Navigating Nigeria’s food system challenges in the face of inflation and reform

Main Messages: 1. Low-income households in both urban and rural areas are hardest hit by rising food prices. Post-reform (fuel subsidies removal and exchange rate liberalization) price shocks and persistent inflation have disproportionately affected poor urban and rural households, forcing them to...

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Autores principales: Omamo, Steven Were, Andam, Kwaw S., Balana, Bedru, Amare, Mulubrhan, Popoola, Olufemi, Nwagboso, Chibuzo
Formato: Brief
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2025
Materias:
Acceso en línea:https://hdl.handle.net/10568/174326
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author Omamo, Steven Were
Andam, Kwaw S.
Balana, Bedru
Amare, Mulubrhan
Popoola, Olufemi
Nwagboso, Chibuzo
author_browse Amare, Mulubrhan
Andam, Kwaw S.
Balana, Bedru
Nwagboso, Chibuzo
Omamo, Steven Were
Popoola, Olufemi
author_facet Omamo, Steven Were
Andam, Kwaw S.
Balana, Bedru
Amare, Mulubrhan
Popoola, Olufemi
Nwagboso, Chibuzo
author_sort Omamo, Steven Were
collection Repository of Agricultural Research Outputs (CGSpace)
description Main Messages: 1. Low-income households in both urban and rural areas are hardest hit by rising food prices. Post-reform (fuel subsidies removal and exchange rate liberalization) price shocks and persistent inflation have disproportionately affected poor urban and rural households, forcing them to reduce food consumption and dietary diversity. Malnutrition and food insecurity are on the rise, particularly among children and women-headed households, with sharpest impacts in conflict-affected areas. 2. Small-scale farmers are not benefiting proportionately from price increases. Despite surging food prices, small-scale farmers face escalating input costs, poor market access, and structural in-efficiencies that leave them with marginal gains far below the rate of inflation. 3. Trading networks maintain healthy margins, amplifying systemic inefficiencies. Traders and intermediaries dominate the food supply chain, passing on increased costs to consumers while pre-serving or even increasing their profit margins, highlighting inequities in the distribution of benefits along the value chain. 4. Recent economic reforms and external shocks exacerbate structural weaknesses. Economic reforms, including the removal of fuel subsidies and exchange rate adjustments, have amplified existing challenges in the food system, including high transport costs, inadequate infrastructure, and fragmented markets. 5. Policy interventions should protect vulnerable groups and strengthen local food systems. Addressing these disparities requires targeted safety nets for consumers, support for small-scale farmers, and systemic investments to reduce inefficiencies in the value chain while promoting cli-mate-resilient food systems.
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spelling CGSpace1743262025-12-09T19:39:34Z Navigating Nigeria’s food system challenges in the face of inflation and reform Omamo, Steven Were Andam, Kwaw S. Balana, Bedru Amare, Mulubrhan Popoola, Olufemi Nwagboso, Chibuzo economics food systems households inflation Main Messages: 1. Low-income households in both urban and rural areas are hardest hit by rising food prices. Post-reform (fuel subsidies removal and exchange rate liberalization) price shocks and persistent inflation have disproportionately affected poor urban and rural households, forcing them to reduce food consumption and dietary diversity. Malnutrition and food insecurity are on the rise, particularly among children and women-headed households, with sharpest impacts in conflict-affected areas. 2. Small-scale farmers are not benefiting proportionately from price increases. Despite surging food prices, small-scale farmers face escalating input costs, poor market access, and structural in-efficiencies that leave them with marginal gains far below the rate of inflation. 3. Trading networks maintain healthy margins, amplifying systemic inefficiencies. Traders and intermediaries dominate the food supply chain, passing on increased costs to consumers while pre-serving or even increasing their profit margins, highlighting inequities in the distribution of benefits along the value chain. 4. Recent economic reforms and external shocks exacerbate structural weaknesses. Economic reforms, including the removal of fuel subsidies and exchange rate adjustments, have amplified existing challenges in the food system, including high transport costs, inadequate infrastructure, and fragmented markets. 5. Policy interventions should protect vulnerable groups and strengthen local food systems. Addressing these disparities requires targeted safety nets for consumers, support for small-scale farmers, and systemic investments to reduce inefficiencies in the value chain while promoting cli-mate-resilient food systems. 2025-04-24 2025-04-25T16:03:55Z 2025-04-25T16:03:55Z Brief https://hdl.handle.net/10568/174326 en Open Access application/pdf International Food Policy Research Institute Omamo, Steven Were; Andam, Kwaw S.; Balana, Bedru; Amare, Mulubrhan; Popoola, Olufemi; and Nwagboso, Chibuzo. 2025. Navigating Nigeria’s food system challenges in the face of inflation and reform. Policy Brief April 2025. Washington, DC: International Food Policy Research Institute. https://hdl.handle.net/10568/174326
spellingShingle economics
food systems
households
inflation
Omamo, Steven Were
Andam, Kwaw S.
Balana, Bedru
Amare, Mulubrhan
Popoola, Olufemi
Nwagboso, Chibuzo
Navigating Nigeria’s food system challenges in the face of inflation and reform
title Navigating Nigeria’s food system challenges in the face of inflation and reform
title_full Navigating Nigeria’s food system challenges in the face of inflation and reform
title_fullStr Navigating Nigeria’s food system challenges in the face of inflation and reform
title_full_unstemmed Navigating Nigeria’s food system challenges in the face of inflation and reform
title_short Navigating Nigeria’s food system challenges in the face of inflation and reform
title_sort navigating nigeria s food system challenges in the face of inflation and reform
topic economics
food systems
households
inflation
url https://hdl.handle.net/10568/174326
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