TAMPA, Florida — Located on the western coast of Africa, Nigeria was home to almost 201 million people in 2019. At the onset of the COVID-19 pandemic in 2020, like most countries, Nigeria implemented a lockdown to stop the spread of the virus. As a result of this economic shutdown, food insecurity began to rise. More than 70% of adults in Nigeria are affected by moderate or severe food insecurity. On April 12, 2021, the U.S. Agency for International Development (USAID) in Nigeria implemented the COVID-19 Food Security Challenge to provide $3 million in grants and assistance to youth-led and mid-stage companies working in Nigerian food value chains. The initiative aims to address food insecurity in Nigeria.
Food Insecurity in Nigeria and COVID-19
Pre-pandemic, data from the 2018-2019 General Household Survey reported that 48.5% of the Nigerian adult population experienced moderate or severe food insecurity. After the onset of the COVID-19 pandemic, in June 2020, data from high-frequency phone surveys from the World Bank shows that this rate has increased to roughly 75.5% of Nigerian adults. Experts have good cause for concern surrounding poverty, food insecurity and COVID-19, given the estimates that in the eight-week lockdown period alone, 17 million Nigerians were living in poverty. During this same period, the agri-food business GDP fell about 11% due to food service restrictions.
Experts advise for a shift in Nigeria’s economy. They recommend a shift away from its current oil and remittances-based economy and toward productivity-enhancing and poverty-reducing sectors such as agriculture and manufacturing. They also note the need for funding and investments to build the agri-business sector in Nigeria, which is exactly what the USAID COVID-19 Food Insecurity Challenge provides.
COVID-19 Food Insecurity Challenge in Nigeria
In April 2021, a press release from USAID announced the launch of the COVID-19 Food Insecurity Challenge, which provides grants aimed at addressing food insecurity in Nigeria. The program targets youth-led and mid-stage companies who work in the food industry, aiding them with technical assistance and grant funding. Food insecurity exacerbated by the COVID-19 pandemic prompted this initiative. USAID Mission Director Anne Patterson says the assistance is meant to encourage private-sector solutions to food issues in Nigeria and help innovative Nigerians address food insecurity. The program is set to provide grants of $75,000 to 15-25 youth-led companies and up to $150,000 grants to 10-15 mid-stage companies.
The Aims of the Challenge
Because this challenge comes in response to a disruption in agricultural activity and market as a result of the COVID-19 pandemic and its presence in Nigeria, USAID has certain goals for this particular program. To ensure that the grant money and technical assistance are put to good use, only companies with sustainable and financially viable business models will be provided with support.
In the application, USAID looks for applicants that can demonstrate a direct link between COVID-19 response and food value chains. It also wants to see a direct or indirect benefit for people considered Base of the Pyramid (BoP) in Nigeria. Those eligible to apply are for-profit companies registered in Nigeria that have a local presence.
Besides increasing agricultural productivity, the challenge also aims to increase the income for BoP men and women in urban and rural areas in Nigeria. Additionally, it aims to promote sustainability, biodiversity, climate and environmental resilience, socially responsible marketing and advertising to increase demand for nutritious foods and the development of local food-based models. The challenge, overall aimed at reducing food insecurity in Nigeria, is part of USAID’s Feed the Future initiative.
With creative challenges from USAID supporting and encouraging solutions from people within Nigeria itself, Nigeria’s own people are empowered to directly address the issue of food insecurity.
– Susan Morales
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