Friday, May
01, 2020 / 01:20 PM / FDC / Header Image Credit: Newswatch Nigeria
The World Food Programme Global hotspot report (2020)
highlighted Nigeria as one of the 18 African countries that is food insecure
and at a high risk of sliding into further crisis post covid-19.The economy is
already at a boiling point due to lower oil proceeds, plunging external
reserves, a weak currency, poor health care facilities, high unemployment and
inequality levels. Nigeria is currently the poverty capital of the world, with
over 50% of its population (200 million) living below a dollar every day.
Meanwhile, economic growth is projected to shrink to 3.40% by 2020.

The outbreak of Covid-19 in Nigeria has aggravated the
dismal situation of the country and in response, the federal government, just
like other countries ordered a complete lockdown in states that had recorded
cases of the virus. The lockdown, which lasted for 4 weeks, has now been eased
in Lagos, Abuja and Ogun states with interstate movement still restricted. Even
though, the situation in the country still points to a mild to moderate outbreak
of the virus, the impact of this nationwide directive has been significant to
the average Nigerian. Nigeria currently has 1,728 confirmed cases of the virus,
which is 4.51% of the infected cases in Africa (38,351).
Impact of the lockdown
- Spike in Food Prices:
As people began stocking up for the lockdown period, prices of domestic
commodities jumped by over 50% making it even more difficult for people to
purchase a decent meal for a day, let alone 4 weeks. For example, a bag of
garri (50kg) previously sold for N8,500 is now sold for N12,000.
- Food scarcity:
With major markets closed and movement restricted, transportation of food to
states like Lagos has been reduced drastically. Popular staples like yam,
garri, plantain that are brought in from the north, south- east and south-west
have now become scarce. Meanwhile, traders now trek to central markets to
purchase staples for re-sale in their local areas.
- Income cut:
Individuals who make daily wages have had to bear with a 3-week disruption in
their means of livelihood and these are mainly players in the informal sector
like traders and taxi drivers. These people have low-income levels, no savings,
or pensions that provide a social safety net, and over 70% are poor. The
informal sector makes up about 80% of Nigeria's active working force8 and in
Lagos alone, about 65% of the state's population work in this sector.
- Social unrest: This is the ripple effect of
hunger and no money. Survival instincts are setting stage in local communities
and the probability of the states on lockdown to deal with this unrest
alongside covid -19 is almost inevitable. In Lagos and Ogun, places like Agege,
Iyana-ipaja, Ogba, Oke-Ira, Ayobo and Mowe are experiencing what is called "survival induced robbery" and both young and old have taken to the streets as
vigilantes to protect their own.

Who else is involved?
South Africa
In
South Africa, the lockdown has resulted in civil unrest because of hunger and
high crime rate. About 9.6 million children who are dependent on school feeding
schemes cannot feed adequately as schools are closed. Meanwhile, thousands of
other citizens that rely on community nutrition centres are forfeiting meals,
which on a normal day, is their only source of feeding.
Zimbabwe
As the
covid-19 pandemic looms, Zimbabwe is facing the high risk of an economic
catastrophe. Social unrest is on the rise as the country remains food insecure
and politically unstable. WFP says that the country is now a hunger hotspot, as
it is overheating with the worst food insecurity in recent times. Food
inflation spiked to over 700% in 2019 and currently, over five million people
are in hunger crisis.
Are the palliatives enough?
The
Federal and state governments are undoubtedly set on the right path with abrupt
palliatives and directives to tackle the problems of food scarcity and poverty
during this period. With some of these which include
- Conditional cash transfers of N20,000 to households
in Abuja.
- Financial support to the urban poor - who are
regarded as citizens who have N5,000 and below in their bank accounts and
people who top N100 or less on their phones. The Minister of Humanitarian
Affairs, Disaster Management and Social Development mentioned that these people
will be identified using the national social register, BVN numbers and phone
credit history.
- The emergency food markets set up in several local
government areas in Lagos state
The
question of whether they are enough highly depends on the reach, implementation
effectiveness and sustainability through this covid-19 times. If the current
measures are enough, it is expected to reach the target audience (financially
vulnerable in all 36 states) equally and fairly. Transportation and
distribution of food items to individuals and households and conditional
transfers should be made at the right time and to the right people. Finally,
these measures should be sustained throughout the designated period, to avoid
food scarcity, social unrest, health scare and the covid-19 crisis deepening.
Going Forward
Every
action begets a reaction, therefore with either of these steps taken by the
federal and state governments, here are the likely outcomes.

