The World Food Programme (WFP) spent about $99.6 million on meal vouchers and cash transfers to alleviate food insecurity in Nigeria in 2023.
Despite the considerable financial efforts by the WFP and governmental interventions, Nigeria’s battle against hunger remains daunting, with the number of food-insecure individuals soaring by 38% to 24.8 million in 2023.
The figures are according to the WFP’s 2023 annual country report for Nigeria. The report read:
Despite the planned amount, the actual spending on cash transfers was relatively low, with only $682,558 utilised from the planned $83.18 million. This underutilisation, amounting to just 0.82% of the earmarked funds, reflects a significant discrepancy between the planned and actual expenditure.
Moreover, the WFP could only disburse 85.76% of the intended funds for food vouchers, spending around $98.95 million out of the planned $115.38 million. These figures highlight the challenges in fully executing the planned financial assistance.
The WFP’s operations encountered hurdles due to high transactional costs exacerbated by cash shortages faced in the country in 2023 as a result of the naira redesign policy. This situation necessitated a shift towards e-vouchers, with 99.3% of cash-based transfers for food assistance being transitioned to electronic platforms.
The report read:
The persistently precarious security situation in Nigeria’s northern states has severely hampered food production, leading to an alarming rise in hunger.
In 2023, 24.8 million Nigerians faced food insecurity, marking a 38% increase from the previous year. The WFP report underscored the link between insecurity and the escalating food crisis, which economic pressures and dependency on imported food commodities have further aggravated.
The report noted:
The report also noted that Nigeria witnessed increased violence and supply chain disruptions, along with challenges posed by fraudulent activities and economic volatility, which intensified the country’s struggle with food insecurity.