AFEX Forecast Increase In Commodity Prices

In its 2023 Crop Projection Report, Afex has projected an increased in prices of commodities in the 2023/2024 season for Nigeria

According to the report, the reason behind high prices across all commodities is due to the general decline in production coupled with increasing demand for commodities for consumption, processing and exports.

AFEX, in its report, at its Abuja office explained that food insecurity and food inflation is a major challenge facing Nigeria, with a 5.7 million metric ton shortage across human consumption and agro-processing, and a historically high food inflation rate of 30.64 per cent.

It said, “This contributed to an increase of 34 per cent and a baseline pricing of N353,000/metric tonne (mt), which is expected to rise to NGN400,000/mt and projected to stabilize at NGN480,000 to N500,000/mt by Q3 2023.

“It will be noted that Nigeria rice millers have been depending on importation of paddy from countries like India to service their mills given low production of the raw materials by farmers due to insecurity among other factors."

However, it also noted that as food prices continue to surge, as witnessed in the 2023 season, food security challenges will continue to persist, reducing Africa’s capacity to achieve zero hunger by 2030.

Nigeria’s hunger index score remains alarmingly high, as the country ranks 109th out of 125 countries, which indicates a severe food crisis, it stated.