Related News - Nigeria Economy
- Nigerian
Economic Update: A Throw of the Dice
- Guidelines
and Recommendations: Reopening the Nigerian Economy
- GDP By
Income and Expenditure Approach Q4 2019 - Household Final Consumption
Declined by -2.40%
- Ahead of
Tomorrow on WebTV: Discussions on COVID-19; Reinventing Nigeria's Economy
- Nigeria
Weekly Update: Short and Long Currency Cycles
- Nigeria
Needs A National Strategy To Integrate Factor Endowment Into A Plan -
Prof. Utomi
- A
Surprising Boost to the FAAC Payout; April Payment Amount to N781bn
- Ahead of
Tomorrow on WebTV: Discussions on Repositioning Nigeria's Economy Beyond
COVID-19
- Impact of
Privatization on Nigeria's Economy
- Can Africa
Afford COVID-19 Lockdowns? - Chukwuma Soludo
- COVID-19;
Nigeria Needs To Relax Foreign Exchange Management To Boost
Industrialization - Dr. Yusuf
- Nigeria's
Economy After Oil: How Should We Prepare?
- The
Disruptive Impact of COVID-19
- Nigeria's
Impending Recession
- Roadmap to
Rebooting Nigeria's Economy from COVID-19
- Coronation
Weekly: Interest Rate Conundrum
- Headline
Inflation Increases By 12.26% YoY In March 2020; 0.06% Higher Than February
2020 Rate
- Ahead of
Tomorrow On WebTV: COVID-19 and The Strategic Implications to Business
Planning
- COVID-19
and the Construction Sector
- Ahead
Tomorrow On WebTV: Who Really Lives In Nigeria? Analysis On Nigeria's New
Demography

Related News - Health
- Pres.
Buhari Approves Gradual Easing of Lockdown Measures Effective From May 4th
2020
- Ogun State
Embarks on Mass Testing; Releases Schedule of Venues and Dates
- LASG Issues
Update on the Coronavirus Situation in Lagos State As At April 25, 2020
- Ahead of
Tomorrow on WebTV: Discussions on COVID 19; Focus On Healthcare
Infrastructure In Nigeria
- COVID-19:
Probability of Fatalities
- COVID-19:
Statement by President Cyril Ramaphosa on Further Economic and Social
Measures
- Lagos
Launches Eko TeleMed for Remote, Non-COVID-19 Consultation
- LASG Issues
An Update on the Coronavirus Situation in Lagos State
- Apples in
Ghana, Pears in Nigeria - FBNQuest
- COVID-19:
Ghanaian President Addresses the Nation; Lifts Restriction on Movements
- Fast,
Flexible Financing Could be a Game-Changer in Fighting COVID-19
- COVID-19:
President Muhammadu Buhari Extends Lockdown In Abuja, Lagos and Ogun For
Another 14 Days
- WHO and
Partners Call for Urgent Investment in Nurses
- Katsina
State Govt Lifts Ban on Friday Prayers; To Be Conducted Under Stipulated
Health Guidelines
- Alibaba to
Collaborate With African Medical Experts Via MediXChange to Minimize
COVID-19 Outbreak
- 5 Ways to
Stay Positive and Productive During the COVID-19 Lockdown
- The
Psychology of COVID-19
- COVID-19:
Medical Facilities to be Provided in 6 Geo-Political Zones of Nigeria
- COVID-19:
President Buhari Announces Lockdown In Lagos, FCT and Ogun for 14days
