Citing the prevailing economic conditions and unfavourable regulatory frameworks, economic analysts at the financial, business and economic information hub, Proshareng, have warned Nigeria of an impending food crisis.
According to a recently published review of the wheat value chain, the analysts explained that due to the disruption to vital supply chains, globally and locally, as a result of several COVID-19 curtailment policies, and unfavourable FX regimes, and insecurity issues in the wheat-planting belt of Nigeria, securing food for the average Nigerian is becoming tougher to sustain.
The report highlighted the profit eroding effects of the shrinking global wheat production levels, increasing cost and skyrocketing freight/ free on board (FOB) rates placed on Nigeria-bound goods on the revenue of flour millers and bakers.
It submitted that the current price hike in the global wheat market, which the local millers rely upon to bridge the expansive supply short-fall occasioned by the low level of domestic wheat production, constitute an operational strain that is heavily impacting the cost of production of millers and have the potential to further elevate wheat-based staples prices.
Read more from the source- TRIBUNE