COVID-19: How the pandemic has impacted Nigerian commodities
The World Bank says the global agricultural markets have been less affected so far by the pandemic than industrial commodities. Prices of the main food commodities have declined by about 9 per cent since January. But disruptions to trade, distribution and supply chain raises concerns for food security. Nigeria recently gave four companies an emergency approval to import maize. Akinyinka Akintunde, Vice President; Financial Markets at AFEX Commodities Exchange joins CNBC Africa for more.
Thu, 17 Sep 2020 13:17:14 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Resilience of global agricultural markets amid the pandemic compared to industrial commodities
- Need for structural improvements in Nigeria's agriculture sector to enhance food security and self-sufficiency
- Importance of policy interventions and collaborative efforts to mitigate rising commodity prices and support smallholder farmers
The global agricultural markets have proven to be more resilient to the impacts of the COVID-19 pandemic compared to industrial commodities, according to the World Bank. Despite a 9% decline in prices of main food commodities since January, concerns over disruptions to trade, distribution, and supply chains remain, raising issues around food security. Nigeria, in response to these challenges, recently granted emergency approval to four companies for maize imports, signaling a need for strategic interventions to safeguard the country's food supply chain. Akinyinka Akintunde, Vice President of Financial Markets at AFEX Commodities Exchange, joined CNBC Africa to discuss the implications of the pandemic on Nigerian commodities. Akintunde highlighted the need for structural improvements in the local agriculture sector to enhance food security and ensure self-sufficiency. He emphasized the importance of empowering smallholder farmers with access to quality inputs and credits to boost productivity and reduce production costs. The interview touched upon the differences in commodity management strategies between Nigeria and its neighboring countries like Ghana and Ivory Coast, where government-led initiatives have been successful in supporting small-scale farmers. Akintunde underscored the significance of creating direct market access for Nigerian farmers to international markets, akin to the commodity boards operating in Ghana and Ivory Coast. He outlined the potential impact of the pandemic on commodity prices, attributing potential price hikes to supply chain disruptions and unfavorable climate conditions affecting production. Akintunde called for collaborative efforts between government agencies and private organizations to mitigate the impact of rising commodity prices on consumers, focusing on policy interventions to support farmers and ensure stable food prices. As the agriculture sector navigates the challenges posed by the pandemic, the implementation of effective policies and interventions will be crucial in sustaining the resilience of the Nigerian commodities market. The coming months are expected to reveal the effectiveness of these measures in maintaining food security and market stability amidst ongoing global uncertainties.
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