THE International Monetary Fund (IMF) says addressing food insecurity is the immediate priority for the Nigerian government as concerns grow over worsening hunger, culminating in the looting of warehouses and trucks carrying food items in Nigerian cities.
The IMF said this in a statement on Monday, March 4, to convey the preliminary findings of its staff teams that have recently visited the country.
According to the IMF, the recent approval of a well-targeted and effective social protection system is an important step toward addressing this, and implementation will be crucial.
The team led by IMF’s mission chief for Nigeria, Axel Schimmelpfennig, says it visited Lagos and Abuja from February 12 to 23 and held discussions for the “2024 Article IV Consultations” with Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and Central Bank of Nigeria Governor, Olayemi Cardoso.
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The team also met with senior government and Central Bank of Nigeria (CBN) officials, the Ministry of Agriculture, the Ministry of the Environment officials and representatives from sub-nationals, the private sector and civil society.
“With about eight per cent 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 fertilisers and Nigeria’s introduction of dry-season farming,” the IMF notes.
Despite economic growth strengthening in the fourth quarter, with the gross domestic product (GDP) reaching 2.8 per cent in 2023, the IMF said Nigeria’s economic outlook was challenging.
“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.”
Noting the recent improvements in revenue collection and oil production, the team says Nigeria’s low revenue mobilisation constrains the government’s ability to respond to shocks and promote long-term development.
Nigeria’s non-oil revenue collection improved by 0.8 per cent of GDP in 2023, and oil production reached 1.65 million barrels per day in January due to enhanced security.
The IMF team says capping fuel pump prices and electricity tariffs below cost recovery could have a fiscal cost of up to three per cent of GDP in 2024.
“The recently approved targeted social safety net programme that will provide cash transfers to vulnerable households needs to be fully implemented before the government can address costly, implicit fuel and electricity subsidies in a manner that will ensure low-income households are protected,” it urges.
On Sunday, March 3, The ICIR reported how some residents invaded the government-owned warehouse and stole foodstuffs, including bags of maize, around the Tasha community in the Federal Capital Territory.
The lootings are the fallout of hunger and hardship Nigerians face.
In August 2023, The ICIR also reported when the acting Inspector-General of Police (IGP), Kayode Egbetokun, ordered tight security around warehouses across the country over the possible invasion.