said.

The apex financial institution disclosed this in its latest report titled ‘COVID-19 in Nigeria: Frontline Data and Pathways for Policy’, while also calling on the government to institute short-term policies to support the welfare of citizens.

The report stated that about seven million Nigerians were pushed into poverty in 2020 due to rising prices alone — aside from the direct impact of the COVID-19 pandemic.

According to the report, the effects of the COVID-19 pandemic have brought Nigerian households’ food security under threat while the prevalent food inflation has increased the percentage of Nigerians living below the national poverty line.

Also, the report stated that a good number of urban dwellers will become victims of food inflation-induced poverty.

“The rise in prices witnessed between June 2020 and June 2021 alone could push another six million Nigerians into poverty, with urban areas being disproportionately affected. This underscores the need for short-term policies to support welfare.

“The simple simulations suggest that the share of Nigerians living below the national poverty line could have increased from 40.1 per cent to 42.8 per cent due to the food price inflation witnessed between June 2020 and June 2021.

“This means about 5.6 million additional Nigerians would be living in poverty. While food price inflation would decrease purchasing power and raise poverty across Nigeria, it appears that urban areas could be disproportionately affected.

“In 2018/19, about 16 per cent of poor Nigerians were urban dwellers. Yet among those who would be newly impoverished by the increase in food prices between June 2020 and June 2021, around 27 per cent would be from urban areas.

“Nevertheless, poverty in Nigeria is set to remain a primarily rural phenomenon, with or without rising food prices,” the report read in part.

Speaking on the findings of the report, World Bank Country Director for Nigeria, Shubham Chaudhuri, noted that the global pandemic has acted as a pointer to long-standing structural challenges which could impede the government’s efforts to lift Nigerians out of poverty.

He advised that adequate preparation for future structural shocks be made, to leverage the strength and ambition of the youths.

“The COVID-19 crisis has provided a wake-up call to address the long-standing structural challenges that could constrain the government’s ambition to lift 100 million Nigerians out of poverty.

“There is no time like the present for the country to prepare for future climate and conflict shocks and seize the promise of its young population to lay strong foundations for inclusive growth,” he said.

The post Rising Food Prices Could Push 6m more Nigerians into poverty- World Bank first appeared on AgroNigeria.

The post Rising Food Prices Could Push 6m more Nigerians into poverty- World Bank appeared first on AgroNigeria.

Sourced from Agro Nigeria

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