Economy
Hunger Persists Despite Strong Global Harvests—FAO
By Modupe Gbadeyanka
According to the new edition of FAO’s Crop Prospects and Food Situation report, global food supply conditions are robust, but access to food has been dramatically reduced in areas suffering civil conflicts, while drought conditions are worsening food security across swathes of East Africa.
Some 37 countries require external assistance for food, 28 of them in Africa as a result of lingering effects of last year’s El Niño-triggered droughts on harvests in 2016.
Yet, while agricultural production is expected to rebound in southern Africa, protracted fighting and unrest is increasing the ranks of the displaced and hungry in other parts of the world.
Famine has been formally declared in South Sudan and the food security situation is of grave concern in northern Nigeria, Somalia and Yemen.
“This is an unprecedented situation. Never before have we been faced with 4 threats of famine in multiple countries simultaneously,” said FAO Assistant Director-General Kostas Stamoulis, head of the Economic and Social Development department. “It demands swift action which should consist of immediate food assistance but also livelihood support to ensure that such situations are not repeated.”
In South Sudan, 100,000 people were facing famine in Leer and Mayendit Counties, part of former Unity State, while there was an “elevated risk” that similar conditions existed in two nearby counties.
Overall, about 4.9 million people across the country were classified as facing crisis, emergency or famine. That number is projected to increase to 5.5 million, or almost half the country’s population, at the peak of the lean season in July.
In northern Nigeria, 8.1 million people are facing acute food insecurity conditions and require urgent life-saving response and livelihood protection. That comes despite the above-average cereal harvest in 2016 and reflects the disruption caused by conflict as well as the sharp depreciation of the Naira.
In Yemen, 17 million people or two-thirds of the population are estimated to be food insecure, while almost half of them are in need of emergency assistance, with the report noting that “the risk of famine declaration in the country is very high.”
In Somalia, the combination of conflict, civil insecurity and drought have resulted in more than double the number of people – now estimated at 2.9 million – being severely food insecure from six months ago. Drought has curtailed fodder for pastoralists and the third consecutive season of poor rainfall is estimated to have reduced crop production in southern and central regions to 70 percent below average levels, leaving food stocks depleted.
Conflicts and civil unrest in Afghanistan, Burundi, Central African Republic, Democratic Republic of Congo, Iraq, Myanmar and Syria are also exacerbating food insecurity conditions for millions of people as well affecting nearby countries hosting refugees. In addition, the drought in East Africa in late 2016 has heightened food insecurity in several countries in the sub-region.
Worldwide trends
Cereal production made quite strong gains in the world overall in 2016, with a record recovery in Central America, and larger cereal crops in Asia, Europe and North America.
Looking ahead, FAO’s first global wheat production forecast for 2017 points to a 1.8 percent decline from last year’s record level, due mostly to a projected 20 percent output drop in the United States of America, where the area sown to winter wheat is the lowest level in over 100 years.
Prospects are favourable for the 2017 maize crop in Brazil and Argentina and the outlook is generally positive for coarse grains throughout the Southern Hemisphere. Prospects for rice are mixed, but it is still too early to make firm predictions for many of the world’s major crops.
Maize harvests in Southern Africa, slashed by El Niño, are forecast to recover this year, with South Africa’s output expected to increase by more than 50 percent from 2016, with positive trends likely in most nearby countries. However, an outbreak of armyworms, along with localized flooding in Mozambique, Zambia and Zimbabwe, could limit larger production gains in 2017.
The 37 countries currently in need of external food assistance are Afghanistan, Burkina Faso, Burundi, Cameroon, Central African Republic, Chad, Congo, Democratic People’s Republic of Korea, Democratic Republic of the Congo, Djibouti, Eritrea, Ethiopia, Guinea, Haiti, Iraq, Kenya, Lesotho, Liberia, Libya, Madagascar, Malawi, Mali, Mauritania, Mozambique, Myanmar, Niger, Nigeria, Pakistan, Sierra Leone, Somalia, South Sudan, Sudan, Swaziland, Syria, Uganda, Yemen and Zimbabwe.
By Adedapo Adesanya
Four securities weakened the NASD Over-the-Counter (OTC) Securities Exchange by 1.95 per cent on Friday, erasing N41.17 billion from the bourse, which had its market capitalisation at N2.567 trillion compared with the previous session’s N2.618 trillion.
In the same vein, the NASD Unlisted Security Index (NSI) decreased at the close of business by 85.28 points to 4,277.07 points from 4,362.32 points.
