Thursday, February 9, 2023
  • Login
No Result
View All Result
The News Beam
  • Home
  • News
    • Politics
    • Business & Economy
    • Sports
    • Entertainment
    • Global
  • Development
    • Health
    • Education
    • MGDs
    • Development Agencies
  • Your Community
    • CDAs
    • LGAs
    • Projects
    • Community Champions
  • The Entrepreneur
    • Street Money
    • SMEs
    • Youthprenuers
    • Agriprenuers
    • Capacity Building
  • Specials
    • Lifestyle
    • Relationships
    • Books & Arts
    • Faith
    • Teens World
    • Guest Columnists
The News Beam
  • Home
  • News
    • Politics
    • Business & Economy
    • Sports
    • Entertainment
    • Global
  • Development
    • Health
    • Education
    • MGDs
    • Development Agencies
  • Your Community
    • CDAs
    • LGAs
    • Projects
    • Community Champions
  • The Entrepreneur
    • Street Money
    • SMEs
    • Youthprenuers
    • Agriprenuers
    • Capacity Building
  • Specials
    • Lifestyle
    • Relationships
    • Books & Arts
    • Faith
    • Teens World
    • Guest Columnists
No Result
View All Result
The News Beam
Home News Business & Economy

EXPLAINER: HOW THE WAR IN UKRAINE IS AFFECTING NIGERIAN ECONOMY

June 14, 2022
in Business & Economy, Global
Reading Time: 3 mins read
0
A A
0
Ukraine President, with military officials

Ukraine President, with military officials

Share on FacebookShare on Twitter

The war in Ukraine which started on February 24th is affecting the Nigerian economy and Nigerians in many ways. Some are direct while others are indirect.

According to the World Bank in a recent report, the direct ways the war is affecting Nigeria’s economy are: trade disruption; and commodity (mainly food, fuel, and fertilizer) prices.
The indirect ways include: The transmission of higher commodity prices to growth; and the tightening of global financial conditions, which impact foreign financing flows into Nigeria.

Trade disruptions

The war adds to the headwinds to global recovery by further disrupting supply chains, especially those between Russia and Ukraine and the rest of the world. Nigeria is among the top-ten importers of wheat grains from Russia, which accounted for 19 percent of Nigeria’s total wheat imports in 2020. As a result of the war, there is a gap that Nigeria must seek to fill from other sources.

Commodity prices

Disruptions caused by the war are causing supply shortfalls and increases in the international prices of commodities. This includes the cost of fuel and food staples (in particular, cereals and edible oils) and fertilizers, products for which Russia and Ukraine hold a considerable share of global exports.
In addition, higher cereal prices raise animal feed prices and, consequently, poultry and meat. Higher fuel and food prices in Nigeria exacerbate pre-existing inflationary pressures, eroding purchasing power and hurting the poor.

EXPLAINER: HOW THE WAR IN UKRAINE IS AFFECTING NIGERIAN ECONOMY

The price movements for essential food items may be leaving some Nigerians especially worse-off and at risk of falling into—or deeper into—poverty. This is determined by the mix of goods that households consume and produce.
For example, raw wheat prices have increased dramatically since the start of the war in Ukraine, rising by 35 percent between January and March 2022. Still, raw wheat constitutes only a tiny share of what Nigerians consume, limiting the impact on welfare.
However, although price increases for wheat-derived products such as flour and bread and vegetable oil were much more modest, they threatened households’ purchasing power far more, making up a much larger share of their consumption basket. This demonstrates the interlinked nature of international and domestic markets for raw and refined products.
Shocks to purchasing power may be partially offset for those households that produce and sell goods whose prices are
increasing, especially for corn-producing households in Nigeria’s middle-belt (in states such as Niger, Plateau,
and Taraba). However, this does little to help poor and vulnerable households in Nigeria’s north, who do not produce corn but buy wheat-derived products and other staples (in states such as Jigawa, Sokoto, and Zamfara). This is particularly worrying, as many northern Nigerians’ food security was already threatened even before the current cost-of-living crisis.
The higher crude oil prices triggered by the war (33 percent increase between January and March 2022) would ordinarily be beneficial to Nigeria’s current account position and its fiscal position. However, there has been no boost on the budgetary side due to continued challenges in oil production and the burden of the petrol subsidy. As a result, we expect the fiscal deficit in 2022 to grow to 5.8 percent of GDP, up from our earlier projection of 5.3 percent.

READ ALSO

  • What to Do in a Crypto Bear Market?
  • Price of Bread to rise further to N900
  • 5 Investment Opportunities in Nigeria with Highest Returns
Tags: UkraineUkraine war
ShareTweetSend
Previous Post

What to Do in a Crypto Bear Market?

