The International Monetary Fund says the ongoing war by Russian military in Ukraine will have adverse consequences on the economy of Nigeria and other African countries.
IMF Managing Director Kristalina Georgieva stated this after a meeting with the United Nations Economic Commission for Africa (UNECA), African Ministers of Finance and Central Bank Governors.
“Africa is particularly vulnerable to impacts from the Ukraine war through four main channels—increased food prices, higher fuel prices, lower tourism revenues, and potentially more difficulty accessing international capital markets,” Ms Georgieva said.
Ms Georgieva said the war in Ukraine and the sanctions being imposed on Russia would have “far-reaching consequences” on the continent still recovering from economic setbacks created by COVID-19 pandemic.
Ms Georgieva said the Fund is prepared to help African countries address the repercussions of the war, and to help design and implement reforms through policy advice, capacity development, and credit facilities.
The Russian invasion of Ukraine, which began on February 24, has pushed food, energy and commodity prices to new heights. The two countries are among world’s biggest producers of wheat and crude oil.
As at March 8, the price of Brent crude oil rose to $130 a barrel, as disruption of global supply chains led to the increase of prices.
Egypt, the world’s largest importer of wheat, announced that it would increase its budget for wheat purchases” by 15 billion Egyptian pounds” (865 million euros), as its annual inflation reached 10 per cent in February, the highest since mid-2019.