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Russian/Ukraine War: ActionAid Calls on FG to Roll Out Social Protection Measures to Mitigate Economic Crunch

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Russian/Ukraine War: ActionAid Calls on FG to Roll Out Social Protection Measures to Mitigate Economic Crunch

Russian/Ukraine War: ActionAid Calls on FG to Roll Out Social Protection Measures to Mitigate Economic Crunch

By: Michael Mike

ActionAid has lamented the rising cost of living in Nigeria and across the world as a result of the ongoing war between Ukraine and Russia, therefore calling on Nigerian government to immediately roll out social protection measures to mitigate the effects on Nigerians

A statement on Friday said: “The cost of food, fuel, and fertiliser in some of the world’s poorest communities is soaring, with families spending double, triple, and nearly four times what they were paying before Russia invaded Ukraine, a new analysis by ActionAid finds.”

The statement added that while the average cost of wheat products like pasta has increased by more than 50% in local markets and communities in the 13 countries surveyed, families in Lebanon, which is heavily dependent on imports from Ukraine and Russia, are spending as much as 275% more than they were at the end of February.

The statement read: “In the Horn of Africa, where 20 million people are already facing severe hunger due to prolonged drought, communities in Somaliland are now spending more than double (163%) as much on a loaf of bread. Average prices for cooking oil have increased by over 60%, but in some areas of Somaliland, costs are up by as much as 260%.

“In Nigeria, findings show that the prices of wheat bread have increased up to 59 % in Sanrab semi-urban community in Kwara state. In Yobe state urban community of Nasarawa, the prices of wheat bread have increased up to 67 %. In Lagos, the price increase has been up to 127%. In rural areas of Kaduna, fertiliser prices have increased up to 111 %. At the same time, few areas of Lagos have witnessed up to a 111 % increase in sunflower cooking oil.”

Also Read: Deputy Commander of Ukraine’s Navy killed in action –…

The statement while noting that the UN Food and Agriculture Organisation (FAO) is releasing its latest global food price index, which found that world food commodity prices reached their highest levels last month, said ActionAid’s analysis finds that, at the local community level, food and fuel price hikes are far outstripping already record-breaking rises globally*, suggesting the Ukraine war has exacerbated ongoing food and fuel price challenges in communities most impacted by the climate crisis, humanitarian emergencies, and political and economic turmoil. 

The survey of market traders and community members in 13 countries across Africa, Asia, Latin America and the Middle East found that the cost of essentials has increased with fertilizer up by an average of 83% (rising by up to 196% in the Elfeta area of Ethiopia), cooking oil up by an average of 64% (rising by up to 260% in the villages of Googeysa and Xidhinta in Somaliland); petrol up by an average of 63% (rising by up to 253% in the Myaing area of Magway District, Myanmar, cooking gas up by an average of 60% (rising by up to 175% in one area of Zimbabwe); pasta up by an average of 53% (rising by up to 275% in the Baalbek area of Bekaa district, Lebanon) and bread up by an average of 48% (rising by up to 163% in villages of Ceel-Giniseed and Teysa, Somaliland).

ActionAid International’s global climate justice lead, Teresa Anderson, said: “The conflict in Ukraine has created a perfect storm of skyrocketing prices for food, fuel and fertiliser, disproportionately affecting local communities who barely have any belt left to tighten.

“Our survey found that prices are now double, triple or almost four times as much as before the war started in some places.

“The world is now on track for a global food crisis that looks far more deadly, devastating, and prolonged than 2007-08. Governments and international institutions must take urgent action to avert catastrophic hunger on an unprecedented scale.”

According to the statement, just over two months from the start of Russia’s invasion of Ukraine, families in existing hunger hotspots worldwide are already feeling the burden of skyrocketing prices.

Mothers are reported to having have to take their children out of school to afford to buy food and shared their heartache at only being able to provide one meal a day for their families. In Somaliland, one woman spoke of giving her children black tea to stave off hunger pangs.

Other people said they have become sick from drinking unclean water from ponds, and many families are incurring debt to cover essential expenses such as medical costs, seeds and fertiliser. 

As well as the soaring cost of wheat products and cooking oil, the cost of fuel and fertilisers is also rising at an alarming rate.

ActionAid’s survey shows the cost of petrol and cooking gas has gone up by around 60% on average. However, one community in Myanmar reports that the price of petrol has soared by 253%, and families in Zimbabwe report petrol increases as high as 227% and cooking gas increases by 175%.

Chemical fertilisers, a key component of industrialised farming systems, require large amounts of fossil fuels for their production. The survey shows that the average fertiliser price has increased by more than 80%. However, prices have gone up by as much as 196% in one district of Ethiopia. With the planting season about to begin or already underway in many parts of the world, crop yields and farming incomes will be hit hard in 2022. 

