Naira depreciation will worsen Nigeria’s food, energy crisis

Naira depreciation will worsen Nigeria’s food, energy crisis says World Bank

Naira depreciation will worsen Nigeria’s food, energy crisis says World Bank

The shrinking value of the Nigerian naira and currencies of most developing economies are driving up food and fuel prices in ways that could deepen the food and energy crises that many of them 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 documented.

Read:  Fitch affirms ratings of FBN holdings, first bank

It further noted that from the Russian invasion of Ukraine in February 2022 through the end of last month, 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.

Read:  UBA GMD, Uzoka wins finovator of the year award

According to the Washington-based bank, 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.

Read:  MTN shareholders to get N174.4bn final dividend 

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.


Related posts

Jaiz Bank grows profit by 37% to N4.2b


Nigeria-Indonesia trade balance hits $4.7bn, as experts task manufacturers on tech.


Analysts expect MPC to raise lending rate


Coca-Cola emerges best company in promotion of health, wellbeing


FMN sustainable growth strategy impacts shareholder value


Nigeria Records $223.3m FDI In 5 Months.


Leave a Comment