NIGERIA – The World Bank is set to disburse a total of US$30 billion to fund existing and new projects in Nigeria and other countries as part of a global response to combat the ongoing food security crisis.
The international financial institution, in a statement on the funding plan, noted that the financing will include US$12 billion funding for new projects and US$18.7 billion in existing projects with direct links to food and nutrition security issues.
The investments, which will draw on the full range of the World Bank’s financing instruments, complemented by analytical work, are also expected to support agriculture, and social protection to alleviate the effects of rising food prices, and water and irrigation projects.
Malpass encouraged world leaders to make concerted efforts toward increasing the supply of energy and fertilizer and to support farmers to increase plantings and crop yields.
He urged the leaders to remove policies that hinder exports and imports, divert food to biofuel or encourage unnecessary storage in order to inform and stabilize markets.
“It is critical that countries make clear statements now of future output increases in response to Russia’s invasion of Ukraine,” he stated.
The World Bank, in its recent report on the impact of Ukraine’s war on commodity markets, asserted that the war has caused major supply disruptions globally and led to historically higher prices for a large number of basic commodities.
The report projected a significantly higher valuation for commodities in 2022 compared to 2021, adding that prices would remain more pronounced in the medium term, particularly commodities such as energy, fertilizers, wheat, and metals where Russia and Ukraine are large exporters.
“The outlook for commodity markets depends heavily on the duration of the war in Ukraine and the severity of disruptions to commodity flows, with a key risk that commodity prices could be higher for longer,” the report stated.
The project to address food insecurity is expected to be implemented over the next 15 months with the majority of resources going to Africa and the Middle East, Eastern Europe and Central Asia, and South Asia.