To tackle the persisting food Insecurity plaguing Nigeria, the World Food Programme (WFP) dedicated $99.6 million towards food vouchers and cash transfers in 2023. Nevertheless, the country continues to struggle against hunger, as the number of individuals facing food insecurity surged by 38% to 24.8 million, despite substantial financial investments and government aid, as reported in the WFP’s 2023 annual country report for Nigeria. The impact of WFP’s aid in boosting local agricultural output goes beyond just its program activities, injecting more than $175 million into Nigeria’s agricultural Economy through its operational approach.
In conflict-affected regions, the organization prioritizes sourcing 95% of food for Vulnerable Populations locally, totalling more than $6 million. Additionally, $6 million was allocated for e-vouchers and direct cash transfers, benefiting over 1.1 million food-insecure individuals by increasing their ability to purchase food from nearby markets. Although the initial budget set aside for cash transfers was substantial, only a mere $682,558 was actually spent out of the total of $83.18 million. This discrepancy, resulting in an underutilization of just 0.82% of the allocated funds, highlights a significant difference between the intended and real expenditure.
Cash-based transfers for food aid were moved to digital systems.
Additionally, the WFP distributes 85.76% of the designated funds for food vouchers, managing to spend approximately $98.95 million of the projected $115.38 million. These numbers underscore the difficulties in effectively implementing the proposed financial aid. The organization faced obstacles in its operations due to elevated transactional expenses worsened by cash scarcities caused by the naira’s redesign policy in 2023. Due to these circumstances, there was a need to switch to e-vouchers, resulting in 99.3% of cash-based transfers for food aid moved to digital systems.
During the lean season, the organization collaborated with communities in need to expand food aid for 1.8 million individuals. When faced with funding shortages, the WFP made the difficult decision to decrease assistance for conflict-affected and food-insecure populations after consulting with those impacted. To ensure continued support for those in need, WFP converted 99.3% of cash-based food aid to electronic vouchers. The organization is actively exploring the implementation of plugPAY for facilitating large-scale payments that are securely transferred from the WFP directly to the bank accounts of aid recipients.
Local and global economic factors have worsened the situation.
The notable increase in hunger levels witnessed within the country is a direct consequence of the ongoing insecurity in the northern region which has significantly impacted agricultural output. A staggering 24.8 million Nigerians experienced food insecurity in 2023, representing a 38% surge compared to 2022. The connection between insecurity and the worsening food shortage was emphasized in the WFP report, adding that economic challenges and reliance on imported food items have exacerbated the situation. Nigeria continues to struggle with widespread food insecurity, despite receiving substantial financial support from the Government and its allies.
The country now holds the unfortunate distinction of being ranked second worldwide in terms of the number of people facing food crisis. Economic factors both globally and domestically have worsened the situation, leading to increased costs for imported food, transportation, and farming supplies. As a result, millions of Nigerians are finding it difficult to access and afford food. According to the report, Nigeria experienced rising violence and disruptions in the supply chain, as well as difficulties stemming from fraudulent behaviour and economic instability. These factors have exacerbated the issue of food insecurity in the country.
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David Stevenson, Country Director and Representative of WFP in Nigeria, mentioned that the organization has a limited supply of food for its operations and will only make purchases from local markets when prices are steady. In its Food Security report, the World Bank forecasted a dire food crisis in seven states in Northern Nigeria. Also, the Food and Agricultural Organisation (FAO) issued a warning that approximately 26.5 million Nigerians will experience hunger in 2024.