Country Director of ActionAid Nigeria, Ene Obi, in her reaction, said: “The Ukraine-Russia war has worsened the cost of living in many parts of the world, but the gaps in governance and lack of social safety-net have thrown more Nigerians into the abyss of poverty. The current hyper-inflation has made the meagre income of many Nigerians insignificant; for a government committed to lifting 100million Nigerian out of poverty, there is a need for reflection and immediate action.

Rising public debt, unemployment, inflation, and high cost of living require the immediate embracing of fiscal federalism in absolute terms. This will enable the country to break the vicious cycle of poverty. It will eliminate the wholesale dependence on oil, making Nigeria a monolithic economy. Adopting fiscal federalism principles will be a practical approach to solving the challenges governments at all levels face today, such as the generation and equitable distribution of income, efficient and effective allocation of resources, and economic stability. Revenue drive and allocation of resources can be done effectively by states and local governments with strong measures to curtail graft and corruption”.

ActionAid therefore called for the immediate roll-out of social protection measures, which target women and girls, including cash transfers and food support, to assist families most at risk.

The statement further read that: “Governments must rapidly train farmers on agroecological approaches to avert dramatic global yield losses from a worldwide lack of fertilisers later this year to avert dramatic global yield losses. Agroecology means adopting farming practices that work with nature, such as using local manure to build soil fertility and reduce reliance on chemical fertilisers. “In the longer term, governments dependent on food imports must also invest in national and regional food reserves to act as buffers and reduce countries’ vulnerability to food shortages and price rises. The global fallout from the Ukraine crisis shows why a just transition to renewable energy and agroecological farming practices is more urgent than ever to address climate change and protect communities from shocks to world food and energy markets.”

Russian/Ukraine War: ActionAid Calls on FG to Roll Out Social Protection Measures to Mitigate Economic Crunch

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International

Nigeria Congratulates Trump on Election as US President

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6 days ago

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November 6, 2024

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Nigeria Congratulates Trump on Election as US President

By: Michael Mike

The Nigerian government has congratulated the Republican candidate in the United States of America presidential election, Donald Trump for his victory at the poll.

The Nigerian government in a statement on Wednesday signed by the spokesperson of the Ministry of Foreign Affairs, Amb. Eche Abu-Obe wish the 45th president who has been elected by the reason of the election as the 47th president great success.

The statement read: “Federal Republic of Nigeria wishes to congratulate incoming President Donald Trump on his victory as the next President of the United States of America.

“Nigeria wishes the 47th President of the United States of America great success in steering the affairs of the country and further assures of continued support and cooperation in matters of international peace and security.

“The Federal Republic of Nigeria applauds the Democratic contestant, Kamala Harris, for her efforts and contributions during her tenure as the Vice President of the United States of America.

“In the same vein, Nigeria also applauds outgoing President, Joe Biden, for his leadership and service to the American people.”

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International

UK’s Royal Fleet Auxiliary Vessel Visits Nigeria

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2 weeks ago

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October 30, 2024

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UK’s Royal Fleet Auxiliary Vessel Visits Nigeria

By: Michael Mike

RFA Lyme Bay, a United Kingdom Royal Fleet Auxiliary (RFA) vessel, has arrived in Premiere Port (Apapa Quays) Lagos, Nigeria, as part of a Defence Engagement programme across West African partner nations.

The visit is part of the maritime co-operation agreed under the UK-Nigeria Security and Defence Partnership in February 2024.

A statement on Wednesday said whilst in Nigeria, Lyme Bay, will conduct a variety of Defence Engagement activities including ship tours and the hosting of national dignitaries. Operationally, the ship will facilitate maritime capability training utilising embarked UK Royal Marines boarding and search teams to conduct drills and interoperability training with their Nigeria Navy counterparts.

On completion of the visit, RFA Lyme Bay will participate in Exercise Grand African Nemo, a multinational maritime security exercise, involving Spanish, French, Portuguese, Italian and Nigerian Naval forces off the coast of Nigeria.

Speaking on the Ship’s arrival, the UK Deputy Defence Adviser to Nigeria, Commander Jonathan Howe said: “The UK is committed to improving regional maritime security, as well as increasing Nigeria’s ability to constrain security threats ranging from piracy, violent extremist organisations. This deployment demonstrates our pledge to work with the Nigeria Government to tackle shared international security challenges and help improve maritime security in the Gulf of Guinea.”

Lyme Bay’s Commanding Officer, Commander, Capt James Wingrove RFA, said: “It is a great privilege to bring RFA Lyme Bay alongside in Nigeria. The opportunity for my ships’ company and embarked forces to visit the region presents an exciting prospect whilst the ability to train alongside our Nigerian counterparts to hone skills, improve capability and demonstrate our interoperability is extremely valuable”.

