Presence Country
Special Report

Nigeria Market Monitoring Bulletin

March 14, 2017

IPC 2.0 Acute Food Insecurity Phase

1: Minimal
2: Stressed
3: Crisis
4: Emergency
5: Famine
Concentration of displaced people
Would likely be at least one phase worse without current or programmed humanitarian assistance
FEWS NET classification is IPC-compatible. IPC-compatible analysis follows key IPC protocols but does not necessarily reflect the consensus of national food security partners.

IPC 2.0 Acute Food Insecurity Phase

1: Minimal
2: Stressed
3+: Crisis or higher
Would likely be at least one phase worse without
current or programmed humanitarian assistance
FEWS NET classification is IPC-compatible. IPC-compatible analysis follows key IPC protocols but does not necessarily reflect the consensus of national food security partners.
FEWS NET Remote Monitoring countries use a colored outline to represent the highest IPC classification in areas of concern.

IPC 2.0 Acute Food Insecurity Phase

Presence countries:
1: Minimal
2: Stressed
3: Crisis
4: Emergency
5: Famine
Concentration of displaced people
Remote monitoring
countries:
1: Minimal
2: Stressed
3+: Crisis or higher
Would likely be at least one phase worse without
current or programmed humanitarian assistance
FEWS NET Remote Monitoring countries use a colored outline to represent the highest IPC classification in areas of concern.

In June 2016, FEWS NET released an alert describing the national and regional implications of declining global crude oil prices on the Nigerian economy and subsequent currency depreciation since 2015. Within the context of this national economic shock, more than 3 million people in Northeast Nigeria already face significant food insecurity due to the Boko-Haram conflict. The Nigeria Market Monitoring Bulletin provides a summary of emerging market trends in Nigeria and the broader region. 

Key Messages

  • Despite recent increases in foreign reserves and direct intervention by the Government of Nigeria (GoN), the exchange rate gap between official and parallel rates remains. Structural challenges in the economy persists and continue to drive higher prices of both imported foods as well as local substitutes.

  • The Government of Nigeria direct support to agricultural production financing (Anchor Borrowers program) is yielding intended results through expansion in area cultivated as well as increased yield. If this is sustained, availability and access to food will improve at both household and markets levels in the coming lean season as the availability of imports are constrained by a lack of forex as well as policy measures to curb imports.

  • Despite the anticipated increase supplies, high transaction and transportation costs remained a great concern in Nigeria. The proposed “grain by rail” may not achieve much considering the collapsed state of rail system in the country. Local Prices are expected to remain at very elevated levels in the medium term, resulting in atypical trade flow patterns (within the country and between Nigeria and the broader region).

  • Though there are some improvements in the security situation in North East of Nigeria, trade flows with other parts of the country remained impacted as commodities previously sourced from the North East to South West and South East markets are now mostly procured from markets in the North Central and North West states.

About FEWS NET

The Famine Early Warning Systems Network is a leading provider of early warning and analysis on food insecurity. Created by USAID in 1985 to help decision-makers plan for humanitarian crises, FEWS NET provides evidence-based analysis on some 34 countries. Implementing team members include NASA, NOAA, USDA, and USGS, along with Chemonics International Inc. and Kimetrica. Read more about our work.