Financial Crime World

NIGER: Financial Sanctions to Exacerbate Food Insecurity Crisis

A severe food security crisis is unfolding in Niger, with millions of people at risk of severe hunger and malnutrition. The political crisis and subsequent financial sanctions imposed by international powers are expected to worsen the situation.

Already Strained Food Situation

According to a recent analysis, 3.3 million people (13% of the population) were already severely food insecure during the ongoing lean season. An estimated 7.3 million more people are at risk of falling into severe food insecurity if faced with significant shocks such as price hikes or loss of livelihoods.

Nutrition Crisis

The country is also grappling with a nutrition crisis, with a Global Acute Malnutrition rate of 12.2%, above the World Health Organization’s alert threshold.

Complications from External Factors

The situation is further complicated by:

  • Strained food markets due to skyrocketing inflation in neighboring Nigeria, caused by the suspension of fuel subsidies and India’s ban on rice exports.
  • Niger’s response: a ban on millet and rice exports, exacerbating the already dire situation.

Agro-Pastoral Season at Risk

Experts warn that the ongoing agro-pastoral season is at risk due to severe localized droughts, with significant pasture deficits and reported livestock deaths in Tahoua and Maradi regions. Major concerns also exist for the upcoming harvest in Tillabéri and Dosso.

Devastating Impacts of Financial Sanctions

The financial sanctions are expected to have six devastating impacts on Niger’s food insecurity crisis:

  • Reduced Supply: Suspension of trade and border closures with Nigeria and Benin will reduce supply and increase prices of imported cereals and other food commodities.
  • Decreased Remittances: Financial sanctions will reduce remittance inflows, particularly important for poor households.
  • Negative Impact on Livelihoods: Suspension of trade will negatively affect the livelihoods of Nigérien produce farmers and livestock herders who rely on exports to Nigeria.
  • Job Losses: Potential departure or downscaling of international military forces, embassies, foreign companies will lead to significant job losses.
  • Reduced Government Capacity: Banking freezes and suspension of foreign assistance will reduce government budget, impacting civil servant salaries and the government’s humanitarian response capacity.
  • Impact on Humanitarian Assistance: Border closures and suspension of some donor funding will directly impact WFP and partners’ humanitarian assistance.

Consequences of Financial Sanctions

The consequences of these sanctions are far-reaching, with experts warning that they will lead to an increase in poverty and food insecurity in the long term. The situation is dire, and urgent action is needed to mitigate its devastating effects on millions of people in Niger.