UK’s Royal Fleet Auxiliary Vessel Visits Nigeria

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International

UK-backed AFEX Celebrates 10 Years of Driving Agricultural Growth and Food Security Across Africa

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4 weeks ago

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October 15, 2024

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UK-backed AFEX Celebrates 10 Years of Driving Agricultural Growth and Food Security Across Africa

By: Michael Mike

A leading commodities player in Africa, AFEX, with support from the UK Government, has significant achievements across Nigeria, Kenya, Uganda, and Côte d’Ivoire, as it commemorates its 10th year reshaping the agriculture value chain in Africa, contributing to building sustainable food systems and creating lasting impact for farmers, agribusinesses, and communities.

Through their operations providing capital and storage infrastructure to farmers, processors and other parts of the value chain, AFEX has remained steadfast in its mission to enhance food security, reduce post-harvest losses, and introduce liquidity into agricultural markets through efficient market structures.

Established in 2014 as the first private commodities exchange in Nigeria, AFEX has directly supported smallholder farmers by providing them with access to finance, high-value market opportunities, and crucial extension services. This has not only improved the livelihoods of these farmers but also enhanced their productivity and overall output. Within the same period, AFEX has also grown its presence across the continent, expanding from Nigeria into Kenya, Uganda, and Côte d’Ivoire, and establishing regional commodity markets that facilitate cross-border trade while strengthening food systems throughout these regions.

In Nigeria, AFEX has expanded its farmer network to over 500,000 and traded over 1 million metric tons of essential crops such as maize, rice, sorghum, and soybeans. This trading volume has made a significant contribution to improving food availability and stability in its operational areas. Furthermore, through its financing platform, AFEX has injected over $250 million into agricultural value chains, ensuring that farmers have access to the capital they need to scale their production.

Since expanding into Kenya and Uganda in 2021 and 2022, AFEX has been bullish in the pursuit of their strategic Pan-African expansion goal to penetrate 8 African countries in the next decade, promoting the efficient trade of commodities in Africa while supporting the AFCFTA’s objectives to boost regional trade integration on the continent. Today, its East African operations have impacted over 30,000 farmers through financing and storage services, traded over 12,000 metric tonne and traded about KSH1,600,000,000. In its newest market, Côte d’Ivoire, announced at the beginning of 2024, AFEX has onboarded over a thousand farmers, and disbursed maize inputs across 155 hectares, boosting productivity and food self-sufficiency.

Commenting on the anniversary, the UK’s Deputy High Commissioner in Lagos, Mr. Jonny Baxter, said: “The UK is proud to have provided early-stage funding to AFEX 10 years ago, and to see the company grow with such success, enhancing agricultural productivity and bolstering food security in Nigeria. The agricultural sector stands as a vital pillar to Nigeria’s economy, playing a significant role in job creation and investment potential. We look forward to continuing to support Nigeria’s agriculture sector and the opportunities this provides for its economic growth.”

Group CEO, AFEX, Ayodeji Balogun, reflected on the company’s 10-year journey, stating, “These past 10 years have been about creating innovative solutions for African agriculture and developing sustainable ecosystems that empower farmers. As we mark this milestone on World Food Day, we are reminded that our mission is more critical than ever. Our goal is to continue building the infrastructure and platforms that will secure Africa’s food future.”

Speaking about British International Investment’s $26.5 million commitment to AFEX in 2023, Nigeria Coverage Director of the UK’s development finance institution (DFI), Mr. Benson Adenuga said: “We are delighted to partner with AFEX to provide the necessary support to scale into a pan-African champion, driving agribusiness and strengthening food systems in multiple countries across the continent. Our commitment will support AFEX to construct 20 warehouses in strategic locations in Nigeria, Kenya and Uganda, increasing storage capacity for up to 200,000 farmers and underlining our mandate to support ambitious businesses in Africa”.

A key element of AFEX’s impact lies in its investment in infrastructure. Over the past decade, the company has developed a robust network of more than 200 warehouses across Africa, providing secure storage for agricultural produce and reducing post-harvest losses by up to 30% in some regions. By reducing post-harvest losses and improving productivity, AFEX is playing a critical role in enhancing food security, addressing the challenges of climate change and promoting sustainable agricultural practices across Africa. This commitment mirrors the global call to action on World Food Day to ensure that food systems are inclusive, resilient, and capable of feeding future generations.

AFEX is a platform business that enables efficient trade for commodities in Africa. Solutions start at producer level, ensuring improvement in productivity and livelihoods while building up commodity volumes in the right quality and quantity for local and regional trade.

Operating through three business units, AFEX addresses the challenges faced by smallholder farmers, providing better access to inputs, credit facilities, micro-insurance, storage services, training, and markets. Partnership with different key players across the agricultural value chain – including processors, logistics service providers, financial institutions, and regulatory authorities – makes its goal of supporting Africa’s food security possible.

A range of clients and members also trade physical commodities and commodity contracts through AFEX’s technology platforms, as AFEX continuously bridges the gap between the capital market and the commodities market, thus unlocking finance for production, trade, processing and export of commodities.

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