FBNQuest Research has harped on the need for the Federal Government to step up its efforts to bolster food security as this, according to the firm, is critical to reducing the country’s high inflation. The firm stated this while commenting on the World Bank’s latest Food Security report.
According to FBNQuest, the World Bank noted that despite the relative stability of global food markets, extreme weather coupled with geopolitical tensions continue to pose risks to global food security and that countries, including Nigeria, Ethiopia, and Yemen, among others, reported extreme food insecurity this year relative to the prior year, which was occasioned by heightened conflict and climatic shocks.
Further commenting on the report, the firm said: “In West Africa, severe weather conditions were highlighted as the primary cause of food insecurity in the region, leading to the announcement of states of emergency in several countries. “While ongoing security challenges remain a significant threat to food security in Nigeria, reported severe flooding, which has rendered citizens homeless and farmlands destroyed, have emerged as a potential risk to crop production and food supply.
“Although Nigeria’s food inflation has moderated for two consecutive months in August due to the high base effect and the seasonal impact of the food harvest season, it remains elevated compared to pre-inflationary levels. “Given that food inflation accounts for the largest component (about 51%) of Nigeria’s inflation basket, concerted effort by the fiscal authority towards improving food security in the country is paramount in further bringing down the nation’s elevated headline inflation.”
New Telegraph reports that in a report released last week, in which they predicted that Nigeria’s inflation is likely fell for the third straight month to 30.95 per cent in September from 32.15 per cent in August, analysts at Cowry Asset Management Limited said they expect increased food supply from the ongoing harvest season to help to soften inflation.
The analysts said: “Cowry Research notes a favourable downward shift in both headline and food inflation trends, signaling a significant change in the inflation trajectory. The moderation is driven by the CBN’s aggressive monetary policy, with interest rates now elevated to 26.75 per cent, coupled with government measures aimed at stabilising food prices.