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Naira depreciation will worsen Nigeria’s food, energy crisis — World Bank

The World Bank’s recent Commodity Markets Outlook report, shows that the declining value of the Nigerian naira and the currencies of the majority of emerging nations is increasing the cost of food and gasoline, potentially worsening the food and energy crises that many of them already suffer.

The survey showed that, in US dollar terms, , the prices of most commodities have declined from their recent peaks amid concerns of an impending global recession, the report says.

It further notes that from the Russian invasion of Ukraine in February 2022, through the end of last month, the price of Brent crude oil in US dollars fell nearly six percent. Yet, because of currency depreciation, almost 60 per cent of oil-importing emerging markets and developing economies saw an increase in domestic-currency oil prices during this period.

According to the Washington-based bank in terms of local currencies, approximately 90% of these economies likewise experienced a greater increase in wheat prices than an increase in U.S. dollars.

the report notes that rising food prices are a result of rising energy commodity prices, which are used as inputs in agricultural production.

Writing by Julian Osamoto, Editing by Omotola Oguneye