In a bid to bolster food security in Nigeria, the United States government has made substantial investments totaling almost $200 million over the past five years. This announcement was made on Thursday, March 21, during the launch of the 2024-2029 Global Food Security Strategy in Abuja.
David Greene, the Acting Ambassador to Nigeria, disclosed these figures alongside other significant financial allocations. Notably, $150 million has been allocated as grants to support thirty-three Nigerian private sector companies. Additionally, a significant portion of $22 million has been earmarked for investment in Nigeria’s cocoa industry, covering seven states.
The implementation of the Global Food Security Strategy in Nigeria over the next five years aims to amplify agricultural productivity and catalyze economic development driven by the agricultural sector. Greene emphasized the importance of Nigerian stakeholders taking ownership of their challenges, despite external support.
Under the auspices of the United States Agency for International Development (USAID), considerable efforts have been directed towards agriculture development in Nigeria. The nearly $200 million investment over five years has been targeted at enhancing food security and building household resilience across several Nigerian states.
Moreover, modest grants provided to 33 private-sector companies have resulted in the leveraging of over $150 million in private-sector development, yielding $306 million in domestic sales and creating over 23,000 jobs.
Greene also highlighted ongoing educational initiatives facilitated by exchange programs and fellowships between the United States and Nigeria. These programs aim to benefit Nigerian scholars and professionals, such as doctoral candidate Agada Blessing, who is conducting research on climate change and fertilizer use at Michigan State University with support from USAID.
Addressing Nigeria’s pressing food insecurity crisis, Greene advocated for the adoption of genetically modified crops to boost productivity and income for smallholder farmers. He also stressed the importance of removing trade restrictions to encourage competition and free trade, ultimately making food more accessible and affordable for all Nigerians.
Nigeria has been grappling with a severe food inflation crisis in recent years, with an inflation rate soaring to 31.7% in February 2024. Factors contributing to this crisis include the removal of petrol subsidies, currency exchange rate adjustments, and insecurity. The resulting increase in food prices has placed a significant strain on household budgets, prompting the federal government to declare a state of emergency on food insecurity.
Despite these measures, persistent price hikes underscore deeper economic challenges facing the nation, reflecting the broad impact of fiscal measures on the cost of living.
As Nigeria navigates its way through this challenging period, the substantial investments and collaborative efforts between the United States and Nigerian stakeholders offer a glimmer of hope in addressing the pressing issue of food security and fostering economic resilience in the country.
Credit: Nairametrics (Text Excluding Headline)