The World Bank has blamed the dip in Nigeria’s agricultural sector on the devaluation of the naira by President Bola Tinubu’s administration.
This was stated in a recently released development update report on Nigeria.
According to the global apex bank, the fall in Nigeria’s agricultural output to 0.8% is because of “naira depreciation”.
“Agricultural output growth fell to 0.8 percent yoy (year on year) in H1 2024,” the report stated.
“The sluggish growth largely resulted from contractions in livestock production and a slowdown in crop production.”
“The sector continues to be affected by unfavorable climatic conditions (low rainfall in 2023 farming season and heatwaves in Q1 2024), insecurity in farming communities, and higher costs of imported farm inputs − such as fertilizer and other agrochemicals following the naira depreciation,” the report stated.
The Nigerian naira continues to weaken, trading at over N1650 per dollar, amidst worsening inflationary pressures. Food inflation, in particular, has seen substantial growth, exacerbating economic concerns.
As of September 2024, the country’s food inflation stood at 37.7%, representing an increase from the 32.15% recorded in August 2024
SaharaReporters earlier reported the dip in the growth of Nigeria’s crop production sector, falling from 15.61% in the fourth quarter of 2023, to 2.17% in the second quarter of 2024.
26.5 million Nigerians are also projected to be food insecure in 2024, according to the United Nations.
Recently, the World Bank noted that 129 million Nigerians are now living in poverty.
The Nigerian government has repeatedly promised to boost the agriculture sector, but despite these assurances, food prices continue to skyrocket.
