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Beset with several problems that affect the common man, such as high inflation, which is nearing 30%, and a weak naira because of excessive imports, Nigeria has shown a “political will” to intensify to reform process aiming at medium and long-term payoffs.
Nigeria’s National Emergency Management Agency (NEMA) scaled up its security arrangements at its facilities around warehouses nationwide to prevent any breaches. Being the most populous country in the continent, the West African country is undergoing its worst economic trajectory presently. It has a population of over 210 million and is facing the problem of skewed distribution of income.
Beset with several problems that affect the common man, such as high inflation, which is nearing 30%, and a weak naira because of excessive imports, Nigeria has shown a “political will” to intensify to reform process aiming at medium and long-term payoffs.
Amidst these developments, much to the concern of the country, one of the nation’s most powerful trade unions launched protests last week demanding immediate measures to quell hunger. The union called for the opening of all food storage silos across the country to ensure equitable distribution. It may be recalled that recently residents in Abuja broke open warehouses to steal food items including bags of maize. The looting was reported to have lasted for several hours.
Experts attribute these developments to the flip side of economic reforms, particularly cutting down on food subsidies introduced earlier this year. The country scrapped ed fuel subsidies leading to price hikes in food, transportation, and energy costs.
The situation is likely to continue for some time since the West African country is importing most of the food products. Against a weak naira, the price level seems to remain high. This will keep more than 25 million people food insecure, according to the data released by the United Nations. The World Bank data analysis indicates that Nigeria is among the countries with the highest food expenditure with an estimated 60% of total personal income spent on food.
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Government sources, however, maintain that the transition stage would be soon over since the government is taking many proactive steps particularly for reining in high inflation and shoring up the value of domestic currency. Also, it expects some global companies to invest in domains like hydrocarbons and clean energy. Also, it feels that the new capacity being built to boost refining capacity in the country will help reduce its import of refined fuel from other countries.
