USAID Warns Nigeria, Other African Countries Of Higher Food Prices

The United States Agency for International Development (USAID) has warned Nigeria and other African countries of an impending hike in food prices in the upcoming months due to a halt on food export from Ukraine.

Isobel Coleman, who serves as USAID's Deputy Administrator for Policy and Programming, said during a virtual press conference on Thursday that since Russia has decided to withdraw from the Black Sea Grain Initiative, food prices have increased around the world.

"One of the world's largest breadbasket is Ukraine. By doing this, Russia is increasing food prices globally," Coleman said, Punch reported. "We've already seen how global food prices came down over time after the Black Sea Grain Initiative came into place."

She added that since Russia decided to opt out of the agreement, it has negatively impacted food prices across the world.

"This affects every country around the world, but it affects, most acutely, large import-dependent developing countries that have to spend much of their precious foreign exchange resources to purchase food to feed their population," Coleman said, the News Guru reported.

The Black Sea Grain Agreement is an initiative where grain and other food-related stuff were transported from Ukrainian ports to other countries. This agreement among Ukraine, Russia, Turkey, and the United Nations was made in July last year.

The agreement, which expired on July 17, was not extended by Russia. Hence, Ukraine won't be able to export grains via the Black Sea, which is bounded by Turkey, Bulgaria, Romania, Ukraine, Russia, and Georgia.

The warning came in the wake of the ongoing Ukraine and Russia conflict, which started in February 2022. According to the report, Nigeria imported around $500 million worth of grain from Ukraine as of 2021.

"We have invested in more than 40 countries across Africa, Asia, Latin America, and the Caribbean," she added. "We have 20 target countries that have high levels of poverty and hunger and also a strong potential to drive economic growth and transform food systems."

Aside from Russia not extending the agreement, other factors have also contributed to Nigeria facing hiked prices. Since President Bola Tinubu announced fuel subsidy removal in May, prices of food and fuel have skyrocketed in the country.

The situation has become so dire that thousands of Nigerian youths attacked the National Emergency Management Agency warehouses in Kaduna and Adamawa states earlier this week. This incident caused the lives of four people as security operatives shot them while 47 people were arrested.