The Boston Consulting Group (BCG) report titled “The War in Ukraine and the Rush to Feed the World,” has stated that Nigeria and other countries were expenditures on food constitute more than 40 per cent of households’ income would be severely affected by the conflict between Russia and Ukraine.
The report which was published last month and made avilable to Nigerian journalists on Tuesday, said: “But the effects will be far more severe in the many countries around the world where food comprises over 40 per cent of consumer spending, including Pakistan, Guatemala, Kenya, and Nigeria to name a few, and for the most vulnerable populations in every country,” adding that”Nigeria and the other affected countries would face severe levels of extreme poverty, compounded by the ongoing economic and social challenges associated with the COVID-19 pandemic.”
The report stated that “the looming global food crisis is not about the world’s capacity to produce enough food. Rather, it is about the inability of our food systems to store and distribute enough food–and the inputs that are needed to produce it securely and equitably–in the face of the disruption caused by the war in Ukraine.”
According to the BCG report, additional factors worsening the food crisis include heavy reliance on food imports, high import bills, high inflation, a high debt burden, climate risks, and civil unrest.
The Managing Director and Partner at BCG Nigeria, Mr. Stefano Niavas, who commented on the report said: “The impact of the Ukraine war on our food systems calls for critical and immediate review of our budgetary allocation. Currently, Nigeria spends over 27 times of its Agriculture allocation to service its debt. Compounded with the Ukraine war and the lingering challenges of COVID-19, the average debt-to-GDP ratio across the continent is expected to rise from 60 per cent to 70 per cent.”