Nigeria’s insecurity crisis: A threat to national and global food security

The ongoing insecurity in Nigeria, particularly in the northern and central regions, has escalated beyond a national issue, threatening both regional and global food security. Agriculture, which forms a critical part of Nigeria’s economy and the livelihoods of millions, is being severely disrupted due to conflicts in key farming areas like Borno, Zamfara, and Benue. These conflicts have forced farmers to abandon their fields, resulting in a sharp decline in food production.

Staple crops such as maize, rice, and millet are now facing critical shortages, and Nigeria is ranked as the second-highest country globally in terms of acute food insecurity, with over 24 million people affected, according to the 2024 Global Report on Food Crises. This food insecurity is not limited to Nigeria, as the country has long been a key supplier of agricultural goods across West Africa. The disruption in production and food supply chains poses a significant risk to the stability of regional food markets.

The crisis has also led to soaring food prices, with inflation in the food sector reaching 39.53% year-on-year as of July 2024. Transportation costs have skyrocketed due to security concerns, further exacerbating the inflation problem. The Nigerian government’s efforts, including temporarily suspending duties on key food imports, have had limited success due to currency volatility and restrictive import policies. Meanwhile, insecurity in rural areas continues to deepen the food crisis.

Experts argue that addressing Nigeria’s food insecurity requires both national and international action. A multi-faceted approach, focusing on enhancing security, rebuilding agricultural infrastructure, and promoting alternative farming methods, is urgently needed. The broader global community must also step in, as Nigeria’s agricultural stability is crucial to maintaining food security across West Africa.
Source: BusinessDay

Expert Review for Agri-Food Stakeholders:
The security crisis in Nigeria has now reached a point where it poses severe threats not only to domestic agriculture but to the stability of regional and global food systems. For agribusiness stakeholders, the risks are significant, but so are the opportunities for strategic intervention and investment.

Impact on Agri-Food Stakeholders:

Disruption in Supply Chains: The displacement of farmers and abandonment of farmland in key agricultural zones have caused substantial disruptions in Nigeria’s food supply chain. Agribusiness stakeholders must prepare for ongoing shortages in staple crops like maize, rice, and millet, and should explore diversification in sourcing raw materials both locally and internationally. Partnerships with neighboring countries or collaborations with local farming cooperatives may mitigate some of these disruptions.

Rising Food Prices and Inflation: Food inflation, currently at 39.53%, reflects both the scarcity of locally produced food and the high cost of transportation. Agribusinesses involved in food processing and distribution must closely monitor price trends and adapt their pricing strategies accordingly. While this inflation presents challenges, it also creates potential opportunities for companies specializing in food storage, logistics, and technology solutions that improve supply chain efficiency.

Financial Risks: With Nigeria’s foreign exchange volatility and high costs for imports, stakeholders need to reassess their financial strategies. Companies with exposure to import-heavy operations should explore local sourcing alternatives or invest in production technologies that reduce reliance on imported inputs. Additionally, investors in the agribusiness space should consider innovative financial solutions, such as impact investing, that target both profitability and resilience in the face of ongoing instability.

Recommended Actions:

Enhanced Security Investments: Agribusinesses, particularly those with operations in high-risk regions, should consider collaborations with government and private security providers to safeguard their assets. Long-term stability depends on securing rural farming areas, and stakeholders should advocate for stronger national security interventions in agricultural zones.

Investing in Infrastructure: Strategic investments in agricultural infrastructure, including the rebuilding of rural economies, irrigation systems, and storage facilities, can significantly mitigate the crisis. Agribusinesses with a focus on supply chain development should seize this opportunity to invest in logistics and transportation solutions that reduce the risks of food shortages and high transportation costs.

Alternative Farming Methods:

Urban farming, agro-processing, and innovations such as vertical farming or hydroponics could offer viable alternatives for addressing food shortages caused by insecurity. Agribusiness stakeholders with an eye on sustainability should explore these methods as a way to diversify production and reduce dependency on conflict-affected areas.

Leveraging International Support: Agribusiness leaders should look to collaborate with global institutions that have a stake in Nigeria’s agricultural stability. International support, both in terms of investment and policy guidance, will be critical in addressing the underlying structural issues that exacerbate food insecurity.

While Nigeria’s insecurity crisis presents significant challenges for the agricultural sector, it also offers a moment for strategic intervention. By focusing on security, infrastructure, and innovative farming methods, Nigeria’s agribusiness stakeholders can not only weather the current crisis but also contribute to a more resilient food system that supports national and regional stability.