Next Post

How JSS 2 student discovered the Power of Giving

Related Posts

REVEALED! Bank officials hiding new notes behind old notes
News

REVEALED! Bank officials hiding new notes behind old notes

February 4, 2023
52
Banks suffer 11% reduction in new loans as customers resist interest rate hike
News

Shortage of New Naira notes: Emefiele begs Nigerians, says CBN addressing supply hiccups

February 3, 2023
65
Banks suffer 11% reduction in new loans as customers resist interest rate hike
Business & Economy

New Naira Notes: CBN allows  banks to pay N20k per day over-the-counter

February 2, 2023
41
New Naira Notes: Emefiele blames banks for scarcity, abuse at parties
Finance

New Naira Notes: Emefiele blames  banks for scarcity, abuse at parties

January 31, 2023
37
Delia Ferreira Rubio, Transparency International Chairperson
News

Corruption: Nigeria ranks 150 out of 180 countries

January 31, 2023
33
Inflation in December 2022
News

What you need to know: December inflation rate at   21.34%

January 16, 2023
19
Next Post
Folasade Daini

How JSS 2 student discovered the Power of Giving

BREAKING! Inflation Rate rises to 17.71%, highest in 10mths-NBS

BREAKING! Inflation Rate rises to 17.71%, highest in 10mths-NBS

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

  • Trending
  • Comments
  • Latest
How to Apply for the N25 Billion Youth Investment Fund of the Federal Govt

How to Apply for the N25 Billion Youth Investment Fund of the Federal Govt

October 16, 2020
Covid-19: See List of Vaccination Centers in Lagos State

Covid-19: See List of Vaccination Centers in Lagos State

August 19, 2021
Banks suffer 11% reduction in new loans as customers resist interest rate hike

CBN reveals 9 Business Categories that recorded Increased Activity This Month

9
BREAKING ! How Hurriedly installed Application Saved Central Bank of Nigeria website from 'Anonymous' hack

BREAKING ! How Hurriedly installed Application Saved Central Bank of Nigeria website from ‘Anonymous’ hack

7
REVEALED! Bank officials hiding new notes behind old notes

REVEALED! Bank officials hiding new notes behind old notes

February 4, 2023
Banks suffer 11% reduction in new loans as customers resist interest rate hike

Shortage of New Naira notes: Emefiele begs Nigerians, says CBN addressing supply hiccups

February 3, 2023

Categories

  • Agriprenuers (12)
  • Books & Arts (7)
  • Business & Economy (436)
  • Capacity Building (25)
  • CDAs (2)
  • Community Champions (1)
  • Crime (196)
  • DEVELOPMENT (74)
  • Development Agencies (109)
  • Economy (318)
  • Education (192)
  • Entertainment (405)
  • Faith (55)
  • Finance (339)
  • Global (103)
  • Guest Columnists (17)
  • Health (56)
  • Health (242)
  • Industry (149)
  • LGAs (1)
  • Lifestyle (98)
  • MGDs (10)
  • News (2,298)
  • Politics (374)
  • Projects (2)
  • Relationships (70)
  • Security (164)
  • SMEs (15)
  • SPECIALS (87)
  • Sports (311)
  • Street Money (9)
  • Tech (138)
  • Teens World (3)
  • The Entrepreneur (26)
  • Uncategorized (70)
  • Your Community (33)
  • Youthprenuers (14)
No Result
View All Result
News
Politics
Business & Economy
Sports
Entertainment
Global

Development

Health
Education
MGDs
Development Agencies

Your Community

CDAs
LGAs
Projects
Community Champions

The Entrepreneur

Street Money
SMEs
Youthprenuers
Agriprenuers
Capacity Building

Specials

Lifestyle
Relationships
Books & Arts
Faith
Teens World
Guest Columnists

Follow Us

  • About Us
  • Contact Us
  • Terms of Usage
  • Privacy Policy
  • Advert Rates
  • Newsletters
  • Resources
  • Submit a Story
No Result
View All Result
  • Home
  • News
    • Politics
    • Business & Economy
    • Sports
    • Entertainment
    • Global
  • Development
    • Health
    • Education
    • MGDs
    • Development Agencies
  • Your Community
    • CDAs
    • LGAs
    • Projects
    • Community Champions
  • The Entrepreneur
    • Street Money
    • SMEs
    • Youthprenuers
    • Agriprenuers
    • Capacity Building
  • Specials
    • Lifestyle
    • Relationships
    • Books & Arts
    • Faith
    • Teens World
    • Guest Columnists
  • Login

© 2020 The News Beam is the highest circulated and most read newspaper in Nigeria. The online portal of The News Beam is the most visited website in the world.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.

Subscribe With The News Beam