The price decliners were led by 11 Plc, which gave up N20.50 to sell at N200.50 per share compared with the preceding day’s N221.00 per share, FrieslandCampina Wamco Nigeria Plc dropped N16.94 to close at N155.20 per unit versus Thursday’s closing price of N172.14 per unit, Central Securities Clearing System (CSCS) Plc went down by N2.11 to N84.68 per share from N86.79 per share, and Afriland Properties Plc lost 11 Kobo to end at N16.74 per unit, in contrast to the N16.85 per unit it closed a day earlier.
During the trading day, the value of transactions jumped by 172.1 per cent to N29.9 million from the preceding session’s N10.9 million, and the volume of trades soared by 136.5 per cent to 955,096 units from the previous 403,901 units, while the number of deals went down by 11.4 per cent to 31 deals from 35 deals.
Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units worth N6.5 billion, and CSCS Plc with 68.6 million units sold for N4.7 billion.
GNI Plc also ended the session as the most traded stock by volume on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, trailed by Infracredit Plc with 2.3 billion units traded for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
By Dipo Olowookere
The last trading session of this week on the floor of the Nigerian Exchange (NGX) Limited ended on a negative note, with a 0.66 per cent loss on Friday.
This was influenced by sustained selling pressure and cautious trading, which forced investors into profit-taking.
Data obtained by Business Post showed that the energy sector fell by 4.66 per cent, the insurance counter dipped by 2.23 per cent, the consumer goods index depreciated by 0.96 per cent, and the banking segment shed 0.28 per cent, while the industrial goods space remained unchanged.
At the close of business, the All-Share Index (ASI) of Nigeria’s stock exchange went down by 1,531.81 points to 232,049.02 points from 233,580.83 points, and the market capitalisation dropped N983 billion to settle at N148.905 trillion compared with Thursday’s N149.888 trillion.
Aradel was the worst-performing equity after it lost 10.00 per cent to close at N1,417.50. International Energy Insurance slipped by 9.95 per cent to N5.79, Trans-Nationwide Express depreciated by 9.89 per cent to N3.28, eTranzact crashed by 9.79 per cent to N14.75, and UPDC slumped by 9.72 per cent to N28.12.
The best-performing equity for the day was Universal Insurance, which gained 6.32 per cent to close at N1.01, McNichols grew by 5.52 per cent to N8.60, Linkage Assurance expanded by 4.67 per cent to N1.57, NGX Group appreciated by 4.35 per cent to N120.00, and Transcorp increased by 3.62 per cent to N41.50.
As look at the activity level indicated that investors traded 388.7 million stocks worth N18.4 billion in 44,631 deals compared with the 393.7 million stocks valued at N19.2 billion executed in 45,813 deals a day earlier, representing a decline in the trading volume, value, and number of deals by 1.27 per cent, 4.17 per cent, and 2.58 per cent, respectively.
By Adedapo Adesanya
The Naira recorded a loss of 82 Kobo or 0.06 per cent against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, June 26, exchanging at N1,380.93/$1, in contrast to the previous day’s rate of N1,380.11/$1.
Equally, the domestic currency further weakened against the Pound Sterling in the official FX market yesterday by N6.06 to settle at N1,824.90/£1 versus the preceding session’s N1,818.84/£1, and lost N10.74 on the Euro to sell at N1,577 .58/€1 versus N1,566.84/€1.
At the GTBank forex counter, the Naira depreciated against the greenback during the session by N4 to close at N1,387/$1, in contrast to Thursday’s value of N1,383/$1, and at the parallel market, it was unchanged at N1,395/$1.
Interbank FX activity among financial institutions has fluctuated amid a sharp slowdown in forex market interventions by the Central Bank of Nigeria (CBN), as it allows demand and supply to move the market.
Also, a stronger greenback has generally put significant pressure on emerging-market currencies.
Nigeria has accessed the first tranche of a proposed $5 billion derivatives financing arrangement with First Abu Dhabi Bank PJSC, the largest lender in the United Arab Emirates (UAE).
The $5 billion facility, approved by the National Assembly earlier this year, is part of the federal government’s plan to diversify external financing sources and reduce borrowing costs. Structured as a Total Return Swap with First Abu Dhabi Bank, proceeds are earmarked for refinancing debt and supporting infrastructure financing.
If the proceeds are brought into the country through the official FX market, the transaction will increase the currency reserves or Dollar liquidity.
At the cryptocurrency market, Solana (SOL) grew by 2.2 per cent to $71.92, Cardano (ADA) gained 1.1 per cent to trade at $0.1474, Ripple (XRP) also appreciated by 1.1 per cent to $1.05, Dogecoin (DOGE) expanded by 0.9 per cent to $0.0755, and Ethereum (ETH) improved by 0.4 per cent to $1,578.84.
On the flip side, TRON (TRX) slid 0.6 per cent to $0.3203, Binance Coin (BNB) slumped by 0.3 per cent to $564.33, and Bitcoin fell by 0.2 per cent to $60,219.37, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
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